Presentation by Office of the Telecommunication Authority, The Government of the Hong Kong Special A

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Presentation by Office of the Telecommunication
Authority,The Government of the Hong Kong
Special Administrative RegionITU Seminar on
Policy and Regulation25 July 2007Shanghai,
China
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• Fostering Policy Drivers
• to Promote Harmonious Development
• of Telecommunications
• in an Era of Transformation

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In an Era of Transformation

• Fundamental changes to the industry
• the how, the what, the how again,
• to whom, and what next?
• Harmonious development dependent on a market
  environment conducive to growth and investment

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Main Drivers for Transformation

• Liberalisation and competition in
  telecommunications sector
• Dynamic change and market-driven industry
• Emergence of new technologies VoIP, IPTV,
  Broadband Wireless Access, Mobile TV etc
• Provision of multi-media services, of video,
  voice and data
• Migration to NGN

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Transformation of the Market

• Change of demand structure
• User demand for new services boosting new
  revenue streams and bandwidth requirements
• Convergence of services
• Integration of segments - telecom (fixed and
  mobile), broadcasting, internet access,
  broadcasting etc
• Change of industry structure
• From monopolistic to multi-operator environment
  with full competition, not solely on price but
  variety of service and contents, and quality of
  service

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Impacts of Transformation

• Regulator to facilitate a regulatory framework
  and market environment conducive to growth and
  investment
• Operator to invest in new technologies, to cope
  with user-demanded change, to adapt to the new
  market landscape
• User to acquire information and knowledge on
  changes in technologies, to demand better
  consumer protection and customer care

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Operators to Manage Transformation (1)

• Network evolved from voice-data to integrated
  service transmission (voice-data-multi-media
  services)
• - In Hong Kong fast uptake of IPTV services
• eg NOW
• From legacy communications network to NGN
• - Operators are in the pipeline for migration
• Enhancement of mobility and ubiquitous wireless
  access
• - Seamless and territory-wide coverage

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Operators to Manage Transformation (2)

• Change in business models
• From focus on facility-management to
  customer-oriented service provision
• From competition of network efficiency to service
  quality, contents, integration of services, added
  values
• New teams, new marketing approaches, new alliances

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Users to Adapt to Transformation

• In the light of technological change and new
  service provision, users need
• - Transparency of service standards to enable
• informed choice
• - Security and privacy protection (e.g. against
  spam and intrusion on privacy)
• - Comprehensive service coverage and
  accessibility
• to emergency services

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Regulatory Regime for Transformation

• OFTAs regulatory regime
• Pro-liberalisation, pro-competition and
  pro-consumer, providing a regulatory framework
  which ensures availability of the widest range of
  quality telecoms services at reasonable prices
• Technology-neutral, proactive and react promptly
• and effectively to the rapidly changing market
  and new demands on the regulatory framework

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Policy and Regulatory Objectives (1)

• As a Facilitator
• To facilitate the introduction of new services
• - to re-examine current policy and regulation
• To lower market entry barriers for new players
• To support growth by allocating new resources
• To seek to protect consumer interests
• - help consumers make informed choices

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Policy and Regulatory Objectives (2)

• As a Regulator
• To develop policy and regulation to meet the
  changes in the nature of services
• To provide a level-playing field
• To adopt a market-driven approach
• To enhance transparency
• To seek to protect consumer interests and address
  social concerns

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Regulatory Approach

• Move from ex ante to ex post regulation - when
  the market is effective
• Market-driven approach, competitive environment
• Investment to be undertaken by the private sector
• Regulator to provide conducive environment

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Some Policy and Regulatory Initiatives

• Fixed Mobile Convergence and NGN
• - Unified Carrier Licence
• - Interconnection charges
• Resources for Enhanced Access
• - Municipal Wi-Fi Services, Broadband Wireless
  Access, Mobile TV etc
• Converged Regulator

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Fixed-Mobile Convergence (1)

• Unified carrier licence (UCL)
• To replace existing fixed and mobile carrier
  licences
• Consultation conducted in 2005
• UCL planned to be available in 2008

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Fixed-Mobile Convergence (2)

• Interconnection charges
• Currently mobile partys network pays
• Asymmetric approach probably no longer relevant
  with FMC and NGN
• Proposed to deregulate and let the market decide
• No evidence of failure if deregulated
• The TA reserves the power to intervene

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To Enhance Accessibility

• To facilitate introduction of new technologies
  and services and smooth migration into NGN
• Mobility, access, reliability
• Make available spectrum resources required for
  Mobile TV, Broadband Wireless Access
• Make licensing and regulatory arrangements

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Addressing Consumer and Social Issues

• Sustainable and harmonious industry development
  dependent on a foundation of users trust and
  confidence in services available, which are
  useful, beneficial and reliable
• Provision of information to help make informed
  choices
• Security and privacy issues
• Unsolicited Electronic Messages Bill enacted on
• 1 June 2007 to combat spam
• Fixed-Mobile Number Portability
• Policy to support consumers making choices

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• Harmonious development is dependent on a market
  environment conducive to growth and investment.
• Thank you.