Updated at 1.01pm: Hong Kong?s prospects lay in the convergence of talent, capital, logistical support and information, Chief Executive Donald Tsang Yam-kuen said on Wednesday. Discussing the future of information technology, media and the internet in his second policy address, Mr Tsang said the government intended to continue promoting the application of information technology. ?In terms of e-Government, we will provide more user-friendly integrated public services through a one-stop portal,? the chief executive pledged. He noted that Hong Kong was a forerunner in promoting media convergence with a single platform supporting telephony, broadcasting and internet access services (triple-play). ?Media convergence technology and business models are rapidly developing,? he added. ?To tie in with the transformation of traditional telecommunications services into integrated information services, we consulted the public early this year on the reform of the regulatory regime and proposed merging the functions of the Office of the Telecommunications Authority and the Broadcasting Authority to form a new Communications Authority,? Mr Tsang said. ?We aim to adopt a regulatory framework to promote innovation and competition to a level on par with advanced international standards,? he added. Mr Tsang said consumers stood to gain from these developments. ?We are prepared to introduce legislation in the 2006-07 legislative year to effect the establishment of the new Communications Authority.? He said the application of new wireless communication technologies had spread rapidly and widely. ?We will carry out public consultation by the end of [this year] on the policy of radio spectrum management. We aim to ensure, through market forces, more flexible and effective utilisation of the radio spectrum as a public resource, facilitating technological advance and the evolution of new business models,? Mr Tsang said. ?Future competition in global production will come down to technology and design. The application of innovative technology can enhance product functions, whilst design can help promote original brand name development as well as sales,? he explained. Mr Tsang said the government was keen to invest in research infrastructure and manpower development and promote design. ?We also encourage collaboration between business and research institutes to conduct joint applied research, enhance the technological level of industries and develop high value-added products. ?With funding support from the government?s Innovation and Technology Fund, research and development centres have been set up in the fields of information communications technologies, logistics and supply chain management, automotive parts and accessory systems, nanotechnology and advanced materials, textiles and clothing.? He said these were areas where Hong Kong was strong. ?In addition, we have established an Integrated Circuit Design and Development Support Centre at the Science Park, as well as the Digital Media Centre and the Wireless Development Centre at the Cyberport.? Mr Tsang said the government would also earmark HK$100 million over five years for the Hong Kong Design Centre. This would help industry maximise designs and develop brand names.