Communications Authority accused of double standards on competition

Economists and lawmakers slammed the government for reassigning the third-generation mobile phone spectrum to encourage market competition, while limiting the number of free-TV licences to avoid excessive competition.

The Communications Authority said yesterday the government would take a third of the spectrum from each of the four current operators and put it up for auction.

The authority's chairman, Ambrose Ho Pui-him, in explaining the decision, said the government was keen to encourage market competition.

"We are of the view that this option is more likely to encourage competition and allow new investment to enter the local market. It is more likely to promote innovative services from new 3G spectrum assignees and the incumbents," Ho said.

Susie Ho Shuk-yee, permanent secretary for commerce and economic development, said different policies applied to TV licensing and the 3G spectrum auction and they were entirely different exercises.

The Commerce and Economic Development Bureau released a statement saying essentially the same thing - that different procedures applied to the two exercises and that no submissions to the Executive Council were required concerning the reassignment of 3G spectrum.

But both economist Dr Andy Kwan Cheuk-chiu and Civic Party lawmaker Claudia Mo Man-ching criticised the government for what they said were contradictory policies on competition in the 3G mobile and free-television markets.