Hong Kong’s Office of the Telecommunications Authority announced that the regulatory guidance on fixed-mobile interconnection charge in favor of the mobile party’s network pay model will be withdrawn as planned when the two-year transition period ends. The interconnection charge for fixed-mobile interconnection will thereafter be settled among fixed and mobile operators by commercial agreements without any ex ante regulatory intervention.
After carrying out an extensive regulatory review and public consultation exercise involving all industry stakeholders, OFTA announced on April 27, 2007, the decision to withdraw that regulatory guidance, subject to a transitional period of two years which was intended to enable mobile phone network operators and fixed network operators to negotiate new FMIC arrangements. The de-regulation of FMIC was consistent with the market-driven policy adopted by the government in Hong Kong and removed regulatory asymmetry which was not conducive to the development of fixed-mobile convergence.
The statement said, “The Telecommunications Authority is pleased to see that in order that they may operate in the market with business and regulatory certainty, a number of major players have reached commercial agreements or understanding for the post transition period. This commercial outcome without regulatory intervention is commendable, and it demonstrates that a market solution for FMIC is indeed feasible and achievable.”