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

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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.

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