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Hong Kong

PCCW, HK Telecom file lawsuit against government's 'unreasonable' fees

Telecommunications companies challenge government's 'unreasonable' licence fees which they say allow it to reap huge profits at their expense

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PCCW, HK Telecom file lawsuit against government's 'unreasonable' fees
Joyce Man

Hong Kong Telecommunications (HKT) and PCCW-HKT Telephone have mounted a legal challenge to the government's licence fees, saying reductions which take effect today do not go far enough.

The companies filed an application for judicial review in the High Court on Wednesday against the secretary for commerce and economic development and the broadcasting and telecommunications regulator, the Communications Authority.

They say the "unreasonable" rates they and other licensees have been charged have resulted in the government getting "far in excess" of what it should.

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The government earlier announced that it would reduce annual connection fees from HK$8 to HK$7 per customer for carrier, paging and services-based operator licensees.

The two companies, which are joint holders of a unified carrier licence, say they are backed by Wharf T & T, Hutchison Global Communications, Hutchison Telephone, SmarTone Communications, SmarTone Mobile and CSL. These and three other companies - New World Telecommunications, Hong Kong Broadband Network and China Mobile - have been listed as interested parties to the lawsuit.

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The Commerce and Economic Development Bureau and the Communications Authority declined comment, citing the legal proceedings.

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