HK$25.5 billion between 1999 and 2002.fficeffice" />
The implementation of full number portability for both fixedline
and mobile services has further intensified competition
among operators while enabling consumers to enjoy
significantly cheaper telecommunications services. In view
of the maturity of the voice market, the industry has now
started to make a foray into the development of data
services. The trend is evident by the launch of interoperator
short message services and multi-media
messaging services in 2001 and 2002 respectively.
The results of an independent study issued in June this
year reflect the extraordinary achievements brought about
by the liberalisation policy. This first international
benchmarking study commissioned by OFTA confirms that
ffice:smarttags" />Hong Kong is a leading market in terms of effectiveness of
competition as compared against seven other advanced
economies under review. We are not only one of the least
expensive markets for telecommunications services but
also enjoy a high level of investment in telecommunications.
Ringing the Changes
We have made great strides in the development of
telecommunications in the past 10 years. However, operating
within a highly competitive market, a changing economic
environment and increasing demands of the industry and
consumers, our work will continue to be challenging.
In order to ensure fair competition among operators and to
step up our efforts in providing a level playing field for
investment, we have introduced the “Telecommunications
(Amendment) Bill 2002” to provide a transparent and
efficient regulatory framework for the mergers and
acquisitions of telecommunications service operators. The
legislative procedures were completed in July 2003 and
the legislation is expected to take effect in the fourth quarter
of 2003 following the drawing up of relevant guidelines after
consultation with the industry. We believe the legislation will
enable the industry to make informed decisions regarding
regulatory concerns pertaining to mergers and acquisitions.
In view of the rapidly changing market landscape, we are
now conducting a comprehensive review on the Type II
interconnection policy which was implemented in 1995.
After more than seven years of implementation, and the
completion of the liberalisation policy, we think it is timely to
conduct an overall review. The policy was introduced to
encourage competition by enabling operators without |