Thirteen closer to cable-line nod
The Information Technology and Broadcasting Bureau (ITBB) has issued letters of intent to 13 local and overseas applicants for cable-based external fixed telecommunications network services (EFTNS).
The letters, valid for 18 months, specify that the companies will be granted EFTNS licences after finalising construction and maintenance contracts, and successfully negotiating with business partners and other regulatory authorities.
The companies, which are to set up seven new submarine cables and four new overland cables, will invest $9 billion on infrastructure during the next three years, according to the ITBB.
The ITBB will extend letters of intent for submarine cables to Asia Global Crossing Hong Kong, AT&T Asia/ Pacific Group, BT (Hong Kong), CTI International, Far East Gateway, Flag Telecom Asia, Global One Communications, Level 3 Communications, MCI WorldCom Asia Pacific, NTT Com Asia and PSINet Hong Kong.
It will also give a letter of intent to Far East Gateway for a land cable, along with CLP Telecommunications and Unicom International (HK).
CTI and PSINet have already been awarded EFTNS licences to operate other cable-based services.
Singapore Telecommunications, which has proposed a merger with Cable & Wireless HKT, and Qwest Communications International, a United States broadband Internet provider, were not on the final list.
Nineteen companies applied to start new cable-based services.
Au Man-ho, senior assistant director at the Office of Telecommunications Authority, said companies that were not selected had not indicated they would commit enough capital or technology.
An ITBB spokesman said: 'The new cables will bring a significant increase in bandwidth for external connections, which is a key to Kong Kong's development as a leading telecommunications centre and an Internet and broadcasting hub in the region.' CLP Telecom managing director Michael Price said more competition, especially on the mainland route, would bring substantial savings.
'The liberalisation would help Hong Kong to become a communications hub for the mainland and regional traffic, particularly for the fast-growing Internet protocol traffic,' he said.
TELECOMS