ENG-2001 — Page 450

COMMUNICATIONS, THE MEDIA AND INFORMATION TECHNOLOGY

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expertise and to unleash creative synergy. Many new economic activities and job opportunities will be generated in the international IT centre to be developed in the Cyberport.

Telecommunications

The Government's telecommunications policy aims to facilitate the development of the telecommunications industry and enhance Hong Kong's position as a regional 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 continued to implement the policy and opened to competition all sectors of the telecommunications market - local and external, services-based and facilities-based. To press on with its commitment, the Government expected to announce in January 2002 the implementation details to fully liberalise the local fixed telecommunications network services (FTNS) market from January 1, 2003.

In line with the world-wide development in mobile communications, the Government issued four third generation mobile services (3G) licences in October. This will enable Hong Kong to enjoy cutting-edge third generation mobile services on a par with other advanced economies.

Local Fixed Telecommunications Network Services

Businesses and consumers in Hong Kong enjoy an excellent telecommunications infrastructure. Hong Kong had 4.9 million telephones served by more than 3.9 million exchange lines at the end of the year. The telephone density was 73 telephones or 58 exchange lines per 100 population one of the highest in the world. Also serving Hong Kong's needs in data communications were more than 411 000 dedicated facsimile lines.

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Further to the licensing exercise in early 2000, there are now altogether 10 local FTNS operators, all of which are capable of providing broadband networks and services. They include four local wireline-based FTNS operators, five local wireless- based FTNS operators, and the Hong Kong Cable Television Limited which provides telecommunications services over its hybrid fibre coaxial network. To further liberalise the market, the Government issued in October a consultation paper on the implementation issues of full liberalisation of the local fixed network market after the end of 2002 when the moratorium for licensing additional wireline-based local fixed network would expire. After considering the views received, the Government expected to announce the implementation details in January 2002. Under the full liberalisation policy, there would not be any pre-set limit on the number of licences to be issued, nor on timing for applications. There would also be no requirement on performance bond or capital expenditure. Applications for new local wireline-based FTNS licences for operation from January 1, 2003 were to be invited starting from January 2002.

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