Press Release
OFTA Updated the List of Buildings Connected by at least Two Self-built Customer Access Networks

The Office of the Telecommunications Authority (OFTA) today (31 March 2005) published the updated list of the buildings that are connected by at least two self-built customer access networks of local fixed telecommunications network services (FTNS) operators. It is the first time for buildings accessed by the self-built customer access network of Hong Kong Cable Television Limited (HKCTV) to be included in the building list.

"We are pleased to see that, after the announcement of the new Type II interconnection policy in July 2004, the fixed network operators are actively rolling out their self-built customer access networks to provide choices and services to the end customers. In addition to PCCW-HKT Telephone Limited, the five fixed-line operators, including Hong Kong Broadband Network Limited (HKBN), Hong Kong Cable Television Limited (HKCTV), Hutchison Global Communications Limited (HGC), New World Telecommunications Limited (NWT) and Wharf T&T Limited (WT&T), have together achieved a household coverage of 69%, compared to the figure of 60% published in September 2004.

"Out of this 69% of coverage, 41% of the households (a total of 2,405 residential buildings) have a choice of at least three customer access networks and 28% of the households (a total of 4,025 residential buildings) have a choice of two customer access networks," the spokesperson of OFTA said.

With the launch of broadband IP conveyance service as well as voice-over-IP conveyance service by HKCTV in October 2004, OFTA is satisfied that part of HKCTV's self-built customer access network can provide both voice and broadband services, and is also able to meet the open platform criterion. OFTA also confirms that part of HKCTV's self-built customer access network could meet the transmission capacity criterion.

"Having met all three objective criteria to qualify as an alternative customer access network, part of HKCTV's network is included in the building list for the first time," the spokesperson of OFTA explained.

Mandatory Type II interconnection will be withdrawn in the buildings included in the building list after a two-year transitional period and a one-year "grandfather" period, starting from the published date of the buildings.

The building list was first published on 24 September 2004 and is to be updated on a half-yearly basis to cover buildings that are newly connected by alternative self-built customer access networks. Next round of update will be published in September 2005.

The latest building list can be downloaded from OFTA's website at: www.ofta.gov.hk.

Background

Type II interconnection is interconnection of the network of a fixed telecommunications operator to the network of another fixed telecommunications operator at the customer access level, which runs from local telephone exchanges of the network to customers' premises.

The Government announced on 6 July 2004 that Type II interconnection at telephone exchange level will be withdrawn to promote investment and consumer choice in high bandwidth customer access networks. The withdrawal will be fully implemented across the territory by 30 June 2008, except for buildings meeting the "essential facilities" criterion. In the run-up to this date, the withdrawal will be implemented in an orderly manner on a building-by-building basis and will apply to buildings already connected to at least two self-built customer access networks.

Office of the Telecommunications Authority
31 March 2005