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The Office of the Telecommunications Authority (OFTA) today (July 26) cautioned mobile phone operators about the implementation of recent increases in mobile phone tariffs.

"OFTA has received complaints from consumers about the raising of tariffs, particularly on low volume plans, for amounts of $8 - 10 per month. This increase in charge has been represented as passing-on a MTR, Tunnels and/or Mobile service licence fee," an OFTA spokesperson said.

"OFTA understands that these costs to the operators are not new. It is just that operators appear to have chosen this time to pass on some of the costs of doing business to their customers."

While OFTA has not found any evidence that the new charge, as a tariff increase, is in breach of any telecommunications law or licence conditions, OFTA has today written to all mobile phone operators cautioning them that how they pass on the tariff increases would be subjected to regulatory scrutiny and reminding operators of their obligations under the Telecommunications Ordinance, licence conditions and contract law.

"OFTA last year received fresh powers in respect of misleading and deceptive conduct and the Telecommunications Authority will not hesitate to use these powers if operators fail to adhere to the law," the spokesperson said.

OFTA warned operators against using exceedingly fine print in contracts or failing to state the full cash price when advertising telecommunications products or services. Holding out a service as being offered at a certain price when in fact the consumers must pay many other miscellaneous charges before receiving the service may constitute misleading practices.

"The recently introduced SIM card charges will also be examined by OFTA based on the same principles," the spokesperson continued.

"We recognise the highly competitive market environment in mobile phone services and that Hong Kong consumers pay some of the cheapest prices in the region. However in matching competitors prices it is important that operators are transparent and treat customers fairly," the spokesperson said

OFTA said operators should give at least 30 days prior notice to customers when increasing prices. The spokesperson also said operators should also provide clear and transparent information in their promotional materials to enable consumers to easily and accurately assess the terms and conditions of the mobile phone services on offer.

End/Thursday, July 26, 2001

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