China's role in Hong Kong's telecommunications deregulation: A political and economic assessment

Paul S. N. Lee

Telecommunications Policy, 1994, vol. 18, issue 3, 254-264

Abstract: Since 1990 control over telecommunications deregulation in Hong Kong has fallen into the hands of China. China has two goals in telecommunications development in Hong Kong: profits and control. The most likely winner of the second network in Hong Kong, if it is comparable to the existing one in size and scope of services, will be one which ensures secure control by China. If a number of small players are introduced into the network services market, perpetuating the dominance of the existing network, China will opt for continued control of the latter, in addition to insisting on a share of the lucrative profits. It seems China has opted for continued control of the existing network for the time being. But it is doubtful whether China will be satisfied with the existing level of control after 1997. How China will increase its share of profits and control in the existing network is an interesting question.

Date: 1994
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