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Following is a question by the Hon Howard Young and a reply by the Secretary for Commerce, Industry and Technology, Mr Joseph WP Wong, in the Legislative Council today (January 17):
Question:
The Government consulted the public in March last year on the proposal to establish a unified regulator, i.e. the Communications Authority (CA), to replace the Telecommunications Authority and the Broadcasting Authority. In this connection, will the Government inform this Council of:
(a) the results of the analysis on the views collected in the public consultation exercise;
(b) the anticipated impact of the establishment of the new regulator on the industries and the public; and
(c) the latest details of the plan and the legislative timetable for establishing CA?
Reply:
Madam President,
In Hong Kong, we need a unified regulator overseeing both the telecommunications and broadcasting sectors to make effective and timely responses in the light of media and technology convergence to enable the sustained development of the broadcasting, telecommunications and the Internet services industries. In mid-2006, we completed a public consultation on the proposed setup of a Communications Authority (CA) by merging the Broadcasting Authority (BA) and the Telecommunications Authority (TA).
The new CA will continue to promote innovation and competition in the communications market. It will be tasked, among other things, to consolidate the existing legislation governing the telecommunications and broadcasting sectors to ensure that our regulatory approach is on a par with international practice. The primary objective is to avoid unnecessary intervention in the industries and to bring benefits to the consumers and the public.
Regarding parts (a), (b) and (c) of the question, my reply is as follows:
(a) During the public consultation between March 3 and June 16, 2006, we received a total of 30 submissions on the proposed establishment of the CA, including those from major broadcasting and telecommunications operators as well as representative bodies of the industries. The submissions have been uploaded to the website of the Communications and Technology Branch of the Commerce, Industry and Technology Bureau.
In general, the proposals of merging the BA and the TA into a unified regulator for the electronic communications sector and adopting a committee structure for the new CA were well received by the public and the industries.
The public and the industries also strongly supported that the Government should conduct a comprehensive review of the relevant ordinances and regulations governing the broadcasting and telecommunications sectors with a view to meeting the challenges brought about by technological convergence. We received diverse views on the timetable of the review though. Some maintained that the Government should conduct a comprehensive review of the broadcasting and telecommunications legislation now and propose relevant legislative amendments at the same time when we were to introduce new laws to merge the two existing regulatory authorities. On the other hand, some considered that it would take time to conduct such a comprehensive review of the broadcasting and telecommunications legislation and that amending the legislation concerned would require further consultation with the industries and the public. They were of the view that the Government should not delay the establishment of a unified regulatory body and hinder the development of the industries.
Having examined these views, we consider that the proposed staged approach, i.e. to first legislate and amalgamate the BA and the TA, and then the newly formed CA and the Administration to review the relevant legislation, best suits the needs of the public and the industries. Such an approach will expedite the establishment of the CA to enforce the relevant legislation on telecommunications and broadcasting immediately. By reviewing and rationalising the Broadcasting Ordinance and Telecommunications Ordinance together with the Administration, the CA will have ownership and better understanding of the regulatory regime that eventually emerges.
(b) The CA will be equipped with a broad cross-sectoral perspective and competence to formulate timely and effective response to the converging environment. It will be a one-stop-shop for tackling all electronic communications issues. As a unified regulator, the CA can ensure consistency in regulatory approach and practice in a converging environment, help the industries achieve business synergy, promote their further development, and facilitate the introduction of new technology and services. Consumers stand to gain in these developments.
(c) The legislative exercise of setting up of the CA mainly involves the statutory establishment, organisational framework and working procedures of the CA in order to take over and perform all the functions of the two existing regulatory authorities, the BA and the TA. The scope of the existing Office of the Telecommunications Authority Trading Fund will also be amended and transformed into the trading fund for the CA. We are now working out the specific details for the new legislation, with a view to introducing a bill to the Legislative Council within the current legislative session.
Ends/Wednesday, January 17, 2007
Issued at HKT 14:15
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