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The Office of the Communications Authority (OFCA) notices that the article entitled "Huge Difference in the Monthly Subscription Fees for Broadband Services: Online VS Street Station¡¨ published in the CHOICE magazine issued today (May 16) misinterpreted that some outdated broadband service charge information of operators is posted on OFCA's website and it fails to reflect the current market situation. Though Consumer Council has voluntarily explained the above misinterpretation at the press briefing this morning, OFCA would like to clarify the matter here once again, in order to avoid misunderstanding of the public arising from the article.
The telecommunications services market in Hong Kong has been fully liberalised. Telecommunications service operators (operators) are free to set their services charges based on their commercial considerations and marketing strategies, and also to provide different types of preferential offers and discounts to customers from time to time in the light of competition in the market. According to the Telecommunications Ordinance (Cap. 106) (TO), no approval from the Communications Authority (CA) is required for the services charges set by operators.
Pursuant to section 7F of the TO and the relevant licence conditions, operators are required to publish the "tariffs" arrangement for the public telecommunications services they provide. The service charge level within the "tariffs" published by an operator is the ceiling charge that the operator can charge their customers. In other words, operators may charge customers no higher than the service charge as listed under the "tariffs" in the light of competition in the market. The ceiling charge level does not bear a direct relationship with the actual service charge imposed by the operator in its provision of the service. OFCA alerts consumers specifically here that they should not use the ceiling charge which is published by the operator in accordance with the law for the purpose of subscribing to and comparing the price levels of different services offered by different operators in the market.
The statutory obligation which requires operators to publish their "tariffs" arrangement aims at enhancing transparency in the market, allowing the public and the industry to check the "tariffs" arrangement for different services launched by each operator so as to promote competition. So long as the service charge published within the "tariffs" arrangement remains the ceiling charge imposed on the service, it is not necessary for the concerned operator to make any amendment or update. Therefore, the related information posted on OFCA's website is the ceiling charge information which remains valid.
OFCA would like to take this opportunity to alert consumers with the following consumer tips when making subscription choice for fixed broadband services:
* Currently, most of the residential customers in Hong Kong have a choice of two or more fixed network service operators, such that consumers may compare the prices and quality of service before making the decision on subscription. As there are a variety of choices, consumers are advised to spend more time to compare carefully the terms and conditions of different service plans, in order to choose a service which best fits their own requirements.
* Before signing a new contract for fixed broadband service, apart from considering the price and quality, smart consumers should also pay attention to the network coverage and the details about contract arrangement, including the provisions of value-added services, arrangements for service termination, contract renewal and service relocation, etc.
* If there is anything unclear, including charge and service conditions, consumers should enquire with the operators and understand clearly beforehand, and must not lightly sign a contract due to any preferential charge or free gift.
* The other point worth noting is despite that there is currently no law governing contractual disputes between telecommunications service providers and their customers, all major fixed and mobile network operators in Hong Kong have implemented the "Industry Code of Practice for Telecommunications Service Contracts" (Industry Code) since July 2011. The Industry Code provides guidelines on the drawing up of fair, balanced and reasonable service contracts between the industry and consumers, so as to bring about improvements in such aspects as contract contents and arrangements. The Industry Code also stipulates that if the concerned contracts are concluded during unsolicited visits to a customer's home, a cooling-off period of seven days is applicable. Before signing a new telecommunications service contract or renewing an existing contract, consumers are advised to read through and understand clearly the contents of the service contracts, and make reference to the Industry Code where necessary. They can also seek clarification from service providers on the concerned contract terms if in doubt.
* Having taken into account the experience in implementing the Industry Code, the revised Industry Code has taken effect from May 2015 to further protect consumer interests, including the arrangements for contract termination by customers which the service providers are encouraged to make the service termination form available on website for download; accept any written termination request; acknowledge the receipt of any verbal, written or in person service termination request promptly, and handle the termination request promptly without unreasonable delay.
* For more information about consumer protection under the Industry Code, please refer to the "Consumer Alert" on OFCA's website.
(www.ofca.gov.hk/en/consumer_focus/education_corner/alerts/tsc/index.html)
Since the implementation of the Industry Code in 2011, there was no case of contravention of the Industry Code. This is a testimony of the effectiveness of the Industry Code in ensuring the drawing up of fair, balanced and reasonable service contracts between the industry and consumers. Any consumer who suspects that an operator has breached the Industry Code may complain to Communications Association of Hong Kong at www.cahk.hk or OFCA at www.ofca.gov.hk/en/contact_us/enquiry/complaints/index.html .
OFCA will continue to monitor the market situations and keep up with our efforts in consumer education and maintaining cooperation with the industry and the Consumer Council, in order to strengthen the protection for telecommunications service consumers.
Ends/Monday, May 16, 2016
Issued at HKT 21:29
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