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Hong Kong¡¯s market-driven approach had fostered an innovative and competitive telecommunications industry, comprising local, Mainland China and overseas operators making investment in facilities and developing new services and products to satisfy a community that was ever receptive to the rollout of new and advanced technology.
The Secretary for Commerce and Economic Development, Mr Frederick Ma, made these remarks today (April 24) while addressing a plenary session on changing market profiles and flexible regulatory frameworks at the 7th APEC Ministerial Meeting on Telecommunications and Information Industry (TELMIN 7) in Bangkok, Thailand.
¡°Today, virtually all aspects of the telecommunications market in Hong Kong are fully liberalised. There is no pre-determined quota of licences for any kind of telecommunications service operators. There has also been no investment restriction imposed on foreign entities owning telecommunications facilities or operating telecommunications services in Hong Kong.¡±
¡°Hong Kong consumers are enjoying the fruits of a liberalised telecommunications market which is light-handedly regulated. Hong Kong¡¯s telecommunications market is one of the most competitive in the world,¡± he said, noting that there was roll-out of a multiple of end-to-end telecommunications networks to offer truly facilities-based competition in the market.
Five fixed network operators are competing with each other at the retail level, providing voice, broadband and pay TV services on a standalone or bundled basis to end customers. There are also five mobile networks, which all offer multi-media services on top of the basic voice and data services.
As of November 2007, out of the total 2.5 million households in Hong Kong, 79% were connected by at least two end-to-end networks self-built by the operators, thus allowing choice for the consumers. Meanwhile, 55% of the local households were connected to at least three networks, which made Hong Kong unique in the world.
Mr Ma pointed out that in the early 1990s, the Government had already recognised that the competitiveness of Hong Kong¡¯s telecommunications market would reinforce the overall competitiveness of its economy, and thus embarked on a journey of market liberalisation.
Looking ahead, Mr Ma noted that new issues would surface as market and technology develop. On the realisation of fixed-mobile convergence, he said the Government would provide a conducive regulatory framework by proposing a licensing regime which enhanced operators¡¯ flexibility in the provision of their services.
¡°To facilitate the introduction of advanced technology and more efficient services, we will keep monitoring the market trend and reviewing our licensing regime to ensure that we do not inadvertently become an obstacle to market development, ¡± he said.
He said the Government was closely monitoring the development of the Next Generation Network (NGN), which would integrate fixed, mobile and data networks, and its impact on the future regulatory framework. The Government would create an enabling environment to facilitate the operators to make transition to NGN as and when they see fit.
Mr Ma held a bilateral meeting this morning with the Minister for Broadband, Communications and the Digital Economy of Australia, Mr Stephen Conroy, to discuss matters of mutual interest.
Ends/Thursday, April 24, 2008
Issued at HKT 19:06
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