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Interconnection charges by Internet service providers

The Telecommunications Authority, Mr Alexander Arena, today (Saturday) released a Statement on the requirement for Internet Service Providers to pay interconnection charges to the Hong Kong Telephone Company (HKTC).

Mr Arena said: "Having considered submissions from the Internet Service Providers (ISPs) and the fixed telecommunications network operators, and having taken legal advice, I must confirm that under the current law the ISPs must pay the interconnect charge to HKTC when the ISPs' customers access information over the World Wide Web."

This matter has been the subject of differing views in the industry, with some ISP's paying the charge and others not paying it.

"I have no alternative but to apply the existing law as it is written," said Mr Arena. "And to ensure that it is applied uniformly across the industry."

"The ISPs have made a number of submissions to me on the interconnection charge which I will consider further in a number of reviews that OFTA has been conducting on pricing and charging issues."

Details of these reviews are included in the TA's Statement. A study of the methodology and level of the interconnection charge, which is currently set at 9 cents per minute, is one of these reviews. Another review concerns the price control arrangements which apply to HKTC.

"Should these reviews lead to a change in policy regarding the PNETS charge, the Hong Kong Government will attempt to put forward new legislative proposals quickly," continued Mr Arena. "However, I cannot anticipate what these policy changes might be and, in the interim, I have no alternative but to enforce the existing law."

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