Press Release Issued by Commerce, Industry and Technology
Bureau (CITB) on May 23, 2003 :
Consultation on Type II interconnection
in telecommunications begins
The Government today 23 May, Friday, issued
a consultation paper to consult the community on the review of
the policy and regulatory regime for Type II interconnection
in telecommunications.
A spokesman for the Commerce, Industry and Technology Bureau
said, "The review is one of the bureau's major tasks for
2003. In view of the rapidly changing market landscape, the advent
of new technologies as well as the fact that more than seven
years have passed since the liberalization of the local fixed
telecommunications market and the implementation of the narrowband
interconnection, we believe it is very timely for the Government
to conduct an overall policy review on Type II interconnection."
Type II interconnection refers to interconnection at the customer
access network level so that operators without such networks
can also provide services to customers through the networks of
other operators. The Telecommunications Authority first implemented
the interconnection policy in 1995 with a view to promoting the
telecommunications industry, encouraging investment in network,
and facilitating effective competition in the telecommunications
market and enhancing consumer choice.
The review will examine whether the policy on Type II interconnection
remains relevant and necessary to facilitate effective competition
and promote investment in the telecommunications market.
The issues to be looked at include whether Type II interconnection
should continue and if so, in what way, taking into account factors
such as the nature of services (narrowband and broadband); technologies
adopted (copper wires and fibres); and points at which interconnection
is to be made (at telephone exchanges or at individual buildings).
The review will also consider whether the existing charging
principles adopted for interconnection continue to be appropriate.
"The availability or otherwise of, and the arrangements
for, Type II interconnection have major implications on service
provision by operators, benefits to consumers, incentive to operators
to invest in facilities, and competitiveness of our telecommunications
infrastructure.
The review on the future arrangements for Type II interconnection
will have impact at all levels of public policy considerations,
from the evolution of the Government's policy objectives on telecommunications,
the shaping of the future structure and development of the industry
to the regulatory regime. The Government would therefore like
to invite views from the industry and the public on the review," the
spokesman said.
"We would conduct the review with an open mind. We will
consider the submissions to the consultation paper issued today.
If necessary, we may conduct a further round of consultation
later before concluding the review," the spokesman continued.
The consultation on the paper issued today will last for three
months. Interested parties are invited to submit their views
supported by market data and economic analysis on the issues
raised in the consultation paper to the Office of the Telecommunications
Authority (OFTA) on or before August 22, 2003. The consultation
paper can be downloaded from the websites of the Information
Technology and Broadcasting Branch, Commerce, Industry and Technology
Bureau (www.info.gov.hk/citb/ctb)
and OFTA (www.ofta.gov.hk).
End/May 23, 2003
Press Release Issued by Commerce, Industry and Technology
Bureau (CITB) on May 23, 2003 :
Licence fee reduction proposal gazetted
The Telecommunications (Carrier Licences) (Amendment) Regulation
2003, which proposes to reduce the annual licence fee for fixed
carrier licences which permit external telecommunications services
only by half from HK$1 million to HK$0.5 million, was published in
the Gazette today (May 23).
A spokesman for the Commerce, Industry and Technology said, "The
administration of such licences has been progressively simplified
after the liberalisation of the relevant market in early 2000.
The Government therefore considers it appropriate to reduce the
annual licence fee.
The Government conducted a public consultation exercise from
April 17 to May 9 this year on the proposed reduction of the
licence fee. A total of 13 submissions, comprising seven from
external services operators and six from other telecommunications
operators, were received.
"All the fixed carrier licensees operating external telecommunications
services expressed support to the proposal.
"The licence fee reduction will bring down the operational
cost of the licensees investing in cables and satellites. This
will help maintain our competitiveness as a telecommunications
hub in Asia," the spokesman said.
The Regulation will be tabled at the Legislative Council for
negative vetting on May 28, 2003.
End/May 23, 2003
19 May 2003
Billing and Metering Integrity Scheme
Launched to
Facilitate Informed Choices by Consumers
The Office of the Telecommunications Authority (OFTA) today
(19 May 2003) announced that the compliance status of the telecommunications
operators with the Billing and Metering Integrity Scheme (BMIS)
had been published on OFTA's website (www.ofta.gov.hk)
for public information. Consumers may check out the information
which will facilitate making informed choices for telecommunications
services.
"Launched since 1 January 2003, the BMIS is a set of testing
criteria and quality assurance procedures based on relevant international
standards for the operators to self-check the accuracy in measuring
telephone call duration and subsequent billing of the calls made.
The Scheme ensures that the number of inaccurately metered calls
shall not exceed 0.01% of total calls and the error of billed
amount shall not exceed 0.01% of the total billed amount in a
single bill. All licensed fixed and mobile network operators
are required to comply with the scheme, while service providers
for dial-up Internet services, external telecommunications services
and international value-added services may join the scheme on
a voluntary basis.
"Joining the scheme means an operator has followed the
criteria to routinely check their internal process to ensure
billing and metering accuracy. It is expected that the implementation
of the scheme will help boost consumers' confidence in the billing
and metering systems of the joining operators," a spokesperson
of the OFTA said.
"According to the scheme, all joining operators are required
to declare their compliance status to OFTA on a quarterly basis.
To be compliant, operators must meet prescribed technical standards
and follow specified procedures. An annual auditor's report should
also be submitted to OFTA to certify that they are in compliance
with the BMIS," the spokesperson explained.
"Updated compliance status will be published on the website
of OFTA for public information. In order to gain confidence on
the accuracy of billing and metering systems of the services
subscribed to, it is advisable for consumers to check out the
information and take the compliance status into account before
choosing a service provider," the spokesperson added.
"We also like to encourage more providers for dial-up
Internet services, external telecommunications services and international
value-added services to join the scheme. Their collaborative
efforts are indispensable for further enhancing the overall service
quality of the industry," the spokesperson said.
However, the spokesperson emphasized that, although the above
operators had been allowed to follow the BMIS on a voluntary
basis, they still have to fulfill the obligations under the Telecommunications
Ordinance and licence conditions in relation to metering and
billing accuracy.
The first phase of BMIS covers licensed public telecommunications
operators offering time and usage services, such as International
Direct Dial (IDD) service and mobile services utilizing the public
switched telephone networks.
Office of the Telecommunications Authority
19 May 2003
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