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The Government today (May 23) issued a consultation paper to consult the community on the review of the policy and regulatory regime for Type II interconnection in telecommunications.

A spokesman for the Commerce, Industry and Technology Bureau (CITB) said: "The review is one of the bureau's major tasks for 2003. In view of the rapidly changing market landscape, the advent of new technologies as well as the fact that more than seven years have passed since the liberalisation of the local fixed telecommunications market and the implementation of the narrowband interconnection, we believe it is very timely for the Government to conduct an overall policy review on Type II interconnection."

Type II interconnection refers to interconnection at the customer access network level so that operators without such networks can also provide services to customers through the networks of other operators. The Telecommunications Authority first implemented the interconnection policy in 1995 with a view to promoting the telecommunications industry, encouraging investment in network, and facilitating effective competition in the telecommunications market and enhancing consumer choice.

The review will examine whether the policy on Type II interconnection remains relevant and necessary to facilitate effective competition and promote investment in the telecommunications market.

The issues to be looked at include whether Type II interconnection should continue and if so, in what way, taking into account factors such as the nature of services (narrowband and broadband); technologies adopted (copper wires and fibres); and points at which interconnection is to be made (at telephone exchanges or at individual buildings).

The review will also consider whether the existing charging principles adopted for interconnection continue to be appropriate.

"The availability or otherwise of, and the arrangements for, Type II interconnection have major implications on service provision by operators, benefits to consumers, incentive to operators to invest in facilities, and competitiveness of our telecommunications infrastructure.

"The review on the future arrangements for Type II interconnection will have impact at all levels of public policy considerations, from the evolution of the Government's policy objectives on telecommunications, the shaping of the future structure and development of the industry to the regulatory regime. The Government would therefore like to invite views from the industry and the public on the review.

"We would conduct the review with an open mind. We will consider the submissions to the consultation paper issued today. If necessary, we may conduct a further round of consultation later before concluding the review," the spokesman said.

The consultation on the paper issued today will last for three months. Interested parties are invited to submit their views supported by market data and economic analysis on the issues raised in the consultation paper to the Office of the Telecommunications Authority (OFTA) on or before August 22, 2003. The consultation paper can be downloaded from the websites of the Information Technology and Broadcasting Branch, CITB (www.info.gov.hk/itbb) and OFTA (www.ofta.gov.hk).

End/Friday, May 23, 2003

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