Press Releases of January 2003
   
* New Order to promote use of telecommunications apparatus - issued by the Commerce, Industry and Technology Bureau
* The Telecommunications Authority will create the Class Licence for the Provision of Public Wireless Local Area Network Services




17 January 2003
The Telecommunications Authority will create the Class Licence for the Provision of Public Wireless Local Area Network Services

The Telecommunications Authority (TA) issued today (17 January 2003) a statement announcing his decision to create the Class Licence for the provision of Public Wireless Local Area Network (LAN) Services.

Wireless LAN is becoming popular nowadays, providing convenience to consumers in access to public telecommunications networks without the encumbrance of a wire connected to a wall socket. It enables users with portable equipment like notebook computers and personal digital assistant devices within the coverage areas of the LAN to gain access through wireless means to a public telecommunications network for voice and data communications such as surfing the Internet or sending/receiving electronic mail.

"The creation of the Class Licence will provide a streamlined licensing regime for operators to run public wireless LAN services without the need for individual licence application or approval. This will facilitate the business operation of public wireless LAN services, and enhance Hong Kong's position as the telecommunications hub in the region," a spokesperson of the Office of the Telecommunications Authority (OFTA) said.

Under the Class Licence, a person may use wireless LAN equipment operating within the frequency bands of 2400 - 2483.5 MHz, 5150 - 5350 MHz and 5725 - 5850 MHz (which have been widely designated for establishing wireless LAN) and meeting certain technical specifications on emission power levels to provide a public wireless LAN service. The public wireless LAN service includes the provision of radio access to, and resale of, other licensed telecommunications services to customers within the coverage area of the radio device.

"We believe the industry will welcome the opening of a new frequency band in 5150 - 5350 MHz for establishing wireless LAN services. This will allow use of IEEE 802.11a type of wireless LAN applications," the spokesperson elaborated.

Any person who intends to operate a public wireless LAN service is only required to register with the TA before commencing operation. No application and processing procedures will be involved, unlike individual licences. No licence fee will be levied either.

Under the Class Licence, the licensee needs to meet specified minimum technical conditions like avoidance of interference. Same as the other public telecommunications services providers, they are subject to the provisions of the Telecommunications Ordinance such as the prohibition of anti-competitive behaviour and misleading advertisement and conduct.

The Class Licence only applies to operators of public wireless LAN services, but not end users for private use. End users may use the same frequency bands without licensing and are subject to the same technical conditions in establishing their own private wireless LANs. The exemption for licensing is provided for in the Telecommunications (Telecommunications Apparatus) (Exemption from Licensing) Order which the Government has gazetted today. Unlike the public service providers, private users of wireless LAN are not subject to conditions aimed at regulating the behaviour of service operators with a view to protecting consumer interests.

"It is government's objective to facilitate the development of new means of telecommunications services such as the increasingly popular wireless LAN services. For operators of public wireless LAN service, we aim to provide a business-friendly environment and at the same time protect the interests of consumers and business at large," the spokesperson of OFTA said.

"We expect to see wireless LAN flourishing not only in shopping arcades or Internet cafes, but also wider applications at home, at university campus and in corporate environment including small and medium enterprises. Public wireless LAN services will complement the wide area mobile services such as the 3G services," the spokesperson concluded.

The Class Licence will become effective at the same time as the exemption order which is subject to the vetting of the Legislative Council. The effective date will be separately announced by OFTA. The Class Licence is the result of a consultation during 2 August - 15 September 2002 with 14 submissions received. Interested parties may download a copy of the Legislative Council Brief on Telecommunications (Telecommunications Apparatus) (Exemption from Licensing) Order as well as the TA statement on the Class Licence and a copy of the Class Licence from OFTA's website at www.ofta.gov.hk.

Office of the Telecommunications Authority
17 January 2003