Hong Kong is a leader in effective competition in the telecommunications market, a report has found.

The study compared telecommunications markets in Hong Kong, Australia, Japan, Singapore, South Korea, Sweden, the UK and the US.

It was undertaken by a consultant commissioned by the Office of the Telecommunications Authority.

The scope of the study includes the local fixed voice sector, mobile sector, data access (i.e. broadband services) sector and international services sector.

It focuses on four key competition issues, including the competition environment and regulatory framework, development and effectiveness of competition, consumer benefits derived from competition, and industry investment.

The office said Hong Kong has the most competitive mobile sector of the seven reviewed markets.

In the local fixed voice sector and the international services sector, new entrants have gained significant increases in market share in the past few years.

This is the outcome of liberalisation policies and pro-competition regulations, the office said.

Consumers have derived substantial benefits in cost savings.

The cumulative savings resulting from competition in the mobile market are estimated to be $70 billion from 1996 to 2002. Savings on IDD call rates from 1999 to 2001 amounts to an estimated $31 billion.

Hong Kong also has the highest mobile penetration rate, and the second highest broadband penetration rate after South Korea among the reviewed markets.

Meanwhile, the cumulative investment per capita during 1991-2001 is around $14,000. It is higher than five other reviewed markets, similar to UK and second to Japan.

With substantial investment, operators have been able to deploy advanced networks and deliver innovative products and services to end-users.

The full report can be downloaded from the OFTA website.