COMMUNICATIONS, THE MEDIA AND INFORMATION TECHNOLOGY
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based FTNS networks and would announce the result of the licensing exercise in early 2000. In addition, the existing subscription television licensee (Hong Kong Cable Television Limited (HKCTV)) has also applied for a FTNS licence to offer telecommunications services over its hybrid fibre coaxial network.
Broadband Services
By the end of the year, about 80 per cent of the households and virtually all commercial buildings were covered by the broadband network. To enable the public to enjoy the most advanced broadband services at affordable prices, the Government is formulating the policies on interconnection of broadband networks. The OFTA issued a public consultation paper on the broadband network interconnection on November 3.
Public Mobile Phone Service
The market for public mobile phone services has been highly competitive in Hong Kong. By the end of the year, six enterprises were operating a total of 11 digital systems, serving a customer base of over 3.8 million. This represented an annual growth rate of 32 per cent. The penetration rate of public mobile phone services was about 54 per cent, one of the highest in the world.
Mobile Number Portability was implemented on March 1, enabling customers of public mobile phone services to retain their mobile phone numbers when they changed the mobile networks to which they subscribed. This removed the final significant barrier to freedom of consumer choice and effective competition in the market for mobile phone services. Over 733 102 numbers were successfully 'ported' by the end of the year.
External Telecommunications Services
Following an agreement made between the Government and CWHKT, the latter surrendered its exclusive licence for external telecommunications services in March 1998, eight years ahead of its expiry in 2006. This resulted in competition in the external telecommunications services market from January 1, 1999.
The three new FTNS licences were allowed to provide external telecommunications services and facilities from that date. Following the 1998 Review of Fixed Telecommunications, the Government decided that licences for operation of external telecommunications services would be issued freely to meet market demand. By the end of the year, 148 licences had been issued for the provision of external telecommunications service. It is estimated that in that year, consumers saved some $2.5 billion for external calls due to the keen competition between operators.
To progressively liberalise the external telecommunications facilities market, the Government announced on May 5 that licences would be issued for the operation from January 1, 2000 of external telecommunications facilities that use non-cable based means of transmission (primarily satellite), or that are based on new submarine or overland cables landing in Hong Kong. The Government invited applications on July 15 for these licences and would announce the result of the licensing exercise in early 2000.