Press Releases of February 1999
	Mobile Number Portability to be Implemented from 1 March 1999
	Telecommunications Authority Issues Direction Requiring Hong Kong Telecom to Stop Unauthorised Discounts to Customers and Imposes a Financial Penalty

The Office of the Telecommunications Authority (OFTA) announces today (23 February 1999) that Mobile Number Portability (MNP) will be available from 1 March 1999.

Since the middle of January 1999, all fixed and mobile network operators have been carrying out tests for the implementation of MNP. The tests results have been found satisfactory and MNP will be introduced from 1 March 1999 as scheduled.

With MNP, customers of mobile telephone services may retain their mobile telephone numbers if they change to another mobile network.
This would remove the last major obstacle to the freedom of choice by consumers and would promote fair and effective competition in the market.

A customer who wishes to change to another mobile network and retain the existing mobile telephone number need only to complete a simple application form in the sales outlet of the new network operator chosen by the customer. The new operator will handle the porting of the number with the existing operator providing service to the customer.

The customer does not need to approach the existing network operator to apply for the porting of the mobile telephone number. The customer will need to settle any outstanding account with the previous network operator or to recover any deposit from the operator in accordance with the contract terms.

Normally, a "cutover" can take place within one to two days. However, since there is a technical limitation on the systems of the operators, an initial limit of 5,000 cutovers per day has been adopted to ensure satisfactory implementation of the scheme.

It is possible that on the initial launch of the MNP, there may be many people wishing to change networks. If the number of cutover exceeds the daily 5,000 capacity limit, the cutover will be automatically deferred to the next earliest available timeslot and the new network operator will advise the customer of the cutover timeslot. Until the cutover timeslot, the customer may continue to use the service of the existing network operator.

Once implemented, the MNP will continue to be available in future after 1 March 1999. There is therefore no need to rush for the MNP service on 1 March 1999. Consumers should take their time to shop around before deciding on which network that best fits their requirements.

The existing network operator may not charge the customer a fee for porting the telephone numbers out of the network. The new network operator may charge a fee, but this will be subject to commercial consideration of the new operator.

All telephone numbers associated with the mobile services, including the main handset number, pre-paid SIM card number, and numbers for the voice mail services and short message services may be ported.

OFTA has prepared a consumer information leaflet to provide the customers with basic information and hints about the MNP. The leaflet is freely available for collection at the sales outlets and shops of all six mobile network operators, Government District Offices, offices of the Consumer Council and OFTA. It can also be downloaded from OFTA's Internet home page at www.ofta.gov.hk. It would be advisable for customers to approach directly their mobile network operators for any doubts about the MNP services provided by them. However, OFTA will maintain a telephone hotline 2961 6333 for the public to dial in to get help if they have any questions about the MNP services provided by operators.

Office of the Telecommunications Authority
23 February 1999

The Telecommunications Authority (TA), Mr Anthony WONG Sik-kei, today (12 February 1999) issued a direction under section 36B of the Telecommunication Ordinance requiring Hong Kong Telecom to stop giving unauthorised discounts for its International Direct Dialled (IDD) services through a scheme for Joint Marketing Activities. The TA also imposed a financial penalty of HK$50,000 on Hong Kong Telecom for breach of the directions issued in April 1998 and June 1998.

As the dominant operator in the provision of IDD services, Hong Kong Telecom is prohibited under conditions of its licence to offer discounts from the prices approved by the TA unless consent in writing is received from the TA. The directions of April 1998 and June 1998 required Hong Kong Telecom to comply with this licence condition and refrain from giving any unauthorised discounts or in any manner require its customers to pay effectively less than the approved prices for IDD services.

After investigation of complaints, the TA has found that Hong Kong Telecom has effectively offered unauthorised discounts to a number of its corporate customers in the form of payments under the "Joint Marketing Activities" conducted by the corporate customers for Hong Kong Telecom.

Mr Wong, in issuing the direction said: "I am saddened by the fact that only eight months after I issued the second direction to Hong Kong Telecom about unauthorised discounts, I have to deal with the same issue again. It is unacceptable that this company has failed to abide by its licence conditions time and time again."

"As a result of a combination of complaints I received and pro-active investigations into generic practices, I discovered a serious breach of licence obligations. I have dealt with the breach by giving a direction to the company to stop giving customers discounts as a percentage of their international call spending for services described as joint marketing activities. I have also imposed a fine of HK$50,000, being the maximum that the law allows me to impose on this occasion, for breaching a previously issued direction for the second time," continued Mr Wong.

"I recognise that the amount is not adequate. This case is a good example why we need to amend the Telecommunication Ordinance to bring it into line with the current highly competitive market environment and to allow us to deal adequately with the crucial issues that this very fast moving industry is facing. I have also considered the more severe penalty of suspending the company's licence but this would cause too much disruption to all the customers of Hong Kong Telecom. I have therefore also proposed in the legislative amendment to allow the TA to suspend a service under a licence in case of a blatant breach."

"The direction I have issued today does not only deal with the past. It also looks at the future. I have required Hong Kong Telecom to set up a solid compliance system within the company to reduce the risk of further breaches of the law or licence conditions as a result of insufficient management oversight. HKT has to set up systems and controls to ensure that it complies with its obligations before it can enter into any new agreement for Joint Marketing Activities. I have also required Hong Kong Telecom to publish its compliance plan so that the industry can also monitor it in a transparent manner."

"I am not trying to stifle innovative marketing practices but I will not tolerate actions that breach the law or licence obligations. I will use the powers that are available to me to ensure that telecommunications players compete fairly in the market place. I hope that Hong Kong Telecom will work hard to set its house in order so that these problems do not recur," said Mr Wong.

The full text of the TA's direction and notice to pay financial penalty can be downloaded from OFTA's website at http://www.ofta.gov.hk.

Office of the Telecommunications Authority
12 February 1999