Company seeks Ofta clearance to provide fixed-line services and cable connection to internet rivals
I-Cable Communications wants to provide fixed-line telephone services over its existing cable network and lease capacity to rival internet service providers.
The company's intentions were published yesterday in a public consultation paper from the Office of the Telecommunications Authority (Ofta), which disclosed that the cable television operator had applied for a 'declaration of non-dominance' for fixed-line telephony and cable modem access line (CMAL) services.
Ofta defines dominant providers as those 'able to act without significant competitive restraint from its competitors and customers'. Dominant providers must seek approval from Ofta on prices and other terms before it can offer services to customers.
Should Ofta grant non-dominant status to i-Cable, it would be permitted to sell combined fixed-line and cable television services to end-users and other providers on its own terms, without prior approval from the regulator.
Ofta requires PCCW, a designated 'dominant carrier' for fixed-line telephony services, to offer its installed capacity to competitors. I-Cable, however, has successfully defended sole use of its hybrid-fibre coaxial network, accessible to 95 per cent of Hong Kong households, on grounds that it employs a proprietary technical standard. This has been criticised in the past by PCCW and other rivals.