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Following is a speech by the Secretary for Commerce and Economic Development, Mrs Rita Lau, at the 39th International Institute of Communications Annual Conference this (November 3) morning:
Mr (Arne) Wessberg, Mr (Brian) Quinn, Mr (Daniel) Fung, Distinguished Guests, Ladies and Gentlemen,
Good morning. On behalf of the Hong Kong Special Administrative Region (HKSAR) Government, I am pleased to extend my warmest greetings to you all for attending the 39th International Institute of Communications (IIC) Annual Conference. This is the first time this prestigious international event has taken place in Hong Kong. I am delighted to have the opportunity to take part and to say a few words this morning.
The 21st century is an age of globalisation and of convergence of communications and technologies. With the rapid development, we now live in a global village with close connectivity. We are able to work and communicate with people from all over the world in a manner that truly transcends the traditional geographical boundaries. Industry regulators as well as business operators are striving to cope with the challenges that this increasingly linked world presents. The key is to have a light hand to allow business to seize the emerging opportunities, driven by technological advancement and increasing convergence of the media.
As most of you will know, Hong Kong has a strong and robust communications infrastructure and we are worldwide leader in transforming our infrastructure from copper wire to fibre optics and, increasingly now, to wireless services. For the fixed networks, customers are benefitting from competition among about 10 operators. Strong competition in the market place has resulted in a multitude of different options. On top of the conventional telephony, VoIP (Voice over Internet Protocol) services offered by local operators have already recorded more than 400 000 subscribers. On the mobile telephony side, I am pleased to be able to report that the penetration rate has exceeded 150%, meaning that each and every man, woman and child in Hong Kong carries 1.5 mobile phones. I have two myself! But these are not simple telephones as some 27 % of us subscribe to 3G or 3.5G services to enjoy a wide range of advanced multimedia services.
For Internet connections, we have ubiquitous broadband access in all commercial and residential buildings in Hong Kong. Our broadband penetration is among the highest in the world, with a household penetration rate of 77%. The internet is no longer stuck in homes and offices. It is increasingly available where and when we want it. Riding on the 3G platform, we have Internet access even in our subway trains. Yet the monthly package for mobile phone plus Internet access on a 3G platform is now as low as US$15. Beyond this, Hong Kong also excels in Wi-Fi coverage. Through the joint efforts of the Government and private sector operators, there are now about 7,200 Wi-Fi hot spots throughout the city. Truly, Hong Kong can claim to be one of the best connected cities in the world!
So the infrastructure here is strong. But what about the availability of content? The HKSAR Government is firmly committed to upholding the core value of freedom of expression and is very supportive of the creative industries. I am proud to be able to say that the local broadcasting scene is vibrant and viewers' choice is abundant. For example, this compact city with a population of just seven million offers viewers a choice of more than 300 television channels. We have recently commenced digital free-to-air terrestrial television broadcasting and have reached 75% digital coverage with some 25% household penetration in less than one year of implementation. The local audience can now receive 12 digital TV channels entirely free of charge, including a full-time high-definition (HD) channel as well as a round-the-clock news channel, which are services often offered in other places only via pay TV service. Of course, we also have fully digitised cable TV services and the most advanced Internet-Protocol Television (IPTV) services in the world. Indeed, we have been at the forefront of the development and adoption of this new system. There are now more than one million households, or close to half of our population, who subscribe to IPTV services. A significant development within a short implementation period of only five years.
Hong Kong also takes pride in itself as a regional broadcasting hub in the Asia-Pacific. About 17 international and regional satellite broadcasters are based in Hong Kong providing about 200 satellite television channels serving more than 300 millions viewers in the Asia-Pacific region, Europe and Africa.
With our ultra-high mobile penetration rate and media convergence, there is considerable market interest in the provision of even more TV services. We recently completed public consultation and will soon announce the implementation framework for rolling out new broadcast-type mobile TV services in Hong Kong. These will be on top of the existing signal streaming services delivered over the 2.5G and 3G platforms.
I can say without fear of contradiction that Hong Kong really has established itself as a city that embraces new applications of technology.
To enhance Hong Kong's status as a leading wireless city, we have decided to release frequency spectrum for the provision of broadband wireless access (BWA) services supporting advanced high-speed wireless fixed and mobile services. The local public will soon have an even wider choice of innovative services and they can access the Internet and multimedia services any time, anywhere. We will auction the concerned spectrum early next year.
Looking ahead, I am convinced that the next wave of technological revolution will ride on the Next Generation Network (NGN) which will very soon emerge. This is a single network platform carrying voice, data, video and multi-media services. In Hong Kong, major telecom operators already offer triple-play and even quadruple-play services: integrating fixed-line, IPTV, broadband internet, and mobile services into one package. One of our service providers already offers a triple-play service on its fully IP-based NGN platform while another incumbent operator has announced plans to complete the transformation of its network to NGN by 2016.
The key to Hong Kong's success in the advanced communications field is a combination of marketplace competition with a common sense policy framework. This has not come about by chance. Consistent with our business-friendly philosophy, our motto is: market leads and government facilitates.
The HKSAR Government seeks to provide a regulatory environment that is conducive to business development. We have put in place a light-handed regulatory regime for the communications industry. We were among the first jurisdictions in the world to separate the licensing and regulatory frameworks for the "carriage" and "provision" of TV services, and have developed a technology-neutral regulatory regime. We do not have foreign investment limits or restrictions on business models. Nor do we pre-censor broadcast content. We have also fully liberalised our telecommunications market since 2003 and subject to availability of spectrum, we have not set any prescribed limit on the number of licences to be issued. We leave it to the market and consumers to decide what is best.
The emergence of new media platforms driven by advances in technology not only opens up new markets for the communications industry, but also brings about new challenges for the community. Issues such as how to effectively protect content against piracy, and how to safeguard minors from content which may be harmful to them. We are engaging the public in consultation over these two issues: how to strengthen copyright protection in the digital environment; and how we might improve our current framework for the control of obscene and indecent articles in the light of social development, technological advancement and prevalence of new media, including the Internet. Whatever emerges from these consultation exercises, I want to stress that any new proposals will not be allowed to undermine our core values. We will continue to protect the free flow of information and freedom of expression which we treasure here in Hong Kong.
Ladies and gentlemen. I have attempted to demonstrate that Hong Kong is embracing the technological changes that are taking place every day. We are responding to the inevitable challenges and seizing that opportunities with our typical "can do" spirit. I hope you will be able to get a good feeling for this "can do" spirit of Hong Kong during your attendance at the IIC Annual Conference.
Finally, may I take this opportunity to wish you all a successful and rewarding conference. For our overseas delegates, I would encourage you to see for yourself what we can offer as Asia's World City during your stay in Hong Kong. I am sure you would appreciate why the IIC has chosen to hold its annual conference here in Hong Kong.
Thank you!
Ends/Monday, November 3, 2008
Issued at HKT 11:21
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