Press Release

Large Majority Households in Hong Kong Have Choice of Alternative Fixed Network Services

According to the latest figures released by the Office of the Telecommunications Authority (OFTA) today (4 November 2007), out of the total 2.5 million households in Hong Kong, 1.98 million households and 1.36 million households are provided with at least two and three customer access networks (CANs) self-built by fixed network operators. In other words, 79% and 55% of households have a choice of at least two and three fixed carriers respectively.

"We are pleased to see the continual investment made by fixed carriers in constructing their networks. The initiative taken by the fixed carriers has enabled consumers to enjoy more choices of telecommunications services," said the OFTA's spokesperson.

"Hong Kong has been in the leading position in the world with regard to the development of telecommunications infrastructures and services. Apart from attaining satisfactory results in constructing alternative CANs, we are gratified to see the achievement of our fixed carriers in rolling out their broadband access networks. The availability of choices of quality services at affordable price to the consumers testifies the success of the facility-based competition policy which the Government has adopted in deregulating the telecommunications market," said the spokesperson.

According to a recent report published by the FTTH Councils of Asia Pacific, Europe and North America, with a household penetration of 21.2 percent, Hong Kong has overtaken South Korea and Japan as the world leader in the penetration of fibre-to-the-home and fibre-to-the-building plus local area networks.

"In the run up to end June 2008, when the mandatory Type-II interconnection policy is withdrawn, we will continue to monitor the market situation closely to ensure a smooth transition," continued the spokesperson.

Background

Type II interconnection is interconnection to the network of a fixed carrier at the customer access network (CAN) level, running from local telephone exchanges of the network to customers' premises. Such an arrangement allows a fixed carrier, who does not have its own CAN in a particular building, to provide service to customers through interconnection with the CAN of another fixed carrier.

As a result of a review of the interconnection regime, the Government announced on 6 July 2004 that the current regulation for mandatory Type II interconnection at telephone exchange level would be gradually withdrawn, on a per building basis, starting from those buildings already connected to at least two self-built CAN. The regulation will be fully withdrawn by end-June 2008, except for buildings meeting the 'essential facilities' criterion.

The report published by the FTTH Councils of Asia-Pacific, Europe and North America can be downloaded from the following URL :

(http://www.europeftthcouncil.com/documents/press_release/2007_Global_ FTTH_Penetration_Ranking_PR_-_Final.pdf)

Office of the Telecommunications Authority
4 November 2007