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As the new FTNS licence contains comprehensive provisions for the regulation of competitive fixed network services by the Telecommunications Authority, most of the provisions in the Telephone Ordinance will no longer be required and can be repealed. However, two provisions in the Ordinance will need to be retained. These are Sections 22A and 24 which regulate the telephone numbering system and the price cap arrangement which currently applies to the Hong Kong Telephone Company. The powers provided under these Sections cannot be replicated in the FTNS licence and will therefore need to be retained in the Ordinance, but they will be amended and strengthened to take into account of the new competitive environment.
Clause 3 of the Bill amends Section 22A of the Telephone Ordinance by replacing the current definition of telephone numbering plan, which at present only refers to the numbering plan used by Hong Kong Telephone, by a more general definition embodying the numbering plans used by all FTNS licensees. To ensure that the Telecommunications Authority has the necessary power to regulate the fair and effective use of the telephone numbering plan by the competing networks, his role and responsibility to manage Hong Kong's telephone numbering plan will be specified in the Ordinance. Also, in view of the appeal of special telephone numbers to the public, especially those with so call lucky digits, it is necessary to provide an open and transparent system for the allocation of such numbers. It is proposed that the Secretary for Economic Services be given power to provide for the allocation of special telephone numbers by way of auction or tender. The arrangement will be similar to that for the allocation of special car registration numbers. The amendment only seeks to include an empowering provision in the principal Ordinance. The detailed arrangements for the auction will be set out in regulations and Members will have an opportunity to consider them in due course.
Clause 4 of the Bill amends Section 24 of the Telephone Ordinance to retain the power of the Secretary for Economic Services to specify a price control arrangement for certain basic telephone services provided by the Hong Kong Telephone Company, such as line connection fees and residential and business line rental charges. It is Government's intention that Hong Kong Telephone's charges for basic telephone services will continue to be subject to a price cap as long as the company remains the dominant provider of such services. The power of the Secretary for Economic Services to regulate other "non-basic" services provided by the company will be removed. The charges of these services will be subject to market competition and regulated by the Telecommunications Authority under the FTNS licence.