The Office of the Telecommunications Authority today issued a consultation paper to solicit industry views about the proposed new guidelines relating to anti-competitive conduct in telecoms markets.

The guidelines seek to explain how the authority will apply and enforce the provisions of section 7K, 7L & 7N of the Telecommunications Ordinance, which deal with anti-competitive conduct of telecoms licensees.

The existing guidelines were issued in 1995. After eight years of implementation, the authority wants to review the guidelines. A timely review will be helpful to the industry, the authority said.

Industry players gave their support when the proposed review was floated in the consultation papers previously issued on the applications of PCCW-HKT Telephone for declaration of non-dominance in the business and residential fixed-line market.

The guidelines seek to explain in detail the matters the authority will take into account as well as the analytical framework when applying the competition provisions.

This consultation exercise is separate and independent of any competition cases or applications being handled by OFTA. All current competition cases are being assessed according to the prevailing 1995 guidelines.

PCCW claims market shares below 75%

For instance, in the two applications of PCCW for declaration of non-dominance in both residential and business markets, PCCW claims that its market shares are now below 75%.

If this is found to be true, under the prevailing 1995 guidelines, the authority will not make any presumption on whether PCCW is dominant or not, as its claimed market shares are between 25% and 75%.

The authority will continue to consider the applications with no presumption on its dominance, and having regard to relevant factors, such as market definition, market share, pricing power and entry barriers.