Sunday 20 May 2012

Contents of module

Statements and Policy

Up to October 2000 the Telecommunications Authority has issued 40 Statements on interconnection policy. The first, Interconnection and Related Competition Issues, issued on 28 March 1995, restated the policy objectives of the Hong Kong Government as follows:

  • That the widest range of quality telecommunications services should be available to the community at reasonable cost;
  • That telecommunications services should be provided in the most economically efficient manner possible; and
  • That Hong Kong should serve as the preeminent communications hub for the region.

It is clear that interconnection policy is intended to follow from these policy objectives, and is designed to serve them. The Statement goes on to say

Regarding interconnection, the Government announced that consistent with a light handed, market driven, regulatory approach, it wished to see operators attempt to resolve interconnection and access issues through commercial negotiation in the first instance. And where intervention by the regulator proved necessary, due to a breakdown of commercial negotiations or to over-riding public interest, the TA’s decisions would be to promote economic efficiency and consumer interests.(Statement, 28 March 1995)

So, from the first Statement onwards, the TA makes clear (a) the procedural principles that will guide him, and (b) the basis upon which he will intervene, that is, make Determinations and issue Directives. This Statement is therefore important in establishing both a degree of certainty and of understanding by the industry and public of the procedures and of the importance of transparency. However, the Statement was issued because

It is apparent that commercial negotiations on several interconnection and competition issues have proven to be difficult and time-consuming. This comes as no surprise given the complexity of the issues and in the light of similar experiences in other competitive telecommunicat­ions markets. (Statement, 28 March 1995)

So laying down the ground rules will not, in itself, help to speed up an agreement between an incumbent operator and new entrants, although it will remove barriers by making the process that everyone has to agree to very clear. However, the regulator will be called upon to interpret these ground rules. It is therefore necessary for the regulator to prod the process along by issuing further Statements from time to time for such purpose.