The telecommunications regulator is considering creating a special licence for internet telephony, opening the highly competitive market for voice services to new players such as internet service providers.
At present, fixed-line carriers such as City Telecom offer internet telephony under the terms of their existing licences.
However, in a consultation paper released yesterday, the Office of the Telecommunications Authority (Ofta) envisions creating a less restrictive licence - a move that will significantly lower the barriers to market entry.
'Full application of [fixed-line] conditions might impede the exploitation of new technologies,' the regulator said.
Ofta noted that internet telephony would allow for the entry of pure 'service-based' operators which did not maintain their own broadband networks.
A key issue will be the provision of Hong Kong telephone numbers, which the agency allocates to fixed-line and mobile operators.
City Telecom draws on its existing allotment to assign numbers to subscribers of its internet telephone service, launched in August through its Hong Kong Broadband Network (HKBN) unit. This allows broadband telephone customers to dial traditional subscribers, and vice versa.