The Government has proposed reductions in annual fees for telecoms licences - to $200,000 from $500,000 for fixed-carrier licences to operate external telecoms services only, and to $20 per mobile station from $24 for mobile-carrier licences.

A consultation paper inviting views from the telecoms industry and the public on these proposed fee reductions was issued today.

The Commerce, Industry & Technology Bureau said the reduction for fixed-carrier licences would reflect the decreased administrative cost of regulating the external telecoms services market.

The reduction would benefit more than 20 operators that operate external services by cable or satellite in Hong Kong.

Administration costs decline, paving way for reduction 

The unit cost of administering mobile-carrier licences has declined as a result of the increase in the number of mobile-phone subscribers, including activated prepaid SIM cards. The number of mobile subscribers rose from 4.9 million in December 2000 to 6.2 million in October 2003.

Fees for mobile stations under public radio communications services licences and public non-exclusive telecoms service licences would also be reduced to $20 per station from $24.

All 2G and 3G operators, together with trunked radio operators, radio-location service operators, mobile-data service operators, paging companies and mobile virtual network operators, would benefit from the proposed fee reductions.

Public urged to make views heard

The Government is required under the Telecommunications Ordinance to consult the public about the fee reductions. It has proposed to bring the reductions into effect from May 1, subject to the amendment of the relevant regulations.

Copies of the consultation paper are available at the Commerce, Industry & Trade Bureau offices and the Office of the Telecommunications Authority, or by downloading from the following websites: http://www.info.gov.hk/citb/ctb or www.ofta.gov.hk.

Send your views to OFTA, 29th Floor, Wu Chung House, 213 Queen's Road East, Hong Kong by post, by fax to 2803 5111, or by e-mail to tpllo@ofta.gov.hk on or before January 30.