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The Office of the Telecommunications Authority (OFTA) today (September 15) announced its decision to put resellers of telecommunications services under the regulation of a class licensing regime. This is to ensure a level playing field in the market and enhance consumer protection.
There are a wide range of public telecommunications services, like local or international voice services, fixed or mobile services, either in prepaid or postpaid format offered by resellers in the market for consumers' choices.
"In view of the rapid telecommunications market development and the thriving of various means of resale activities, we see the merit in commencing the regulation of resellers of telecommunications services," a spokesman for OFTA said.
After two rounds of public consultation conducted in 2004 and 2006, the Telecommunications Authority has decided to create the Class Licence to put resellers of telecommunications services under regulation. The regulation will be a light-handed one. Resellers will automatically become class licensees without any requirements of individual licence applications or registrations.
"Class licensees are mainly subject to the regulation of licence conditions which aim at consumer protection. For example, they will be required to provide certain specified information, including their names and information on the services provided, to facilitate consumers to make informed choices. Class licensees are also bound to follow statutory provisions under the Telecommunications Ordinance. For example, they are prohibited from engaging in misleading or deceptive activities," the spokesman said.
Nevertheless, agents or contractors of licensed operators who sell or promote telecommunications services for or on behalf of the operators will not fall within the regulation. For example, retail outlets which sell telephone cards issued by licensed network operators will generally be regarded only as agents of the operators.
The industry will be briefed on the new regime and be given sufficient time to prepare themselves for the implementation of the new Class Licence. For better consumer protection, publicity programmes will also be launched to promote public awareness of the new licensing regime.
The authority Statement on the Class Licence for resellers of telecommunications services and a copy of the Class Licence can be downloaded from OFTA's web site at: www.ofta.gov.hk.
Background:
The Class Licence covers services falling within the scope of section 8(1)(aa) of the Telecommunications Ordinance (Cap. 106). The section provides that save under and in accordance with a licence granted by the authority, no person shall in Hong Kong "offer in the course of business a telecommunications service". Section 8(1)(aa) is not yet in operation. The commencement notice for section 8(1)(aa) will be tabled for vetting by the Legislative Council. The commencement of the section is scheduled to be effective from next February. The licence will be effective at the same time as the section commences operation on the date given in the commencement notice published in the Gazette.
Ends/Friday, September 15, 2006
Issued at HKT 14:01
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