Court denies PCCW appeal against two-way interconnection tariffs
The Court of Appeal has thrown out an appeal by PCCW against an Office of the Telecommunications Authority decision to implement charges for fixed-mobile interconnections.
In the latest round of legal ping-pong between the dominant fixed-line service provider and the regulator, the decision means a two-way payment arrangement for telephony traffic between mobile-telephone operators and fixed-line operators is upheld.
The arrangement is a core part of fixed-mobile convergence, which brought an end to a scheme stipulating that mobile-telephone operators pay as much as HK$600 million annually in interconnection charges to PCCW for traffic to and from its network. The scheme did not require PCCW to pay mobile-telephone operators.
Fixed-mobile convergence, implemented two years ago, requires PCCW to negotiate with mobile-telephone operators on commercial deals over tariffs for traffic to and from their networks.
Ofta aims to create a level playing field through fixed-mobile convergence.
With the end of the two-year transition period on April 27, the telecommunications watchdog will be empowered to intervene in circumstances where no tariff agreement has been reached and there is anti-competition conduct.
In a ruling yesterday, the court said although the regulator might exercise its right to intervene and that 'may well have a substantial economic impact' on PCCW, it did not make PCCW an 'aggrieved party' for the purpose of invoking an appeal under the existing jurisdiction.
The court said the implementation of fixed-mobile convergence encouraged the question of whether there had been any anti-competition behaviour, but the court said it saw no indication of anti-competition behaviour by PCCW.
PCCW was suspended from trading yesterday, pending a statement about another court hearing in relation to its privatisation plan. The stock last traded at HK$3.98 on Wednesday.
