Telecommunication Infrastructure & Regulation


Overview

    Hong Kong has long enjoyed advanced and high-quality telecommunications structure and services. Telephone density, submarine cables, size of Integrated Services Digital Network (ISDN) and Digital Subscriber Line (DSL) subscriptions, Internet monthly access cost and connectivity to the international Internet backbone can define the quality of telecommunications structure and services. The factors improve citizens’ quality of live and attract international businesses to consolidate their regional operations in Hong Kong.
 
Infrastructures
Liberalization Status
Comments
Public telecommunication network Fully liberalized
N/A
Local networks for voice telephony Fully liberalized
N/A
Leased Lines Fully liberalized
N/A
Non-telecommunicationinfrastructure (railways, utilities, highways, etc.) Partially liberalized Monopoly on mass public transit and highways
Broadcasting and cable TV Fully liberalized  More than 20 major television and radio stations
Voice Telephony
Local communication Partially liberalized(Fully liberalized in January 2003) 3 providers are New World Telephone Limited, New T&T Hong Kong Limited and Hutchison Communications Limited
International communication Fully liberalized Hong Kong Telecom International Limited (now known as Reach Networks Hong Kong Limited) surrendered its exclusive license for in March 1998.
Provision of voice services to cosed user groups Fully liberalized
N/A
Mobile Communication
Analog
N/A
Completely phased out in 1998
GSM digital Fully liberalized (1995)  6 operators provide with 11 networks and 4 digital standards (GSM-900, GSM-1800, D-AMPS, CDMA)
DCS 1800 digital Fully liberalized 
N/A
Paging Fully liberalized  38 companies; Hutchison Paging, ABC and Star has over 80 percent market share
Satellite communications Fully liberalized 12 satellite-based external FTNS licenses granted in 2000
3G services Fully liberalized  4 network licensees with W-CDMA and 4 MVNOs (mobile virtual network operators) using 30% of network licensee capacity
Data Transmissions Fully liberalized
N/A
Value Added Services Fully liberalized The number of licensed IVANS operators stood as 250 by the end of July 2000, of which 202 were (ISPs)
Internet Service Provision Fully liberalized 259 ISPs as of 2001
Equipment Provision Fully liberalized
N/A
No. of Submarine Cables Fully liberalized  5; 7 new submarine cables and 4 new overland cables will be built the next three years
Satellites  Fully liberalized  2 satellite companies were operating a total of 6 satellites in the end of 2001
Sources: CIA 2002 Fact Book; Digital 21 Strategy; Hong Kong 2001 Year Book; Invest HK & the University of Hong Kong

    The telephone density was 730 telephones or 580 exchange lines per 1000 population in 2001; the statistics represent the highest density in Asia. At the end of January 2002, there were 5.7 million mobile phone subscribers with a penetration rate of 84%. Meanwhile, Hong Kong currently has five submarine cables; the city will add seven new submarine cables and 4 new overland cables in the next three years. Chung Hom Kok will be the teleport site for Hong Kong. The site will be developed in two phases. Three sites of Phase I were awarded to tenders in January and November 2000. (18)

    According to Office of Telecommunications Authority of Hong Kong, there were 13,513 Integrated Services Digital Network (ISDN) subscribers as of March 31 2001.There were 270,000 Digital Subscriber Line (DSL) lines in Hong Kong as of June 30, 2001. In a city like Hong Kong, DSL performs well in a large part because of the technologically friendly atmosphere. Competition in providing cable services has not accelerated though. Hong Kong is one of the most wired cities in the world. The majority of competition comes from cable. At around USD 18, Hong Kong’s Internet monthly access is lower than US’s USD 20. In addition, the broadband coverage of business has already reached 100%; such penetration rate is not unusual to Hong Kong’s pro-business environment. (19)

    Hong Kong enjoys the highest level of connectivity to the international Internet backbone in South East Asia. Moreover, the city has received one of the highest total connectivity rating in Asia based on a cumulative penetration rate of main lines, mobile subscribers, ISDN subscribers and Community Antenna Television (CATV) and DSL accounts. All commercial buildings and over 95% of households receive broadband Internet coverage. At 44.1 Gbps, external connectivity is among the highest in the Asia-Pacific region. It will increase by about tenfold in the next two to three years. (20)

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Harrison Chang
The Landscape of IT in Hong Kong
Information Technology Landscape in Nations
Kogod School of Business, American University