ENG-1995 — Page 381

COMMUNICATIONS AND THE MEDIA

Privacy Protection for Personal Data

Technological developments that facilitate the easy collection, holding, processing and transfer of vast amounts of personal data pose a special threat to the privacy of the individual. In addition, there is a growing risk that jurisdictions which already have laws providing for protection of privacy with respect to personal data will impose restrictions on transfers of personal data to jurisdictions without adequate personal data protection. Such interference in personal data transfers to Hong Kong could have adverse economic implications, particularly for the service sector.

Hong Kong strengthened legal protection for privacy with respect to personal data with the enactment of the Personal Data (Privacy) Ordinance on August 3, 1995. It is based on recommendations by the Law Reform Commission published in August 1994. It aims to protect the individual's right to privacy with respect to personal data, and to safeguard the free flow of personal data to Hong Kong. It incorporates internationally-accepted data-protection principles governing the collection, holding, processing and use of personal data, including the right of people to access and correct their own personal data.

The ordinance provides for the establishment of an independent statutory authority, the Privacy Commissioner for Personal Data, to enforce and promote compliance of its requirements. Provision has been made for the funding of the office with an annual recurrent budget of $28 million. It is hoped to establish the office in early 1996. The ordinance will then be brought into force.

Telecommunications Services

Important milestones for telecommunications in 1995 included the invitation of proposals for Personal Communications Services (PCS) and Cordless Access Services (CAS) licences in March and the issue of four new Fixed Telecommunications Network Services (FTNS) licences in June.

With more competition on fixed and mobile services, consumers were given more choice of networks and operators. It also means that services have to be provided in the most economically efficient manner in response to market developments.

1S

The implementation of the government's pro-competition and pro-consumer policy in telecommunications expressed in a position paper issued in January 1994 the responsibility of the Telecommunications Authority (TA). Supported by the Office of the Telecommunications Authority (OFTA), the TA is the regulatory body of the telecommunications sector in Hong Kong and administers the Telecommunication Ordinance and the Telephone Ordinance, which govern the establishment and operation of all telecommunications services.

Local Telephone Services

Voice telephonic services remained very popular in Hong Kong. Hong Kong had 4.2 million telephones served by more than 3.2 million exchange lines at the end of 1995. The telephone density was 68 telephones or 53 lines per 100 population highest in the world.

among the

The Hong Kong Telephone Company Limited's exclusive right to provide the local telephone service expired at the end of June 1995, and four FTNS licences were granted for the provision of telecommunications services between fixed points in Hong Kong on a competitive basis. These four companies were Hong Kong

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