Hutchison, SmarTone end video-call fee row
Mobile phone rivals Hutchison Telecom and SmarTone Telecommunications yesterday settled their differences on interconnection charges for video calls, reaching an agreement without the need for intervention from the industry regulator.
The two third-generation (3G) mobile service providers announced that customers from either operator can make and receive inter-network video calls.
According to a source close to Hutchison Telecom, the city's largest 3G operator with more than 380,000 subscribers will waive user surcharges on its customers who receive video calls from SmarTone users.
However, Hutchison Telecom said it would charge users $1.50 per minute to make video calls to SmarTone customers.
SmarTone in a press release said that its customers paid $1.50 per minute for making video calls and 50 cents per minute for receiving video calls from other operators.
SmarTone and Hong Kong CSL, a 3G operator wholly owned by Australian telecoms giant Telstra, reached an agreement last month on inter-network video call service.
CSL is in the midst of talks with Hutchison Telecom on a similar inter-network video call arrangement but no agreement has yet been reached, according to sources.
SmarTone and Hutchison Telecom started negotiations on the level of surcharges and other issues related to inter-network video call service early this year.
However, they blamed each other for hindering an agreement.
SmarTone requested a determination from the Office of the Telecommunication Authority (Ofta) in July this year in response to suggestions from Hutchison that it might charge its customers up to $5 a minute for making video calls to its rivals' customers.
'Hutchison was very flexible on this issue after we approached Ofta for help,' said a source close to SmarTone.
He said the company would now withdraw its application for a determination from Ofta.
'It is a basic service for all 3G users to have video calls, no matter from which operator,' said the source.
