OFTA proposes voluntary implementation of Fixed Mobile Number Portability
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     The Office of the Telecommunications Authority (OFTA) today (October 31) issued a consultation paper to seek public views on various issues in connection with the voluntary implementation of Fixed Mobile Number Portability (FMNP).

     Under the present arrangement, subscribers to the service provided by one fixed network operator may port their numbers to another fixed network operator. Likewise, subscribers to the service provided by one mobile network operator may port their numbers to another mobile network operator. However, cross platform number portability between fixed and mobile networks, commonly known as FMNP, is not yet available in Hong Kong.

     "FMNP allows fixed and mobile users to port their fixed or mobile numbers to any fixed or mobile network as they like. Generally speaking, FMNP should help increase cross platform competition between the fixed and mobile network operators, provide innovative solution to meet the demand of the customers and encourage more efficient use of the scarce public resource of numbers," an OFTA spokesman said.

     "However, there are views requesting the Telecommunications Authority (TA) to assess carefully the impact brought about by the introduction of FMNP in order to ensure that the regulatory regime is conducive to market development and consumer welfare," the spokesman continued.  

     "A consumer survey commissioned by the TA reveals that around one-fourth of respondents who are using fixed service may port their numbers to mobile service if the FMNP service is provided free of charge. The corresponding figure for porting mobile numbers to the fixed networks is much lower," the spokesman elaborated.

     "Having considered the public demand for FMNP as revealed by the consumer survey, relevant overseas experience and the fact that market force is the best way to determine the market outcome, the TA is of the preliminary view while there is insufficient justification to mandate the implementation of FMNP, it should be in the public interest to allow individual network operators to make their own business decisions to implement FMNP on a voluntary basis," the spokesman said.

     The TA invites public views on the proposed voluntary implementation of FMNP, the need for the TA to set out the necessary basic guiding principles in order to ensure an orderly implementation of voluntary FMNP, and other associated issues, including the need to identify the asymmetrical regulatory arrangements which currently apply to fixed and mobile services and which may impede the implementation of FMNP.

     A copy of the consultation paper as well as the consumer survey report can be downloaded from the following hyperlinks at OFTA's website:

Consultation Paper:
http://www.ofta.gov.hk/en/report-paper-guide/paper/consultation/cp20081031.pdf

Consumer Survey Report:
http://www.ofta.gov.hk/en/report-paper-guide/report/rp20081031.pdf   

     Interested parties are invited to submit their views on or before December 30, 2008.

Background:

     In the consultancy report on fixed-mobile convergence prepared by the independent consultant, Ovum Limited, it was advised that the TA should carry out market research to find out the actual consumer concerns and to ascertain the consumer demand for FMNP before deciding whether to introduce FMNP. Taking into account Ovum's recommendation and the feedback in relation to the FMNP issues in the Fixed Mobile Convergence consultation exercise conducted in December 2006, the TA decided to conduct a market survey to find out the consumer demand for FMNP. The survey was subsequently conducted in February 2008 and the result reveals that while there is public demand for FMNP, the demand is not high. After studying the survey results and having regard to the relevant overseas experience, the TA has reached his preliminary views on the subject matter and decided to consult the interested parties on the various issues associated with the proposed voluntary implementation of FMNP.

Ends/Friday, October 31, 2008
Issued at HKT 18:42

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