CONFIDENTIAL
Direct Interconnection of PMRS to HKTI
We note that in territories where discounts on
international call charges have been given to PMRS operators (e.g. U.K.), the reduced costs have been to the sole benefit of the PMRS service providers, and of no price benefit to his customers. As a result there has been no stimulation of telephone traffic, merely a boost to the PMRS provider profits. Nevertheless, we are prepared to discuss this recommendation and associated interconnect issues with Government.
Price Cap Incentive Regulation to Guarantee Real Reductions in Tariffs
We concur with the BAH recommendation for the introduction of an an RPI-X form of incentive regulation. We agree in principle with the comments in the BAH report that if the Government considers rebalancing local and international tariffs to be desirable, the most effective price cap regime should cover both domestic and international services.
We welcome the opportunity to continue our discussion and to conclude arrangements with Government on this issue.
Streamline Procedures for Introducing New Services to Ensure the Broadest and Most Modern Choice of Services for Hong Kong Consumers
Under the current approval process, new services come under the extensive scrutiny of regulatory bodies and are then presented to Legco for approval a process that often takes months, and sometimes years. While this process may have been appropriate in the past, service innovations resulting from technology advances have rendered it unworkable. As a result of this lengthy approval process, many services have been either introduced late or dropped totally, to the detriment of Hong Kong consumers.
In an effort to speed up the introduction of innovative services to Hong Kong consumers, Hong Kong Telecom supports the adoption of approval process similar to that of the U.K., which has been proven to be effective.
7
CONFIDENTIAL