Communications Authority Press Release (June)

This press release summarises the Communications Authority ("CA")'s decisions following its 53rd meeting in June 2016:

More Efficient Utilisation of the 8-digit Numbering Plan

Having carefully considered the views and comments received from the industry and interested parties during the public consultation held between 29 October and 29 December 2015, the CA decided to adopt all the five proposed measures set out in paragraph 4 of the consultation paper to meet the demand for additional mobile numbers through more efficient utilisation of the 8-digit numbering plan.  Today, the CA promulgates in a Statement on more efficient utilisation of the 8-digit numbering plan ("the CA Statement"), its decisions to implement the five measures in three phases, as follows -

  1. Phase 1 to commence on 1 January 2017 (i.e. about six months from the issue of the CA Statement by the CA today) and the following measure shall be implemented -
    1. Raising the threshold of utilisation rate for allocation of additional numbers to operators from 70% to 75% (under Part one of Measure 4).
  2. Phase 2 to commence on 1 July 2017 (i.e. about one year from the issue of the CA Statement) and the following measures shall be implemented -
    1. Releasing the currently vacant number blocks in the "7(0-3)X" levels (from 70XX XXXX to 73XX XXXX) for allocation to mobile services (under Part one of Measure 1);
    2. Releasing numbers in the "4X" level (i.e. 4XXX XXXX) for allocation to mobile services (under Measure 2);
    3. Releasing vacant numbers in the "8(1-3)X" levels (from 81XX XXXX to 83XX XXXX) for allocation to mobile services (under Measure 3);
    4. Raising the threshold of utilisation rate for allocation of additional numbers to operators from 75% to 80% (under Part two of Measure 4); and
    5. Releasing most of the Special Number Blocks for normal allocation (under Measure 5).
  3. Phase 3 to commence on 1 July 2021 (i.e. about five years from the issue of the CA Statement) and the following measure shall be implemented -
    1. Relocating some of the existing paging numbers to certain specific number blocks in the "7(1-3)X" (from 71XX XXXX to 73XX XXXX) levels and subsequently releasing the vacated number blocks in the "7(1-3)X" levels for allocation to mobile services (under Part two of Measure 1).

Following full implementation of the five measures in three phases, a total of 15.72 million numbers will become available for allocation to mobile services and a considerable amount of numbers to other telecommunications services.  As a result, it is expected that the life span of the existing 8-digit numbering plan will be extended by around 10 years to 2029. 

The CA will continue to monitor the development of telecommunications market and the demand for telecommunications numbers, and will in due course engage a consultant to study the longer term development of the numbering plan in Hong Kong, including whether there is a need to migrate to a longer digit numbering plan.

For details, please refer to the CA Statement on the subject, which is available at the CA's website.

Contravention by Hong Kong Mobile Television Network Limited ("HKMTV") of its Unified Carrier Licence No. 041 ("Mobile TV Licence") in the Provision of Broadcast-type Mobile Television Service ("Mobile TV Service")

The CA decided that HKMTV was in breach of (a) General Condition ("GC") 5.1 and Special Condition ("SC") 31.1 of its Mobile TV Licence for the suspension of its Mobile TV Service between mid-March 2014 and mid-January 2015; and (b) SC 30.1 of its Mobile TV Licence, for its failure to provide information to customers as required there under, including instructions as to how customers may access the Mobile TV Service, when the Mobile TV Service was provided from mid-January 2015 to mid-November 2015. 

Taking into account the nature and circumstances of the breach and HKMTV's representations, the CA decided that HKMTV should be advised to ensure compliance with the licence requirements, in particular with regard to GC 5.1, SC 30.1 and SC 31.1, and to make efficient use of spectrum at all times during the remaining validity of the Mobile TV Licence.

Cancellation of the Fixed Carrier Licence ("FCL") held by Asia Television Limited ("ATV")

The CA decided to cancel the FCL held by ATV with effect from 1 September 2016. 

ATV's FCL was issued under the Telecommunications Ordinance (Cap. 106) ("TO") under which ATV was assigned frequencies for it to operate its telecommunications network for providing its domestic free television programme services ("free TV services") under the Broadcasting Ordinance (Cap. 562).  Following the expiry of ATV's free TV licence and the withdrawal of the frequencies specified in ATV's FCL on 2 April 2016, ATV was no longer eligible to hold the FCL under the TO for the purpose of operating the telecommunications network for providing its licensed free TV services.  Furthermore, ATV has failed to pay the annual fee in relation to its FCL for the licence year 2015/2016.  In light of the above, the CA earlier made a provisional decision to cancel the FCL of ATV with effect from 30 June 2016.

The CA informed the Provisional Liquidators ("PLs") of ATV on 23 March 2016 of its provisional decision concerning the cancellation of ATV's FCL and invited ATV's representations.  In May 2016, the PLs requested the CA to defer the cancellation of ATV's FCL to 1 September 2016 on the grounds that ATV had a large number of transmitting equipment at 40 remote transmitting sites and that the court's authorisation was required for the PLs to dispose of the transmitting equipment.  Taking into account the recent court order on and the lead time required for the disposal of ATV's interests in the transmission equipment of its television transmission networks, the CA decided to accede to the PLs' request and made a final decision to cancel ATV's FCL with effect from 1 September 2016 pursuant to section 34(4) of the TO.

The CA to Conduct Research and a Survey on Indirect Advertising and Sponsorship in Free to Air Television Services

The CA notes that its recent decisions on the complaint cases concerning indirect advertising and product sponsorship in TV programmes and the responses of the concerned free TV licensee, viz. Television Broadcasts Limited ("TVB"), have generated much discussion in the community and the media.

Arising from the CA's discussions on the matter earlier in the year, and in light of the changing landscape of the local television market with the entry of new free TV licensees, the CA decided to expedite the research it is conducting on the regulation of indirect advertising and sponsorship over free TV services in overseas jurisdictions.  In tandem, the CA also decided to make preparations for a survey with the objective of gauging the Hong Kong community's attitude and views towards the existing regulatory regime.  Outcome of the research and survey would facilitate the CA's consideration of the way forward with the regulatory regime governing indirect advertising and sponsorship.  

Meanwhile, proposals from TVB regarding the relevant provisions governing indirect advertising are awaited, following the CA's repeated invitations and a more recent reminder from the Commerce and Economic Development Bureau.

Communications Authority
Secretariat

24 June 2016

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