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FRIDAY, DECEMBER 4, 1992
TELECOM REVIEW LEGISLATION GAZETTED
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AMENDMENTS TO THE TELEPHONE AND TELECOMMUNICATION ORDINANCES NECESSARY FOR THE IMPLEMENTATION OF KEY ASPECTS OF THE OUTCOME OF THE TELECOMMUNICATIONS POLICY REVIEW WERE GAZETTED TODAY (FRIDAY).
THE AMENDING LEGISLATION WILL FACILITATE THE IMPLEMENTATION OF TWO KEY POLICY INITIATIVES ANNOUNCED EARLIER THIS YEAR - A PRICE- CAPPING SCHEME FOR LOCAL TELEPHONE CHARGES AND THE INTRODUCTION OF LOCAL FIXED NETWORK COMPETITION.
"TO IMPLEMENT THE PRICE-CAPPING SCHEME, WE ARE PROPOSING TO AMEND THE TELEPHONE ORDINANCE TO ENABLE THE SECRETARY FOR ECONOMIC SERVICES TO MAKE REGULATIONS GOVERNING THE MANNER IN WHICH REVISIONS TO THE COMPANY'S LOCAL TELEPHONE CHARGES MAY BE SPECIFIED BY THE TELECOMMUNICATIONS AUTHORITY, A GOVERNMENT SPOKESMAN EXPLAINED.
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AS PREVIOUSLY ANNOUNCED, THE PRICE-CAPPING SCHEME то BR PROVIDED FOR IN SUCH REGULATIONS WILL LIMIT THE ANNUAL AVERAGE INCREASE IN LOCAL TELEPHONE CHARGES TO A MAXIMUM OF 4 PER CENT BELOW THE INFLATION RATE, MEASURED BY REFERENCE TO THE CONSUMER PRICE INDEX (A).
AT THE SAME TIME AS THE PRICE-CAPPING SCHEME IS IMPLEMENTED, IDD CHARGES WILL BE REDUCED BY AN AVERAGE OF 8 PER CENT AND BY 2 CENT IN EACH OF THE FOLLOWING TWO YEARS.
PER
"FURTHER, IN ORDER TO PROTECT THE INTERESTS OF RESIDENTIAL CUSTOMERS, TWO 'SUB-CAPS' HAVE BEEN AGREED WITH THE HONG KONG TELEPHONE COMPANY THAT WILL ENSURE THAT THE REBALANCING OF CHARGES то REMOVE CURRENT CROSS-SUBSIDIES TAKES PLACE GRADUALLY AND THAT THE CHARGES FOR RESIDENTIAL TELEPHONE SERVICES ARE NOT INCREASED UNREASONABLY RAPID RATE.
AT AN
"THE SUB-CAPS WILL LIMIT INCREASES IN THE CHARGE FOR TELEPHONE LINE CONNECTION TO 4 PER CENT BELOW THE LEVEL OF INFLATION OR LESS AND INCREASES IN THE RESIDENTIAL TELEPHONE LINE RENTAL CHARGE TO THE RATE OF INFLATION OR LESS, THE SPOKESMAN ADDED.
H
AT AROUND THE CURRENT LEVEL OF INFLATION, THE SUB-CAP ON THE RENTAL CHARGE FOR A RESIDENTIAL TELEPHONE LINE WOULD RESTRICT THE HONG KONG TELEPHONE COMPANY TO A MAXIMUM INCREASE OF $5.5 PER MONTH (FROM $56 TO $61.5 PER MONTH) IN THE FIRST YEAR OF OPERATION OF THE PRICE- CAP.
THIS CHARGE HAS NOT BEEN INCREASED SINCE JANUARY 1991.
THE SUB-CAPS, LIKE THE OVERALL PRICE-CAP, WILL BE PROVIDED FOR IN REGULATIONS TO BE MADE UNDER THE PROVISIONS OF THE TELEPHONE (AMENDMENT) BILL 1992 WHICH IS GAZETTEN TODAY.
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"A DRAFT OF THE REGULATIONS HAS BEEN PREPARED IN THE ENACTMENT OF THE BILL AND THEY WOULD BE BROUGHT ONCE THE BILL IS PASSED, THE SPOKESMAN SAID.
ANTICIPATION
INTO EFFECT
/THE AMENDING