Press Release issued by the Commerce, Industry and Technology Bureau (CITB) on 4 March 2005

Government to Reduce Telecom Licence Fee

The Government will reduce the annual 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.

A spokesman for the Commerce, Industry and Technology Bureau said that the cost of administering these licences has declined as a result of the increase in the number of mobile stations (calculated by reference to 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 services operators, together with the trunked radio operators, radiolocation service operators, mobile data service operators, paging companies, and mobile virtual network operators will benefit from the fee reduction.

As required by the Telecommunications Ordinance, the Government launched a public consultation exercise on reduction of licence fee for Mobile Carrier Licences on January 7, 2005. The consultation ended on 28 January 2005 and a total of 11 submissions were received. The submissions are generally supportive of the Government's proposed licence fee reduction.

To reduce the annual licence fee for mobile stations under PRS Licences and Mobile Carrier Licences, the Telecommunications (Amendment) Regulation 2005 and the Telecommunications (Carrier Licences) (Amendment) Regulation 2005 were gazetted today (March 4).

The two amendment regulations will be tabled at the Legislative Council on March 9, 2005. Subject to the approval of the Legislative Council through the negative vetting procedure, the new fees will take effect on May 1, 2005.

For mobile stations under PNETS Licences, the Telecommunications Authority will amend the licence fee payable on May 1, 2005 to implement the same reduction for these licences.

Ends/Friday, March 4, 2005