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HK Telecom Net service 'unfair'

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Hongkong Telecom's new Internet service continues to enjoy unfair competitive advantages over other companies despite conditions set out by the Government, claims the head of a local Internet service provider.

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HKNet chairman Lee Wai-kit backed a Consumer Council recommendation for the creation of a new civil service secretary to oversee broadcasting, telecommunications and emerging communications technologies such as the Internet and video-on-demand (VOD).

Hongkong Telecom IMS received a PNETs licence on April 10 for its Netvigator Internet service provider from the Office of Telecommunications Authority (Ofta).

According to an Ofta letter in early April, Hongkong Telecom's subsidiaries, including Hongkong Telecom, Hongkong Telecom International, and Hongkong Telecom CSL, were co-operating more closely than was allowed under fair competition regulations.

'We are aware that some common core functions of the HKT group such as finance, personnel and marketing are carried out through the holding company,' Ofta said in the letter.

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Ofta granted a licence to Hongkong Telecom IMS, which is operated by the CSL division, on condition the subsidiary had to operate at arm's length from other companies in the Hongkong Telecom group.

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