Sunday, April 26, 2009

Hong Kong SAR: Fixed-mobile interconnection charges are no longer to be regulated with bill and keep the preferred option

[OFTA] The regulatory guidance on the fixed-mobile interconnection charge in favour of the mobile party's network pay model will be withdrawn April 27 when the two-year transition period ends.

The Office of the Telecommunications Authority announced today the charge for fixed-mobile interconnection will then be settled among fixed and mobile operators by commercial agreements without any ex ante regulatory intervention.

The authority said a number of major operators have reached commercial agreements or understanding for the post transition period.

According to information filed with the authority so far, among all the agreements the parties agreed to exchange traffic with each other without the interconnection charge. This indicates the so-called "bill and keep" arrangement is preferred.

The authority encourages operators who have not yet reached agreements to conclude their negotiations as soon as possible. It also reminds operators to observe their licence obligations to interconnect and provide a good, efficient and continuous service.

Interconnection charge to be de-regulated

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