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Following is a question by the Hon Emily Lau and a reply by the Acting Secretary for Information Technology and Broadcasting, Ms Eva Cheng, in the Legislative Council today (March 13):
Question :
It is learnt that some members of the public have remarked that the speed of the broadband conveyance/access services provided by certain Fixed Telecommunications Network Services (FTNS) operators in Hong Kong is too slow, and the broadband conveyance/access services used by some households in private buildings are ten times slower in speed than those used by universities. In this connection, will the Executive Authorities inform this Council:
(a) whether they know the causes of the above situation, and whether such causes include FTNS operators' under-investment, or property developers' refusal to allow FTNS operators other than their own to provide broadband services; and
(b) of the measures in place to ensure that Hong Kong will not lag behind other developed countries in terms of the speed of broadband conveyance/access services?
Reply :
Madam President :
(a) At present, there is a variety of broadband internet services at different speeds available for the general consumers. Apart from the generally available 1.5 Megabits per second (Mbps) services, there are also higher speed services at 3 Mbps, 6 Mbps, 10 Mbps or even the soon to be introduced 36 Mbps. The range of service speeds available compares favourably with those available to overseas consumers. For example, in the United Kingdom, British Telecom offers broadband internet services at a speed of 500 kbps to 2 Mbps. In Canada, Bell Canada offers services at 960 kbps. In both places, some of their cable operators offer services at 5 to 10 Mbps. Moreover, the wide range of services in Hong Kong are available at very competitive prices ranging from about $48 per month to over $300 per month. Hong Kong therefore offers comparable, if not more favourable, broadband services when compared with advanced overseas jurisdictions.
I would like to supplement that suitable conditions need to be satisfied if the desired service speeds are to be reached. For example, the hardware of the personal computer like processing speed of the Central Processing Unit (CPU) and memory size, and the type of application software (e.g., the browser) used by the customer will all affect the actual speed of accessing the internet. Moreover, general residential customers tend to access the internet at night after work. With many people using the internet service at the same time during peak hours, it may lead to traffic congestion and reduction of bandwidth shared by users, and hence affecting the speed of internet access. Other factors like the location of the individual web site, and capability of its server in coping with simultaneous access by multiple users, will also affect the actual speed for a user in accessing a particular web site.
Madam President, it is suggested in the question that the speed of broadband internet services used by residential customers might be ten times lower than that used by the universities. I would like to point out that the universities are not using broadband internet service from the Internet Service Providers as with residential customers. They use their own networks which are high-capacity networks comprising leased circuits dedicated for the use by universities. These networks are procured by the universities to ensure that they can handle transmission and processing of voluminous data for academic and research purposes. To meet their needs, the universities normally use high-capacity, high speed networks that can support transmission speed of around 10 Mbps or above. On the other hand, the needs of individual customers are quite different. We have a diversified profile of individual customers ranging from occasional users to frequent users. Their needs for broadband internet services vary. As a result, there exists a wide range of services to meet such variation in demand. Individual customers who have the need to go for higher speed services are free to choose services of 10 Mbps or above which are comparable to those used by the universities.
Hong Kong in fact compares favourably with other developed economies in terms of the speed of broadband internet services available to general consumers. With a broadband coverage of over 95 per cent households and virtually all commercial buildings, consumers in Hong Kong are free to choose from the variety of services which best suits their own needs and requirements. Indeed, we see that improving broadband internet services at increasingly competitive prices have boosted the number of broadband subscribers from around 51,000 in February 2000 to the over 623,000 in December 2001, a 12 fold increase in less than two years. We expect that service quality and prices will further improve as more and more people use broadband internet services, and as competition intensifies.
(b) As I explained in part (a), Hong Kong compares favourably with other developed countries in terms of the speed of broadband internet services available to general consumers. Various measures we have taken have facilitated the development of the broadband market in Hong Kong.
Firstly, we are committed to fully liberalising our local fixed telecommunications market. With the issuing of six more local fixed telecommunications network services licences, we now have a total of ten local fixed telecommunications network services providers, all of whom are capable of providing broadband services. From January 1, 2003, the local fixed telecommunications market will be fully liberalised. The level of investment in the infrastructure will be determined by the market.
Secondly, we aim to provide a pro-competition environment and a level playing field for operators. With the enactment of the Telecommunication (Amendment) Ordinance 2000, we have provided statutory pro-competition safeguards to enhance competition in the market. Under section 36A of the amended Telecommunications Ordinance, the Telecommunications Authority is clearly empowered to make determinations on interconnection, including related terms and conditions. In November 2000, the Telecommunications Authority has issued a statement laying down a transparent and pro-competition framework for broadband interconnection.
Thirdly, we seek to facilitate the roll-out of broadband network by the telecommunications operators. With the enactment of the Telecommunication (Amendment) Ordinance 2000, we have expressly provided authorised FTNS operators with the right of access to buildings to facilitate them to install their networks. It is therefore illegal for property developers to refuse access by an FTNS operator authorised by the Telecommunications Authority. Under section 14(4), an authorised FTNS operator may apply to a magistrate for an order that a person shall not prevent or obstruct the operator from exercising the statutory right.
For instance, last year a local wireless FTNS operator initiated legal proceedings for such an order from the magistrate, after refusal of entry into a residential building by the property owner. Subsequently, the FTNS operator did successfully gain access to the building after reaching agreement with the property owner, without the need to complete the legal proceedings.
In addition, the Office of the Telecommunications Authority has set up a specialised in-building access team to co-ordinate and facilitate such access. More recently, it has launched a publicity drive to educate the owners and building management of the benefits of allowing network operators to gain access to buildings to extend their network coverage.
Madam President, Hong Kong has an excellent broadband infrastructure for the development of the broadband market. Our quality of service, including speed, variety of choice and prices offered, all compare favourably with other advanced economies. We will continue to implement the above measures to ensure that Hong Kong maintains our position as a leader in the development of broadband service.
End/Wednesday, March 13, 2002
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