COMMUNICATIONS, THE MEDIA AND INFORMATION TECHNOLOGY
370
In line with the world-wide development of mobile communications, the Government issued a consultation paper on the licensing framework for third generation mobile services in March. A second consultation paper issued in October proposed a hybrid approach with an open network requirement. The hybrid approach would involve a pre-qualification exercise before spectrum auctioning. In formulating the licensing framework, the policy objectives are to promote the telecommunications industry, protecting consumers' interests and maximising the benefits to the economy as a whole. The Government aims to issue the licences in 2001.
External Telecommunications Services
Following an agreement made between the Government and the Hong Kong International Telecommunications Limited (now known as Reach Networks Hong Kong Limited), 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.
Competition in the external facilities market has also been introduced from January 1, 2000. Operators who bring in new submarine or overland cables, or use non-cable based means of transmission (primarily satellite) to provide external telecommunications facilities-based service may apply for a licence. At the end of the year, there were 16 successful applicants for cable-based external telecommunications facilities and 15 successful applicants for non-cable based external telecommunications facilities.
Satellite Communications
Two Hong Kong companies, APT Satellite Company Limited and Asia Satellite Telecommunications Company Limited (AsiaSat), hold licences under the Telecommunications Ordinance and the Outer Space Ordinance to operate and provide satellite communication services. At the end of the year, the two satellite companies were operating a total of seven satellites.
Teleport
The Government has earmarked a teleport site in Chung Hom Kok where providers of external telecommunications facilities and broadcasters can establish external links to and from Hong Kong. The site will be developed in two phases. Three sites of Phase I were awarded to successful tenderers in January and November.
Internet Access Services
Internet Service Providers (ISPs) numbered 235 by the end of the year. The number of registered customer accounts with dial-up access was 2 283 047 or 33 dial-up access accounts per 100 inhabitants.
Telecommunication (Amendment) Ordinance 2000
In June, the Legislative Council passed the Telecommunication (Amendment) Ordinance 2000. The ordinance provides for streamlining of the licensing framework to cope with the rapid development of the telecommunications industry, enhancement of the competition safeguards for the industry, improvement of interconnection and