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HKT, Hong Kong regulator at loggerheads over network service suspension

Dispute comes amid efforts to establish a Code of Practice on terminating services for so-called mobile virtual network operators

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Tensions between HKT and Hong Kong’s telecommunications industry regulator heated up last week over the termination of services by two so-called mobile virtual network operators. Photo: David Wong
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Tensions between HKT and Hong Kong’s telecommunications industry regulator heated up last week over the termination of services by two so-called mobile virtual network operators (MVNOs) in the city in the past 18 months.

The Office of the Communications Authority (Ofca), the industry regulator’s executive arm, released a statement on Thursday that blamed HKT, the city’s largest mobile and fixed-line network operator, for the service interruption that affected more than 110,000 mobile subscribers of MVNO license-holders Easycall and CMMobile.

An MVNO license-holder provides services by leasing mobile network capacity from an existing telecommunications operator, typically at wholesale prices, and resells it to consumers at reduced prices under its own brand. HKT was the contracted host network of those two companies.

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Citing the most recent case involving CMMobile, Ofca criticised HKT for only giving less than 10 hours’ notice before terminating its wholesale service.

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HKT has maintained that it gave ample opportunity for both Easycall and CMMObile to advise their customers of impending service termination in light of each firm’s missed payments, which resulted in the accumulation of a combined HK$90 million debt to the operator.

“I think the Ofca is being very selective, totally ignoring the weeks of consultation and engagement previous to the suspension of service,” a spokesman for HKT told the South China Morning Post.

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