The Economic Benefits of Telecoms Liberalization in Hong Kong

This is a revised and updated version of a study undertaken August – October 1997 on behalf of the Hong Kong Committee for Pacific Economic Co-operation (HKCPEC). The chosen method of study took into account (i) the short timeframe available for the study; (ii) the short timeframe over which the liberalization of the fixed wireline services has been introduced which limits the applicability of longitudinal analysis; (iii) the need to come up with some dollar estimates of  real gains; (vi) the desirability to provide readers unfamiliar with the specifics Hong Kong’s telecommunications sector a brief, but nevertheless comprehensive introduction. The method employed is principally interpretation of data from either published sources or inferred from information gathered through interviews. However this revised paper also includes an assessment of the likely effects on tariffs and revenues of the liberalization of Hong Kong’s international market which takes effect from 1 January 1999. The analysis borrows from a similar exercise by the Australian Industry Commission in March 1997.



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