Hong Kong Telecom Body Mulls Unified Mobile, Fixed-Line Services"

HONG KONG -(Dow Jones)- Hong Kong's telecommunications regulator said Tuesday it is considering unifying the fixed-line and mobile networks in the city, which may involve issuing a new kind of telecom license that allows operators to offer the two services flexibly.

M.H. Au, director-general of The Office of the Telecommunications Authority, told reporters in a briefing that the regulator will begin to conduct a "critical review" this year on the convergence of the two networks and services, and its impact on the existing regulatory framework.

"The convergence of the two services is an emerging trend," Au said. He said the existing regulatory framework, which treats fixed and mobile networks and services differently, may become unsustainable eventually.

The OFTA will examine an existing structure whereby mobile operators need to pay interconnection fees for calls connecting fixed lines and mobile lines. Such a practice has been in place since the introduction of mobile phone services in the 1980s in Hong Kong.

The regulator will also look into the technical feasibility as well as costs and benefits of putting together the numbering system of the two networks.

It said it is planning consultations on a new kind of telecom license that allows operators to flexibly offer mobile, fixed, or nomadic network services like broadband wireless access, and whether current laws need changes to meet this new challenge.

"We expect such discussions to raise a lot of controversies, as the interests of operators are at stake," said Au.

He said while it is natural for operators to seek to safeguard their commercial interests, the regulator's role is to ensure a healthy telecom industry and uphold consumers' interest.

Au didn't give specific time frame for the discussions, or how long the process should take.

-By Julie Wang, Dow Jones Newswires; 852-2802-7002; julie.wang@dowjones.com

-Edited by Sharon Buan

(END) Dow Jones Newswires"

Posted to the site on 25th January 2005