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Following is the full text of a speech by the Secretary for Information Technology and Broadcasting, Mr K C Kwong, at the Conference of "The Future of Information and Communications Technology in Asia, Institute for the Future" today (Wednesday):

Mr Mittan, Mr Chen, Ladies and Gentlemen,

It gives me great pleasure to address you today in the Conference of "The Future of Information and Communications Technology in Asia" organised by the Institute for the Future and to speak on the subject of "Policy Initiatives for Development". As the Secretary for Information Technology and Broadcasting of the Government of the HKSAR, I would like to focus on how we see Hong Kong make the best use of advances in information and communications technology to stay ahead in this Information Age.

Our Chief Executive, Mr Tung Chee Hwa, who officiated at the opening of this Conference, outlined his vision of Hong Kong in the Information Age in his Policy Address last October. He has pledged to make Hong Kong a leader in the information world of tomorrow. To achieve this, we need to bring together four things :

(a) first, the hardware of high capacity communications systems;

(b) second, a common software interface mounted on established communications networks, through which individuals, business and Government can interact easily and securely using their own systems;

(c) third, people who know how to use the new technology; and

(d) fourth, a cultural environment that stimulates creativity and welcomes advances in the use of this technology.

To achieve this 4-pronged strategy, we have established a new Bureau within the Government of the HKSAR - the Information Technology and Broadcasting Bureau - which I now head. The aims are to enhance co-ordination and efficiency in the formulation of information and communications policies and to help promote IT and telecommunications development in the public and private sectors.

Before I go on to talk about the concrete steps we intend to take to deliver the Chief Executive's vision, I think I should briefly describe our current state of development in information and communications field. I hope that your experience in using the telecommunications and other IT facilities in Hong Kong in the past few days will support my assertion that we in Hong Kong have one of the most advanced information infrastructure in the world. Our fixed telecommunications network has been fully digitised since 1995. We have a telecommunications network comprising over 300,000 kilometres of optical fibre. We have 3.6 million exchange lines serving the entire population of some 6.5 million people, or about 55 exchange lines per 100 persons and 108 exchange lines per 100 households, the highest penetration rate in Asia. Our mobile telephone penetration rate is equally impressive. At 33%, it is one of the highest in the world. I should add that all this has been achieved without the heavy guiding hand of the Government. Rather, we have deliberately allowed the market to make its investment decisions. But we do take pride in providing an environment conducive to such decisions. For example, we have a firm, but light-handed regulatory authority who operates under open and clear rules. We have a simple, predictable and low tax regime that encourages investment. And we have no customs or any other form of barriers to the import of technology. Furthermore, we are continuing with our substantial moves in liberalising the telecommunications market, so that entrepreneurs could readily take advantage of the fast developments in technology to provide quality and innovative services to their customers.

On the IT front, we are no laggards either. A recent market survey showed that our home penetration rate of PC is over 50% and there are more than 850,000 Internet users in the territory. We have also witnessed the world's first commercial introduction of Video on Demand here. E-commerce over the Internet is also catching on.

However, we must not rest on our laurels; particularly in this Information Age when technological leads can easily be eroded if one is not constantly on the alert for technological advances and their innovative uses.

To this end, we will -

(a) continue with our liberalisation process in telecommunication and remove obstacles in our regulatory framework, e.g. to interconnection between local fixed and mobile networks, and enhance Hong Kong's position as a regional communication hub;

(b) develop an open, common interface information infrastructure, accessible throughout Hong Kong, for the delivery of public services;

(c) promote the development of electronic commerce through commissioning pilot projects in the private sector that make innovative use of this developing infrastructure; and

(d) work in partnership with the private sector to promote awareness in, and the use of, IT in the community.

Let me briefly elaborate on each of the four priority tasks I have just outlined.

First, on the further liberalisation of our telecommunications industry. Earlier this year, we have reached agreement with Hong Kong Telecom for the phased termination of its franchise on external telecommunications. Thus, service-based competition can begin on 1 January 1999 and facilities-based competition can begin on 1 January 2000. Also, the moratorium on the further issue of fixed telecommunication network licences in Hong Kong will end in June 1998. We are now considering whether, and if so, how further liberalisation should proceed. To this end, we have recently published a consultation paper to seek views from the public, including in particular operators in the industry, and user groups. We firmly believe that a vibrant and competitive telecommunication industry in Hong Kong holds the key to the achieving our overall IT policy objectives.

Second, the provision of public services to the community electronically via a common open information network. We are committed to improving the quality and efficiency in the delivery of public services to the community. Electronic Service Delivery (ESD) is a means to enable us to make our services more conveniently available to the public via the Internet, to extend the reach of our services, and to better meet new demand in an information age. In short, it can transform the way that Government operates. With ESD, the public will be able to transact business with Government online and on a seamless basis, and Government will be able to provide services 24 hours a day and seven days a week.

To take this initiative forward, we are now considering the range of public services which may benefit from the early introduction of ESD. We are examining a number of important related issues like confidentiality, integrity, authentication and non-repudiation of data transmitted via the Internet, the setting up of a Certification Authority for the purpose and the establishment of the necessary legal and regulatory framework for conducting electronic transactions.

The foregoing preparatory work is of course equally crucial to the implementation of our third priority task - the promotion of electronic commerce. It is worth noting that we are planning the electronic delivery of public service (ESD) on the basis of a common and open architecture, and in a modular and scalable form. This is so that, at a later stage, we can readily allow the private sector to get onto this infrastructure for transacting electronic commerce. We will aim to work with the private sector to identify pilot projects which may be so transacted.

Fourth, raising community awareness and promoting IT use generally. An important component in this is the education of our children. To this end, we have embarked on a comprehensive programme for the training of our teachers, provision of PCs to schools, connection of schools to the Internet and development of the necessary IT-assisted teaching materials. The aim is to equip our teachers with the necessary IT skills to apply computer-assisted teaching and learning across the school curriculum, and to place students in an environment where they can use IT as part of their daily activities and to grow up using it creatively.

I have highlighted a few areas in IT and communications where Hong Kong is pushing ahead so as to stay in the forefront of the Information Age. I would be happy to learn from our regional friends on the panel today the initiatives they are undertaking in their own countries. I am sure there will be opportunities for bilateral as well as multi-lateral cooperation so that we can all benefit from the exciting developments in information and communications all over the globe.

Thank you.

End/Wednesday, May 20, 1998

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