A government proposal to build a wireless broadband network in all its premises has raised concerns whether it should compete in the market with companies that provide similar services.
Financial Secretary Henry Tang Ying-yen said in his Budget speech that the government would spend about HK$210 million to offer a free wireless broadband service, or Wi-fi, in all government buildings and facilities. The investment would help Hong Kong to strengthen its position in the telecommunications sector, he said.
The move would bring the government into competition with existing providers such as PCCW, which operates about 1,500 hot spots, and Y5 Zone, with about 280 hot spots.
'It is not appropriate for the government to subsidise such services by using public money,' said Douglas Li, chief executive of SmarTone-Vodafone, the mobile arm of Sun Hung Kai Properties.
'On the one hand, mobile operators pay a spectrum usage fee for their mobile services. On the other hand, the government uses this money to offer the free Wi-fi service. That should be a contradiction.'
The government move was due mainly to visitors to last year's International Telecom Union conference, hosted by Hong Kong, complaining that the city did not have sufficient wireless internet connectivity, an industry source said.
'They are facing huge pressure after the ITU, so it would be a move to improve Hong Kong's image,' the source said. Even so, 'we don't understand why the government should be a player in the market', he said.
