ENG-2003 — Page 442

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COMMUNICATIONS, THE MEDIA AND INFORMATION TECHNOLOGY

Competition in the external facilities market was introduced from January 1, 2000. Operators who bring in new submarine or overland cables, or use non-cable based means of transmission (primarily satellite) to provide external telecommunications facilities-based service may apply for a licence. At year-end, there were 18 licensees. providing cable-based external telecommunications facilities and four providing non- cable based external telecommunications facilities.

Satellite Communications

Two Hong Kong companies, APT Satellite Company Limited and Asia Satellite Telecommunications Company Limited (AsiaSat), hold licences under the Telecommunications Ordinance and the Outer Space Ordinance to operate and provide satellite communication services. At year-end, the two satellite companies were operating a total of six satellites.

International Activities

Hong Kong continued to participate in the activities of international and regional telecommunications organisations. As a member of China's delegation, Hong Kong was represented in conferences and meetings convened by the ITU. Hong Kong participated in its own right in the meetings of the Asia-Pacific Telecommunity and the Telecommunications and Information Working Group of the Asia-Pacific Economic Cooperation (APEC). Hong Kong also took part in the initiative to implement the APEC Mutual Recognition Arrangement for Conformity Assessment of Telecommunications Equipment.

The work of the OFTA in the regulation of the development and operation of the telecommunications industry of Hong Kong is well recognised at the international level. The OFTA was named the 'Best Asian Regulator' of 2003 by a leading telecommunications journal in Asia, for the fifth time since 1998.

Broadcasting

Broadcasting Policy and Regulation

The broadcasting policy objective is to enhance Hong Kong's position as a regional broadcasting hub by promoting programme choice and diversity through competition and facilitating innovation and investment in the industry.

The Government opened up the television market and put in place a technology- neutral, pro-competition regulatory framework with the commencement of the Broadcasting Ordinance in mid-2000. It separated the licensing and regulation of 'carriage' and 'provision' of television programme services under the technology- neutral regime. A television programme service provider may hire operators of any transmission networks to transmit its television programme service instead of investing in transmission infrastructure itself. Such a framework facilitates entry to the television programme service market and is flexible enough to embrace new services made possible by emerging technologies and convergence.

Under the Broadcasting Ordinance, the four categories of television programme services - domestic free, domestic pay, non-domestic and other licensable television programme services that may be licensed - are regulated in accordance with the nature and pervasiveness of the services rather than the transmission mode. The former two categories of licences are issued by the Chief Executive in Council, and the latter two by the Broadcasting Authority (BA).