Académique Documents
Professionnel Documents
Culture Documents
CONSULTATION PAPER OF
INTRODUCTION
Companies
AT&T Global Network Services Hong Kong Ltd.
China Resources Peoples Telephone Company Limited
CM Tel (HK) Ltd.
e-Kong Group Limited
EasyLink Networks & Belgravia Group (Asia) Limited (ELN)
HKdotCOM Ltd.
Hong Kong Broadband Network Limited
Hong Kong Cable Television Limited
Hong Kong CSL Limited
Hutchison Global Communications Limited
Interactive Broadband Services Ltd. (iBBS)
Microsoft Corporation
New World Telecommunications Limited
Pacific Supernet Limited
PCCW-HKT Telephone Limited
REACH Networks Hong Kong Limited
SmarTone Mobile Communications Limited
SUNDAY o/b Mandarin Communications Limited
Systech Telecom Limited
Wharf T&T Limited
Zone Limited
Organisations
The Computing Technology Industry Association (CompTIA)
Consumer Council
Hong Kong Internet Registration Corporation Limited (HKIRC)
Hong Kong Internet Service Providers Association (HKISPA)
Hong Kong Wireless Technology Industry Association (WTIA)
Hong Kong Telecommunications User Group (HKTUG)
International Chamber of Commerce (ICC)
The Law Society of Hong Kong
Senior Citizen Home Safety Association (SCHSA)
The Society of Hong Kong External Telecommunications Service
Providers
Individuals
Dr. Xu Yan
Eric Kwan
Ms. Chan
Dr. John Ure
Legislative Councillor Hon Sin Chung Kai, JP
NAC members
PCCW-HKT Telephone Limited
Wharf T&T Limited
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4. The submissions are summarised in this document. .
12(a) Are there any other issues in addition to those listed above that
should be considered in formulating the regulation for IP Telephony
services?
6. Hon. Sin Chung Kai shares similar view with Dr. Xu and considers
that the policy framework should not narrowly target on specific service.
Instead, we should keep our eyes on the development of IP technology and the
emergence of multimedia applications to be delivered over NGN. In addition,
Hon. Sin Chung Kai has reservation towards the adoption of the Chinese term
“寬頻電話” for “IP Telephony” initiated by the industry and followed by users
and OFTA. In considering that broadband services always give people an
impression that it is better than existing services like broadband internet access
service is better than narrowband dial-up service, he suggests that OFTA
should officially define a correct Chinese term for “IP Telephony” so as not to
mislead the customers into recognizing it as a service superior to conventional
telephone. In his submission, he uses the term “網際規約電話” as the Chinese
term of “IP Telephony”, which is the same as the Chinese term we use. Hon.
Sin Chung Kai views IP Telephony as an Internet application only and it is not
going to substitute conventional telephone service. In this regard, Hon. Sin
Chung Kai suggests that OFTA should regularly conduct survey on user
penetration of IP Telephony service and carry out review on the regulatory
policy should the survey indicates that IP Telephony has superseded or become
a substitute of the conventional telephone service.
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7. CompTIA also has a view similar to Dr. Xu Yan and Hon. Sin Chung
Kai. It believes OFTA should recognize the significant industry convergence
which is occurring between IT and telecommunications sectors and develop a
relevant policy framework. It urges OFTA not to regulate IP-enabled services in
a piecemeal fashion since regulating a single IP-enabled application will have a
profoundly negative impact on all IP-enabled applications.
8. PCCW suggests that, with the recent and rapid introduction of VoIP
services in Hong Kong, the TA’s decision-making in this important area should
serve to assist in preserving investment incentives, encourage innovation and
facilitate the continued development of new services and technology.
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assist them in understanding the pros and cons of different modes of telephone
services. Consumer Council also suggests that OFTA should closely monitor
the marketing activities of service provider ensuring that they provide correct
information of their service to their customers. Besides, OFTA should
strengthen its capacity to handle complaints against IP telephony service. Some
sort of penalties should be imposed onto the offending service provider.
