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2 classes of Net-phone licences 'by year's end'

Critics say the regulator's new two-tier system could confuse consumers

A plan to introduce new telecommunications licences to regulate voice calls placed over the internet should be in place by the end of this year, bringing fresh competition into the city's already crowded telecoms sector.

The Office of the Telecommunications Authority (Ofta) yesterday announced the timeframe for its plan to create two licence classes for so-called 'voice over internet protocol' (VoIP) services, with different levels of service quality.

Customers of so-called class one operators could expect services comparable to those of a traditional fixed phone line, such as access to 999 emergency services and a back-up electricity supply in case of a power cut.

Class two operators - such as internet firms - would not be required to provide such services.

However, the plan for a two-tier system has raised fears of greater confusion in the marketplace, with consumers being unsure of what they are buying. Industry players say Ofta should ensure that operators make clear to consumers exactly what they are buying - especially when pitching VoIP services as a replacement for the traditional fixed phone line.

Raymond Mok Wai-man, vice-president of finance and business administration at Wharf T&T, said he was in favour of the two-tier system.

'We believe that Ofta has adopted a two-class licencing approach with the aim of telling consumers they can expect a better quality service with class one, and sub-optimal services from class two,' he said.

But critics say such a classification would not necessarily be a good indicator of service quality. Wharf T&T, under its existing fixed-line licence, offers VoIP over the cable network of its i-Cable Communications.

Because the cable network is shared, the service quality varies according to how many people are using it.

Last week Ofta said it had received more than 500 complaints about Wharf T&T's VoIP service, with users reporting an inability to make or receive calls, poor voice quality and frequent interruptions. Ofta also warned the malfunctions could affect the reception of i-Cable's pay-television services.

Hong Kong consumers already enjoy many benefits of VoIP - such as inexpensive or free long-distance voice calls - without the need for government regulation.

Instant messaging applications, such as MSN Messenger, Yahoo! Messenger, ICQ and Skype, provide computer users with free chat services.

Ofta's proposals would give new companies access to Hong Kong phone numbers now controlled by the existing telecoms operators.

These numbers are needed by internet firms if they are to offer VoIP services that can be accessed through traditional fixed lines or mobile phones.

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