XN000022-1992-12-04 — Page 3

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FRIDAY, DECEMBER 4, 1992

THE AMENDING LEGISLATION WOULD ALSO REMOVE THE CURRENT SYSTEM UNDER THE TELEPHONE ORDINANCE WHEREBY THE LEGISLATIVE COUNCIL APPROVES THE MAXIMUM LEVEL OF INDIVIDUAL LOCAL TELEPHONE CHARGES.

"CONTINUATION OF THE SYSTEM OF APPROVING INDIVIDUAL CHARGES WOULD BE INCOMPATIBLE WITH THE PRICE-CAPPING SYSTEM. THIS IS BECAUSE A MAJOR AIM OF PRICE-CAPPING IS TO ALLOW THE REGULATED COMPANY A REASONABLE DEGREE OF FREEDOM TO ADJUST THE RELATIVE LEVELS OF ITS CHARGES WITHIN THE CONSTRAINT OF THE OVERALL PRICE-CAP, THE SPOKESMAN SAID.

H

THE BILLS GAZETTED TODAY ALSO INCORPORATE IMPORTANT

REQUIRED FOR THE INTRODUCTION OF LOCAL NETWORK COMPETITION,

PROVISIONS

"THEY PROVIDE THE TELECOMMUNICATIONS AUTHORITY WITH BROAD NEW POWERS TO REQUIRE INTERCONNECTION BETWEEN COMPETING NETWORKS ON FAIR TERMS, UNIVERSALLY RECOGNISED A5 AN ESSENTIAL PRE-CONDITION OF SUCCESSFUL NETWORK COMPETITION," THE SPOKESMAN SAID.

IS FOR

NUMBERING, ANOTHER KEY AREA IN PAVING THE WAY FOR COMPETITION, ADDRESSED IN THE TELEPHONE (AMENDMENT) BILL 1992, WHICH PROVIDES THE TELECOMMUNICATIONS AUTHORITY TO GIVE DIRECTIONS TO THE HONG KONG TELEPHONE COMPANY TO ENSURE THAT ITS NUMBERING PLAN PROVIDES FOR A FAIR AND EQUITABLE ALLOCATION OF NUMBERS TO ALL OPERATORS.

"FINALLY, TO PREVENT THE EMERGENCE OF MONOPOLIES OR CARTELS IN INDIVIDUAL SERVICE SECTORS, THE TELECOMMUNICATION (AMENDMENT) BILL 1992 CONTAINS ENABLING POWERS FOR THE GOVERNOR IN COUNCIL TO MAKE REGULATIONS PROVIDING FOR CROSS-OWNERSHIP RESTRICTIONS TO BE INCLUDED IN FUTURE TELECOMMUNICATIONS LICENCES.

"HONG KONG WILL SHORTLY HAVE ONE OF THE MOST OPEN AND LIBERAL TELECOMMUNICATIONS REGIMES IN THE WORLD.

"THE PROPOSED LEGISLATION GIVES GOVERNMENT THE POWERS NEEDED TO PROTECT CONSUMER INTERESTS, TO ALLOW COMPETITION TO ENTER THE MARKET ON FAIR AND EQUITABLE TERMS, AND TO PROTECT HONG KONG'S POSITION AS THE PRE-EMINENT TELECOMMUNICATION HUB IN THE ASIA-PACIFIC REGION, THE SPOKESMAN ADDED.

"

YAM EXPLAINS ROLE OF MONETARY AUTHORITY

THE

INVOLVING

THE

AND

EXECUTIVE

SAID

THE SETTING UP OF THE HONG KONG MONETARY AUTHORITY, MERGING OF THE OFFICE OF THE EXCHANGE FUND AND THE OFFICE OF COMMISSIONER OF BANKING, IS TO ENSURE A HIGH DEGREE OF CONTINUITY PROFESSIONALISM IN WHAT WE HAVE BEEN DOING, THE CHIEF (DESIGNATE) OF THE HONG KONG MONETARY AUTHORITY, MR JOSEPH YAM, TODAY (FRIDAY).

OF

ORDINANCE

IN

THE

SPEAKING AT THE ANNUAL DINNER OF THE HONG KONG ASSOCIATION BANKS, HE SAID THE PROPOSED AMENDMENTS TO THE EXCHANGE FUND WOULD GIVE THE MONETARY AUTHORITY A HIGHER DEGREE OF FLEXIBILITY ACQUIRING THE NECESSARY PROFESSIONAL SKILLS THAN THAT ACCORDED TO EXISTING TWO OFFICES NOW.

/HE SAID