Telecommunications Hub

A Fully-liberalised Market and a Regional Telecommunications Hub

Telecommunications is a key pillar industry in Hong Kong's economy and business environment. Hong Kong is ideally positioned to serve as the telecommunications hub of Asia. We are one of the most open markets in the world with no foreign ownership restrictions resulting in a large number of leading international carriers, vendors and equipment manufacturers to set up their regional offices in Hong Kong.

Service-based demand

The demands of a service-based economy combined with effective regulation have created a sizeable telecommunications market that takes the lead in Asia in many areas, providing exceptional value in a highly competitive market. Hong Kong's demanding consumers encourage product innovation and the market is often used as a test-bed for new products.

Effective Regulation

The telecommunications sector is fully liberalised. There are no restrictions on foreign ownership and the number of operators is determined by the market. The availability of non-exclusive licences for various telecommunications will facilitate market entry and further promote investment in both wired and wireless area. The Government has set up a number of bodies to ensure the telecommunications market remains the pro-competition and pro-consumer regulatory framework crucial for a successfully liberalised market. The Office of the Telecommunications Authority (OFTA) regulates and facilitates the development of the sector.

Hong Kong has one of the most open telecommunications markets in the world.

Funding Support and Strategic Infrastructures

The US$5 billion Innovation and Technology Fund supports research and development collaboration projects that contribute to innovation and technology upgrading in nine focus industries including communication technologies. Hong Kong Cyberport, the IT flagship supports by a world class telecommunications infrastructure and a wide range high tech facilitates, together with leading edge educational and living facilities. Hong Kong Science and Technology Park offers state-of-the-art infrastructure to facilitate research and development in four industry sectors including telecommunications. It also operates technology-based incubation programmes to nurture start-ups.

Closer Economic Partnership Agreement (CEPA)

The Closer Economic Partnership Arrangement (CEPA), which took effect at the beginning of 2004, provides Hong Kong with additional and exclusive Mainland market access benefits. This free trade agreement between Hong Kong and Mainland China ensures that Hong Kong companies will benefit from the opening-up and liberalisation of the Mainland market beyond china's commitments to the World Trade Organisation (WTO). The Mainland has allowed Hong Kong service suppliers to establish joint venture enterprises in the Mainland to provide the following five types of value-added telecommunications services : (1) Internet data centre services (2) Store and forward services (3) Call centre services (4) Internet access services (5) Content services. Hong Kong service suppliers' share of these ownerships in these joint ventures cannot exceed 50% and there is no geographic limitation.

Gateway to China

China's 1.3 billion population and rapid economic development make it the fastest growing major telecommunications market in the world. There is huge room for growth as the mobile user penetration rate is growing at a dramatic rate.

Being part of the Greater Pearl River Delta region, Hong Kong is a gateway to China where rapid economic development makes it the fastest growing telecommunications market in the world.