Leading telecommunications operators are presenting a united front against an Office of the Telecommunications Authority (Ofta) proposal to impose restrictions on mergers and acquisitions (M&A), arguing market forces should be allowed to play their part.
On Monday, chief executives of major mobile firms - including Hutchison Telecom, CSL and Sunday - will challenge Ofta's proposed law change in a Legco debate.
The crux of Monday's proceedings centres on whether it is necessary to codify merger and acquisitions activity in the telecoms industry and moderate an excessive concentration of ownership that could then disadvantage consumers.
The proposed legislation was seen as an effort to limit the market power of dominant firms such as fixed-line carrier PCCW and Hutchison Telecommunications.
Complaints about the legislation, unveiled in May, have focused on Ofta needing to pre-approve telecoms' share transactions involving stakes of more than 15 per cent.
In the original proposal, approval would be needed for a merger that resulted in a firm's market share exceeding 40 per cent. But that stipulation was relaxed. Though the regulator retains the power to overrule the transaction, there is now no mention of a market-share criteria.
Hutchison Telecom managing director Agnes Nardi said there was no general competition law in Hong Kong, and the mobile industry did not need one.
