|
Consumer Council's Submission to the Office of the
Telecommunications Authority on Licensing Framework for Unified
Carrier Licence (March 18, 2008)
PDF version
- The Consumer Council (CC) welcomes the opportunity to express
its views on the proposals, including the special conditions
("SCs") of consumer interests to be attached to a Unified Carrier
Licence (UCL) and the arrangement for migration of existing carrier
licences to UCL under the licensing framework for the UCL.
- With market and technological developments, fixed-mobile
convergence (FMC) is emerging which blurs the distinction between
fixed and mobile networks. It will be necessary for the regulatory
environment to remain conducive to the emergence of FMC, and the
introduction of the UCL can facilitate the provision of converged
telecommunication services in the Hong Kong market.
Special Condition
of Compliance with Codes of Practice (SC1)
- CC supports the proposed SC1 under which the
Telecommunications Authority (TA) may issue guidelines or codes of
practices (CoPs) to give practical guidance to carrier licensees to
address public concerns on consumer-related issues.
- Whilst CC is aware of that some operators challenged the
expansion of TA's powers and jurisdiction beyond the
Telecommunications Ordinance ("the Ordinance") into unspecified
consumer issues, CC supports TA's broad interpretation of section
7A of the Ordinance that the TA may attach special conditions
consistent with the Ordinance and not inconsistent with the
prescribed general conditions. For that matter, CC believes that
s7(7) of the Ordinance provided for conditions to be prescribed
which may relate to the manner of service provision, the
prohibition of unfair market practice and compliance with
directions, guidelines, codes of practice, regulations and the
Ordinance. This would also lend support to TA's jurisdiction. As TA
indicates that similar SCs were already included in certain
licences issued in 2005 and 2006, CC considers that SC1 should
apply in the future to all licensees under the UCL regime.
- The scope of regulation under the proposed SC1 is
comprehensive, covering various aspects of the relationship between
consumer and licensees. As the proposed SC1.3 requires consultation
by the TA before issuing any COP or guidelines, CC considers that
there will be appropriate engagement of the industry. In those
circumstances, SC1 should be put in place to protect the interests
of consumers.
- CC believes it is important to ensure there is adequate
protection conferred by the Ordinance on consumers against unfair
trade practices, just as for other industries. In CC's recently
published report entitled "Fairness in the Marketplace for
Consumers and Business", CC suggested amending the Ordinance to
cover unconscionable or improper conduct in providing or acquiring
telecommunications networks, systems, installations, customer
equipment or services including (but not limited to) promoting,
marketing or advertising network, system, installation, customer
equipment or service. CC also recommended that either s.7M or s7(7)
should be amended to the effect that it expressly covers all unfair
trade practices before, during and after transaction, and the
conduct of the licensee and its agents or employees.
- CC considers that the suggested amendments will empower the TA
to tackle unfair trade practices, other than deceptive and
misleading conduct under the current s.7M or the other section, but
until such amendment is made, the proposed licensing control
mechanism in the COPs to be issued by the TA under SC1 is necessary
to protect the interests of consumers of telecommunications goods
and services.
Special Condition
on Service Contracts and Dispute Resolution (SC 36)
- In recent years, complaints about telecommunications
services have remained at the top of CC's list of complaints,
raising serious concern that the telecommunications service
contract disputes are not handled by operators effectively.
Independent complaint handling through an alternative dispute
resolution regime and a mandatory approach to ensure fairer
contract terms are needed.
- CC welcomes the way forward proposed under SC36 that TA can
issue codes of practice in respect of the requirements to apply in
the contracting of telecommunications services to customers, and
such requirements include the format and terms and conditions of
the service contracts, and submission of consumer disputes for
handling under an independent dispute resolution scheme which may
be approved by the TA.
New License Fee
and Migration of Existing Carrier Licence to UCL
- CC noted that the TA proposes to adjust the
subscriber-based fee for Fixed Carrier Licence from $7 and Mobile
Carrier Licence from $18 to $8 under UCL. At the same time it also
suggests to introduce a fee of $3 for each subscriber number
allocated to the holder of a UCL, regardless of whether the number
has been assigned to end customers or not.
- CC previously gave support to the idea of using allocated
number resources as basis for USC sharing in the belief that it
could be an effective measure to prompt operators to make better
utilization of the number resource given the tight number resource
in its previous submission on the review of regulatory arrangement
of Universal Services Arrangement. CC considers that the
restructure of UCL fee will provide operator with the incentive to
use numbers more efficiently. It may also help prolong the current
8-digit numbering plan and defer migration to a longer-digit
numbering plan that will save cost and avoid causing inconvenience
to the whole society.
- Notwithstanding that the number fee is likely to increase the
service charges payable by customers and the number fee, if
imposed, could be charged to end customers, CC believes operators
will think twice before shifting the number fee to end customers
under the highly competitive telecommunications market, lest they
will lose their market share. However, CC is concerned that the
imposition of number fee would be used as focal point or
facilitating coordination between operators to increase service
fees. CC urges TA to take necessary measures to prevent operators
from using the imposition of the new fee structures as a
facilitating mechanism to coordinate their fees increase when
operators migrate from existing carrier license to UCL.
|