ENG-2000 — Page 429

COMMUNICATIONS, THE MEDIA AND INFORMATION TECHNOLOGY

Telecommunications

The Government's telecommunications policy aims to facilitate the development of the telecommunications industry and enhance Hong Kong's position as a telecommunications hub.

Supported by the Office of the Telecommunications Authority (OFTA), the Telecommunications Authority (TA) oversees the regulation of the telecommunications industry in Hong Kong and administers the ordinances. governing the establishment and operation of telecommunications services.

Following the announcement of its progressive liberalisation policy in May 1999, the Government has made big strides in implementing the policy and opened to competition all sectors of the telecommunications market, local and external, services-based and facilities-based. The Government has also embarked on setting up the regulatory and licensing framework for third generation mobile services, with a view to maintaining Hong Kong's leading position in mobile communications in the region.

Local Fixed Telecommunications Network Services

Businesses and consumers in Hong Kong enjoy an excellent telecommunications infrastructure. Hong Kong had five million telephones served by more than 3.95 million exchange lines at the end of the year. The telephone density was 73 telephones or 57.5 exchange lines per 100 population one of the highest in the world. Also serving Hong Kong's needs in data communications were more than 404 037 dedicated facsimile lines.

The Government has also introduced further competition to the local fixed telecommunications market by licensing five local wireless-based Fixed Telecommunications Network Services (FTNS) operators, and the Hong Kong Cable Television Limited to provide telecommunications services over its hybrid fibre coaxial network in early 2000. There are now 10 local FTNS operators, all of which provide broadband networks and services.

Broadband Services

By the end of the year, about 98 per cent of the households and virtually all commercial buildings were covered by the broadband network. The OFTA conducted two consultations in November 1999 and June 2000 on interconnection of broadband networks. A statement stipulating the regulatory framework for broadband interconnection was issued in November. The regulatory framework promotes effective competition and consumer choice at affordable prices, maintains a fair and competitive market environment, and promotes investment in broadband infrastructure underpinning the service sector.

Public Mobile Phone Service

The market for public mobile phone services is highly competitive in Hong Kong. By the end of the year, six operators were operating a total of 11 digital systems, serving a customer base of over 5.2 million. This represented an annual growth rate of 31 per cent. The penetration rate of public mobile phone services was about 76 per cent, one of the highest in the world.

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