Press Release issued by the Commerce, Industry and Technology Bureau (CITB) on 7 January 2005
Government Proposes to Reduce Telecom Licence Fee

The Government proposed to reduce the annual licence fee for mobile stations under Public Radiocommunications Service (PRS) Licences, Mobile Carrier Licences, and Public Non-exclusive Telecommunications Service (PNETS) Licences from HK$20 to HK$18 per mobile station, with effect from May 1, 2005, subject to the amendment of relevant regulations.

A spokesman for the Commerce, Industry and Technology Bureau (CITB) said the reduction of licence fee for these licences for mobile services would reflect the lowered unit cost of administering these licences as a result of the increase in the number of mobile stations, i.e. the number of mobile phone subscribers, including activated prepaid SIM cards, from 6.5 million in December 2003 to 7.1 million in October 2004.

All the 2G and 3G mobile operators, together with trunked radio operators, radiolocation service operators, mobile data service operators, paging companies, and mobile virtual network operators would benefit from the proposed fee reduction.

The Government is required by the Telecommunications Ordinance to consult members of the public about the fee reduction of Mobile Carrier Licences. A consultation paper was issued today (January 7) to invite views from the telecommunications industry and the public on the proposed licence fee reduction.

Copies of the consultation paper are now available at the offices of CITB and the Office of the Telecommunications Authority (OFTA), or by downloading from the following websites: www.info.gov.hk/citb/ctb or www.ofta.gov.hk.

Representations should be sent to OFTA on 29/F, Wu Chung House, 213 Queen's Road East, Wan Chai, Hong Kong by post, by fax to 2803 5111, or by e-mail to on or before January 28, 2005.

Ends/Friday, January 7, 2005