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The Office of the Telecommunications Authority (OFTA) has received a number of complaints from Fixed Telecommunications Network Service (FTNS) operators that PCCW-HKT Telephone Limited (PCCW), as the dominant operator in the local telephone market, had not been providing an efficient service in the interconnection of local loops to other FTNS operators. Such interconnection is essential in facilitating competition in the local telephone market.

OFTA conducted a series of investigations on the current procedure adopted by PCCW in the interconnection of local loops to the new FTNS operators. Having considered the representations made by PCCW and the new FTNS operators and having inspected locations where interconnection took place, the Telecommunications Authority, Mr Anthony Wong, is of the view that it is vital that PCCW should improve its productivity on the interconnection of local loops.

"This type of interconnection is necessary and must be provided efficiently by PCCW so that the Government policy on introduction of competition in the local telephone market could be implemented effectively," Mr Wong said.

"The new operators have made representations to me that the limit imposed by PCCW of nine local loops per two-hour window is too restrictive. OFTA has examined in detail the technical constraints in improving this productivity rate," he added.

"After a series of discussions and exchanges with PCCW, the company has agreed to improve its productivity by deploying more resources and streamlining its process. PCCW agrees to increase the number of local loop interconnections from nine per two-hour window per operator per exchange to a maximum of 16, depending on the technical constraints in the telephone exchange concerned."

"I am glad that PCCW has voluntarily offered to improve its productivity. I have accepted PCCW's proposal and shall observe closely how this operates for six months. During these six months, I shall examine the demand from the new operators and whether this improved productivity will meet the demand," Mr Wong continued.

"I shall review the adequacy of the improved productivity at the end of the six-month trial period, and I would not rule out requiring PCCW to make further improvement if the demand justifies it."

The trial period will commence from January 1, 2002.

End/Friday, November 9, 2001

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