Hong Kong's market-driven approach has fostered an innovative and competitive telecommunications industry, comprising local, Mainland and overseas operators investing in facilities and developing new services and products to satisfy a community more receptive to the rollout of new and advanced technology.

This was the message from Secretary for Commerce & Economic Development Frederick Ma addressing a plenary session on changing market profiles and flexible regulatory frameworks at the 7th APEC Ministerial Meeting on Telecommunications & Information Industry in Bangkok today.

"Virtually all aspects of the telecommunications market in Hong Kong are fully liberalised. There is no pre-determined quota of licences for any kind of telecommunications service operators. There has also been no investment restriction imposed on foreign entities owning telecommunications facilities or operating telecommunications services in Hong Kong.

"Hong Kong consumers are enjoying the fruits of a liberalised telecommunications market which is light-handedly regulated. Hong Kong's telecommunications market is one of the most competitive in the world," he said, noting the rollout of multiple end-to-end telecommunications networks offering facilities-based market competition.

Competition benefiting consumers

Five fixed-network operators are competing with each other at the retail level providing voice, broadband and pay-television services on a standalone or bundled basis to consumers. There are also five mobile networks, which all offer multimedia services on top of basic voice and data services.

As of last November 79% of Hong Kong's 2.5 million households were connected by at least two end-to-end networks self-built by operators, and 55% were connected to at least three networks, making the city unique in the world.

Mr Ma said in the early 1990s the Government had already recognised competition in Hong Kong's telecommunications market would reinforce the overall competitiveness of its economy, and has worked towards market liberalisation.

Future forecast

Mr Ma said new issues will surface as the market and technology develop. On the realisation of fixed-mobile convergence he said the Government will provide a conducive regulatory framework by proposing a licensing regime which enhances operators' flexibility in the provision of their services.

"To facilitate the introduction of advanced technology and more efficient services we will keep monitoring the market trend and review our licensing regime to ensure we do not inadvertently become an obstacle to market development.

He said the Government is monitoring the development of the Next Generation Network which will integrate fixed, mobile and data networks, and its impact on the future regulatory framework. The Government will create an enabling environment allowing operators to make the transition to the network.

Meanwhile, Mr Ma also held a bilateral meeting with the Minister for Broadband, Communications & the Digital Economy of Australia Stephen Conroy this morning.