The government is standing firm on proposed merger and acquisitions (M&A) regulations for the telecommunications industry despite a last-ditch bid by some operators to force changes.
Permanent Secretary for Information Technology and Broadcasting Francis Ho Suen-wai yesterday rejected calls by eight telecoms carriers to relax the proposed M&A threshold trigger contained in the regulations from 15 per cent to 30 per cent.
'A 15 per cent threshold is in line with international practice. If we set the threshold at 30 per cent, it will be too relaxed and appear that we're not being serious [about anti-competition in the telecom sector],' said Mr Ho.
Under the proposed Telecommunications (Amendment) Bill on M&A, any change of 15 per cent or more in the shareholding of a telecoms operator would be subject to regulatory approval.
The Office of the Telecommunications Authority (Ofta) would investigate whether the deal would lessen competition in the telecoms sector before deciding whether to give the go ahead.
The joint effort by the carriers to force a change in the legislation comes less than a month before the bill's scheduled second reading in the Legislative Council, on July 2.
If the operators gather enough support from Legco members, they could further delay the passage of the bill.
