COMMUNICATIONS, THE MEDIA AND INFORMATION TECHNOLOGY
In October 2001, the Government issued four 3G licences under an innovative royalty scheme. The Government also spearheaded the introduction of an open network access requirement whereby 3G network operators are required to make available 30 per cent of network capacity for interconnection to, or access by, non- affiliated Mobile Virtual Network Operators and/or content providers on a non- discriminatory basis. This would ensure competition at both the network and service application levels.
External Telecommunications Services
Competition in the external telecommunications services market was introduced from January 1, 1999. Competition in the market has led to a significant drop in International Direct Dialling (IDD) call rates. Consumer savings for the three years. from 1999 to 2001 amounted to an estimated $17.5 billion.
Competition in the external facilities market was 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 year-end, there were 18 licensees providing cable-based external telecommunications facilities and five providing non- cable based external telecommunications facilities.
The Government has liberalised the external facilities market from early 2000. As from January 1, 2003, operators may obtain external facilities licences by means of acquiring capacity through the purchase of Indefeasible Rights of Use (IRUs) of submarine or overland cables. In addition, existing operators of external facilities may apply for modifications of their licences to extend their scope of services to operate backhaul facilities from January 1, 2003 onward. The TA invited applications for licences in January 2002, and a new licence was issued in January 2003.
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 year-end, the two satellite companies. were operating a total of six satellites.
International Activities
Hong Kong continued to participate in the activities of international and regional telecommunications organisations. As a member of the China delegation, Hong Kong was represented in conferences and meetings convened by the International Telecommunication Union (ITU). Hong Kong participated in its own right in the meetings of the Asia-Pacific Telecommunity and the Telecommunications and Information Working Group of the Asia-Pacific Economic Cooperation (APEC). Hong Kong also took part in the initiative to implement the APEC Mutual Recognition Arrangement for Conformity Assessment of Telecommunications Equipment.
The work of the OFTA in the regulation of the development and operation of the telecommunications industry of Hong Kong is well recognised at the international level. The OFTA was voted the 'Best Asian Regulator' of 2002 by readers of a leading telecommunications journal in Asia, for the fourth time since 1998.
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