The true cost of the Hongkong Telecom deal will be double the $6.7 billion in cash compensation, according to papers presented to provisional legislators.
They point to the company's total benefits exceeding $13 billion, more than $2,100 for every person in the SAR.
That is the equivalent of two years' social security payments to the poor.
In addition to the tax-free $6.7 billion, the deal means consumers will pay an extra $3.4 billion in local line rentals until the year 2006, the Government estimates. In addition, the royalties Hongkong Telecom pays to the Government will also be lost, totalling $3.1 billion.
These royalties stopped accruing as of yesterday - even though the company's monopoly only completely expires at midnight on December 31, 1999.
However, Dr John Ure, of the University of Hong Kong's Telecommunications Research Project, said that rough calculations showed the compensation 'doesn't seem too outrageous'.
