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Hong Kong maintained its position as a leading market with effective competition in telecommunications by adopting more balanced and advanced approach in promoting market competition and network rollout, according to the competition benchmarking report published by the Office of the Telecommunications Authority (OFTA) today (December 29).
The report is on the effectiveness of competition in Hong Kong's telecommunications market, as benchmarked against seven markets -- Australia, Japan, Singapore, South Korea, Sweden, United Kingdom and the United States. The study was commissioned by OFTA and undertaken by an independent consultant.
"We are pleased to note the achievements that Hong Kong has made to maintain its position as the leading market in the world in terms of effectiveness of competition in the telecommunications market," a spokesman for OFTA said.
"Compared with other review markets, Hong Kong has adopted a more balanced approach in promoting market competition and more advanced approach in encouraging network rollout, as shown in its initiatives in implementing ex-post regulation of tariffs of the fixed incumbent operator and full withdrawal of mandatory Type II interconnection at telephone exchange level by June 30, 2008," the spokesman continued.
Consumers have continued to derive substantial benefits in terms of both savings in cost of telecommunications services and increase in service take-up. The study reveals that Hong Kong has the highest outgoing IDD traffic in the world, rising from 585 minutes per capita in 2002 to 707 minutes per capita in 2004 (i.e. 21% increase). In 2004, among the review markets, Hong Kong also has the highest penetration rate in the mobile sector as well as high broadband penetration rate second only to South Korea.
"Hong Kong maintains its position as one of the least expensive markets for telecommunications services over the years. This, in turn, stimulates service take-up and benefits consumers.
"In terms of product innovation and development, Hong Kong is one of the leading markets among other review markets, as is evident by its largest number of IPTV (i.e. television over broadband Internet) subscribers in the world," the spokesman said.
On the other hand, the report highlights that the emergence of new technologies and fixed-mobile convergence will pose challenges to existing regulatory frameworks.
"OFTA will continue to monitor various aspect of the telecommunications market development and to align the regulatory regime from time to time so as to facilitate technological applications, infrastructure investment, market development and enhancement of consumer benefits in Hong Kong," the spokesman said.
The report of the study can be downloaded from OFTA's website at http://www.ofta.gov.hk.
Background:
On June 20, 2003, OFTA published the first international benchmarking report on the effectiveness of competition in Hong Kong's telecommunications market. The report published today is an update of that first study.
The study assesses the effectiveness of competition by comparing a range of objective competition indicators with comparable overseas economies. The scope of the study included the local fixed voice sector, mobile sector, data access (i.e. broadband services) sector and international services sector. It focuses on four key competition issues, including (i) competition environment and regulatory framework, (ii) development and effectiveness of competition, (iii) consumer benefits derived from competition and (iv) industry investment.
Ends/Thursday, December 29, 2005
Issued at HKT 15:26
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