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SCMP Reporter

Hong Kong's telecommunications regulator has over-deregulated the industry, resulting in too much competition and discouraging further investment, according to  the head of NTT Com Asia.
The Office of the Telecommunications Authority (Ofta)  liberalised the fixed-line telephony business to allow unlimited players, a policy the Japanese carrier does not agree with.
Kenji Sakata, managing director of NTT Com Asia, the Greater China operation arm of NTT Communications, said it would not apply for a fixed-line licence in Hong Kong as it was not worth the investment.
'We find no incentive to apply for a licence because it requires a lot of investment in network,' Mr Sakata said.
'It is not worthwhile for foreign companies to invest in building networks.'
NTT Com Asia has an Internet external fixed telecommunications network services licence  in Hong Kong, but has yet to make a profit.
'There is too much deregulation and too many licences. A  100 per cent free entry into the [fixed-line] market is not always right,' Mr Sakata said.
His  comments came the day after Ofta chief Anthony Wong Sik-kei spoke about 'over-investment' in fixed-line networks, saying Hong Kong had more infrastructure  than it needed, which meant a grim outlook for the fixed-line sector.
 Mr Sakata said Mr Wong was to blame for the over-deregulation that had brought the poor industry prospects.

NTT Com Asia joins PCCW  in criticising Ofta for introducing too much competition.  Mr Sakata said  over-competition had downgraded service quality, which would eventually hurt consumers.

He believed PCCW's services had deteriorated over the years.



HK telecoms over-deregulated