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Mobile-phone operators want fair play

As services converge, they say fixed-line companies should lose their advantages

Mobile-phone operators are demanding a 'level playing field' with their fixed-line rivals, saying a plan by regulators to issue broadband wireless licences will put the two camps in direct competition.

The Office of the Telecommunications Authority (Ofta) is preparing to issue licences for wireless technologies such as WiMax that will erase the few remaining boundaries between fixed-line and mobile services.

Before this happens, executives from SmarTone Telecommunications Holdings and CSL want to be given advantages being enjoyed by their fixed-line counterparts, such as the right to extend their networks to buildings without charge.

In addition, they want Ofta to do away with the 4.36 cents per minute one-way interconnection charge that mobile operators must pay fixed-line operators for connecting to their networks.

'We are not afraid of competition, but the only thing we are asking for is this: we want fair competition in the market,' CSL director of business development Tony Seeto said.

At present, Ofta is seeking the industry's views on the future licensing framework for broadband wireless access (BWA) deployment. While Ofta is neutral on which technology to adopt, the market is widely expecting that WiMax, a superior upgrade of Wi-fi hotspots, will be deployed in the city.

Supporters of WiMax, which promises true broadband transmission speed of up to 70 megabits per second (Mbps), say it can support full mobility services by 2008-09. The current versions of WiMax can handle only limited mobility.

'I don't think BWA should be limited to fixed-line licensees only,' said Mr Seeto, opposing a proposal by Ofta in its consultation, which ends on March 14.

Competition between fixed-line and mobile operators is intensifying as the two services converge. Operators that today offer voice and broadband services over a fixed network can tomorrow provide the same services to portable devices such as laptop computers, mobile phones and personal digital assistants.

A change in the licensing regime is needed to keep pace with swiftly changing technology and Ofta has said that this year it will deliberate on a unified system under which operators will have the freedom to offer mobile and fixed services with one licence.

A review of how scarce spectrum resources can be better allocated is also being conducted this year.

Meanwhile, Ofta has said it will issue at least seven BWA licences, preferably to fixed-line licence holders.

'I think it is very important that if Ofta must restrict BWA to fixed-line operators only and exclude mobile, it must state clearly on its licence conditions that they cannot offer any mobility services,' said Stephen Chau, SmarTone's chief technology officer.

Mr Chau said it was unfair that only fixed-line operators had the right to connect their network to buildings without charge, while mobile operators had to pay rent to their owners to put a cell site in a building.

'It's a matter of principle that mobile operators should be given the same rights ... now that new technology like WiMax is giving fixed-line operators the prospect of offering mobile services like us,' he said.

What they want

Right to connect networks to buildings for free

Access to new BWA services when licences are issued

End to 4.36 cents per minute one-way interconnection fee

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