ENG-2008 — Page 425

Communications, the Media and Information Technology | 349

The Telecommunications Authority (TA) is appointed by the Chief Executive to perform functions and exercise powers under the Telecommunications Ordinance and the Unsolicited Electronic Messages Ordinance ('the UEM Ordinance'). The Office of the Telecommunications Authority (OFTA) is the executive arm of the TA. It oversees the regulation of the telecommunications industry in Hong Kong, advises the Government on telecommunications matters, and enforces the relevant provisions set out under the abovementioned ordinances.

Hong Kong's telecommunications market is fully liberalised and highly competitive. The Telecommunications Ordinance includes sector-specific pro- competition provisions to

fair and effective competition in the

telecommunications market.

Broadband Wireless Access Services

Broadband Wireless Access (BWA) refers to next generation of wireless communications technologies providing vastly improved high-speed data services. The technologies can be used to provide both fixed and mobile broadband access services, and may also be used as wireless backhaul for fixed or mobile networks.

After considering the views of the industry and decisions made by the ITU's World Radiocommunications Conference 2007, the TA announced in December 2007 that spectrum in the 2.3GHz and 2.5GHz bands would be assigned to the industry through an auction for the provision of BWA services. In October 2008 the TA published the Information Memorandum setting out the terms and conditions of the auction as well as the licence conditions to be imposed upon BWA service providers. In December, five applications for bidding were received and the auction. was scheduled for January 2009.

Internet Protocol TV Services

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 and quadruple products, such as fixed and mobile telephony services, broadband internet access and IPTV to their customers. With over one million subscribers, Hong Kong is at the forefront in terms of IPTV household penetration and coverage.

Broadband Internet Access Services

During the year, the number of wireline-based broadband internet access accounts increased to 1.95 million, which represented a household penetration rate of 77.7 per cent and population penetration rate of 27.8 per cent. According to the reports issued by the International Telecommunication Union (ITU), Hong Kong ranked second in Asia in 2007 in terms of broadband population penetration.

Local operators have been rolling out broadband facilities providing high bandwidth services to customers. According to a recent report of the Fibre-to-the- Home Councils of the Asia-Pacific, Europe and North America, Hong Kong is a world