Communications, the Media and Information Technology ❘ 351
spectrum management will be used for spectrum wherever there are competing demands from providers of non-government services, unless there are overriding public policy reasons to do otherwise.
The framework will provide guidance for the TA, the statutory spectrum. manager in Hong Kong, in formulating spectrum strategy and management arrangement. Following promulgation of the framework, OFTA published the first spectrum release plan advising the telecommunications industry of the spectrum that might be made available to the market in the next three years through open bidding or tendering. This plan will be updated annually or as required to help the industry make informed investment decisions and to cater for technology and market developments.
With a dynamic market and technological developments, the distinction between fixed and mobile networks and services is becoming increasingly blurred. To ensure that the regulatory environment remains conducive to innovative technologies and converged services, the TA conducted a review on 'fixed-mobile convergence' and concluded in April 2007 to withdraw the existing asymmetrical regulatory guidance for fixed and mobile services, which assumes an approach of 'mobile party's network pays', after a two-year transitional period. Furthermore, the Authority recommended the creation of a new Unified Carrier Licence by 2008 for licensing all future carrier services fixed, mobile or fixed-mobile convergent services. A public consultation exercise on the licensing conditions for the proposed Unified Carrier Licence was launched in December 2007.
To ensure that affordable basic telephone service is provided to everyone in Hong Kong on a non-discriminatory basis, the Authority is empowered under the Telecommunications Ordinance to require one or more fixed carrier licences to have the 'universal service obligation'. The universal service provider1 will be compensated for the net cost that it has to incur for providing universal service to unprofitable customers. The net cost was shared by all external telecommunications services licensees based on their traffic volume. The Authority has reviewed this arrangement and decided that with effect from July 1, 2007, the universal service provider would not receive any compensation for areas or buildings connected by at least one alternative self-built fixed customer access network capable of providing basic telephone service. Moreover, TA also decided that with effect from May 2009, the universal service cost will be shared on the basis of the quantity of telephone numbers allocated to the licensees.
Combating Unsolicited Electronic Messages
To tackle the problem of unsolicited electronic messages, the UEM Ordinance was enacted in May 2007.
The UEM Ordinance aims to strike a right balance between the right of recipient and the development of legitimate e-marketing. It regulates all forms of commercial
1 Currently, the PCCW-HKT Limited is the sole universal service provider.
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