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The Telecommunications Authority (Authority) issued the following statement in response to the announcement by Mr Francis Leung today (November 12) on the acquisition by various parties of the shareholding in PCCW Limited:
The Authority will continue to take all necessary actions to enforce rigorously the provisions in the Telecommunications Ordinance (TO) safeguarding competition in the market and to ensure that conditions under the carrier licences held by companies in the PCCW group will be complied with.
The Authority will as soon as possible contact the relevant parties to ascertain whether there will be a change, in beneficial ownership or voting control or in relation to power to influence the affairs of a carrier licensee,as defined in section 7P of the TO as a result of the acquisition. Under section 7P, the Authority may, within 14 days after the change has occurred, commence an investigation into the effect of the change on competition in the market. If the Authority after the investigation forms the opinion that the change has the effect of substantially lessening competition in a telecommunications market, it maydirect the licensee to take action to eliminate or avoid such effect.
According to the fixed carrier licence held by PCCW-HKT Telephone Limited, it has to operate, maintain and provide a good, efficient and continuous service in a manner satisfactory to the Authority. In addition, all licensees are required to comply with sections 7K, 7L and 7N of the TO which prohibit anti-competitive agreements and conduct. The Office of the Telecommunications Authority will ensure that the carrier licensees within the PCCW group will continue to provide satisfactory services in compliance with their licence conditions and that competition in the telecommunications market will be safeguarded.
Ends/Sunday, November 12, 2006
Issued at HKT 19:57
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