ENG-2006 — Page 423

Communications, the Media and Information Technology 355

mobile number portability. Taking into account the findings and recommendations of the consultancy study and the feedback from stakeholders, a second consultation paper was issued in July 2006 setting out the preliminary proposals for the regulatory changes. The Government will take into consideration the responses to the two consultation exercises before making a decision on the way forward.

The Government is considering allocating spectrum for the provision of broadband wireless access (BWA) services. Apart from its ability to provide a broadband wireless connection to subscribers, thereby offering an alternative to conventional wireline connection, BWA technologies are expected to eventually embrace full mobility capabilities, enabling consumers to gain access to a wider choice of innovative services under the fixed-mobile convergence environment. Two public consultations on the licensing framework for deployment of BWA in the 3.5 GHz band were conducted in December 2004 and August 2005. Responses from the telecommunications industry indicated there would be interference between BWA services and satellite services that operate in the adjacent frequency bands. The Government is therefore exploring other suitable frequency bands for BWA applications.

Rapid advances in broadband technologies and the increasing convergence between telecommunications and broadcasting have created opportunities for telecommunications operators to offer IP television (IPTV) services. A number of fixed telecommunications network operators have entered the IPTV market and are now offering triple-play products, or telephony, broadband internet access and IPTV to their customers. With over 700 000 IPTV subscribers, Hong Kong is the most advanced IPTV market in the world.

Local Fixed Telecommunications Network Services

Businesses and consumers in Hong Kong enjoy an excellent telecommunications infrastructure. In 2006, the telephone density was

density was 95.5 exchange lines per 100 households, one of the highest in the world.

The local fixed-line market has been fully liberalised since January 2003. Under the full liberalisation policy, there is no pre-set limit on the number of licences issued, or the timing for submission of applications for licences. By year-end, there were 10 local wireline-based fixed network licensees and one local wireless-based fixed network licensee. Under the technology-neutral regime, a licensee may use any technology for service provisioning provided the technology conforms to open and non-proprietary standards and for which there is a reasonable choice of consumer equipment in the market.

After two public consultations, the Government concluded in July 2004 that mandatory Type II interconnection at telephone exchange level which helped other fixed-line operators enter the market by allowing them access to PCCW's customer access network would be fully withdrawn by June 30, 2008. This revised policy aims to encourage investment in building new infrastructure and upgrading existing infrastructure. In the long run, consumers will benefit from a greater choice of