Cyber centre: Hong Kong could soon become the region's hub for Internet traffic.

The setting up of an Asia-Pacific Internet exchange in Hong Kong to serve the region's cyber traffic is being considered.

The Secretary for Commerce, Industry & Technology Henry Tang said the Government has discussed the possibility of the move with the industry.

He said with the full liberalisation of Hong Kong's external telecommunications facilities and services markets, several submarine and overland cables linking Hong Kong with the rest of the region are already in place.

The charges for external telecommunications lines linking up with Hong Kong have also become very competitive. 

"These, together with [our] world class telecommunications infrastructure, will enhance and strengthen Hong Kong's status as a telecommunications and information services hub in the region, and increase the prospect of Hong Kong developing into an Asia-Pacific Internet exchange hub," Mr Tang said.

"We encourage the industry to attract early connection of Internet exchanges and major operators on the Mainland and other areas in the Asia-Pacific region to Hong Kong, with a view to promoting the development of Hong Kong as a regional Internet exchange hub."

The Commerce, Industry & Technology Bureau is actively discussing with the Chinese University the operation of Hong Kong Internet Exchange, with a view to reaching a sustainable arrangement that will facilitate its long-term operation.

Established by the university in 1995 and operated by it, the exchange provides Internet exchange services for Hong Kong.

On reports that it might cease operation due to financial problems, he stressed that the exchange has been operating smoothly and the Government has no plan to set up a new organisation to take over the local Internet exchange function.