ENG-2007 — Page 414

350 Communications, the Media and Information Technology

and mid-2009. These premises include all public libraries, public enquiry service centres, job centres, major cultural and recreational centres, community halls, large parks, government tourist attractions and government offices that are frequently visited by the public. The number of hot spots will increase to over 8 400 at more than 4 400 locations when the Government free Wi-Fi service is fully implemented in 2009.

Broadband Wireless Access

The TA conducted in May 2007 the third consultation exercise on the provision of spectrum for Broadband Wireless Access (BWA) services. After considering the views of the respondents and taking into account the decisions made by the ITU's World Radiocommunications Conference 2007, the authority concluded in December 2007 that spectrum in the 2.3GHz and 2.5GHz bands would be allocated for BWA services. It is expected that the auction of the spectrum will take place in the fourth quarter of 2008.

Internet Protocol TV

Rapid advances in broadband technologies and the increasing convergence between telecommunications and broadcasting have created opportunities for telecommunications operators to offer Internet Protocol Television (IPTV) services. A number of fixed carriers have entered the IPTV market and are now offering triple-play products, such as telephony, broadband internet access and IPTV to their customers. With close to 1 million IPTV subscribers, Hong Kong is one of the most advanced IPTV markets in the world in terms of household penetration and coverage.

Satellite Communications

Two Hong Kong companies, APT Satellite Company Limited and Asia Satellite Telecommunications Company Limited (AsiaSat), hold licences to operate and provide satellite communication services. At year-end, the two satellite companies were operating eight satellites.

Policy and Regulatory Reviews

In response to the rapid advancement in technology and dynamic market development in the telecommunications industry, the Government completed a number of policy and regulatory reviews in 2007.

After taking into consideration the views of the community and the industry, the Government promulgated the 'spectrum policy framework' in April 2007 to provide the industry with greater clarity and predictability of spectrum management decisions on one hand, and to enable the community to reap maximum benefits from the deployment of radiofrequency spectrum on the other. The framework covers six areas, namely spectrum policy objectives, guiding principle in spectrum management, spectrum rights, spectrum supply, spectrum for government services and spectrum pricing.

Under the new framework, one of the spectrum policy objectives is to strengthen Hong Kong's strategic position as a world city and the gateway between the Mainland and the world. As a guiding principle, the market-based approach in