Similarly, Dr. John Ure suggests that, in the telecom environment that VoIP
will usher in, regulation will have to adapt to the fact that levels of service will
differ, and steps must be taken to keep the public informed of these issues. This
may require information obligations on service providers and safeguards,
including a requirement to offer emergency services.
12. ICC submits that the Government should ensure that VoIP services are
open to provision by all interested service providers and that where licensing
conditions exist, they are objective and non-discriminatory and the criteria for
granting authorization are transparent.
14. Ms. Chan suggests that issues like (a) spamming of programmed
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voice advertisement, (b) security of voice information over the packet-switched
network and (c) how to maintain a fair market for the network operators should
also be considered when formulating the policy framework. Besides, Ms. Chan
also proposes that OFTA should help shape the new technology in considering
that a majority of the general public do not have the knowledge in deciding
which technology best suit their needs and that the conduct of some of the
operators or individual staff may mislead the public and create confusion and
unhappy experience. Similarly, Dr. John Ure considers that an IP networked
telecom world will raise many potential issues such as the threat of viruses, the
need to map telephone numbers onto IPv6, the demand by consumers to use the
same number for multiple access devices and by implication the convergence
of fixed and mobile services. Dr. John Ure suggests that it would be helpful for
OFTA to map out some of these issues for industry discussion and public
information.
Policy
18(a) Do you agree with our proposed approach that the minimum and
proportionate regulation should be applied to IP Telephony services?
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such regulation should focus mainly on consumer protection. Any regulation of
IP Telephony services should be considered in a broader context under the
formulation of a general policy for regulating the offering of
telecommunications services to the public pursuant to section 8(1)(aa) of the
Telecommunications Ordinance (which is yet to commence operation).
18. Among the supporting respondents, both the ETS Society and Zone
1511 believes that the “technology neutrality” principle should continue to be
applied but it should remain subject to review when there are significant
changes or new developments in IP Telephony, such as MMS delivery and
video telephony transmission. SUNDAY submits that mobile operators should
also be permitted to provide services deploying IP-based technology under
their existing licences
18(c) Do you agree that the market should be left to manage the shape
and the pace of transition of the operating environment? What role should
the regulator play in the transition?
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question, Ms. Chan has a different view from the above 12 respondents. Ms.
Chan suggests the authority to manage the ultimate shape of the operating
environment rather than freeing its hand and let the market developed by itself.
She considers that, if not doing so, the ultimate shape of the market may be
determined by the industrial giant(s) who may only focus largely on monetary
gain as their ultimate goal. On the other hand, Ms. Chan is concerned that the
general public may not have the technology expertise to decide the best
technology to use. Hence, what the shape of the future telephony will be better
left to the authority to decide. However, Ms. Chan submits that pace at which
the market is transit to the ultimate shape as predicted by the authority should
be left open.
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operating environment. Besides, CM Tel recommends not to adopt laissez-faire
approach to avoid disorder and ill-conditioned over-competition. Peoples
suggests that OFTA should make sure that the consumers are well educated of
the pros and cons of IP Telephony so that they are allowed to make informed
choices. Pacific Supernet opines that OFTA has to set the framework for
licensing, number portability and interconnection between fixed carriers and IP
Telephony providers so that these issues will not be obstacles for IP Telephony
providers. iBBS proposes that the regulator should pay a role of monitoring
fraud or misleading behaviour of service providers. Ms. Chan suggests the
authority to manage the ultimate shape of the operating environment rather than
freeing its hand and let the market develop by itself.
Licensing framework
27(a) Do you consider that the conditions under the current licences for
fixed and mobile carriers should be fully applied to the provision of IP
Telephony services?
23. HGC, CM Tel, PCCW, HKBN, SmarTone, CSL, e-Kong, ICC and
Consumer Council are the 9 respondents who express their support to the
proposal. However, 5 of them consider that such licensing conditions should be
applied to those IP Telephony service provider who would act as a substitute of
the conventional telephone service provider. Specifically, CM Tel considers
that service-based operator with less commitment to the society and less service
reliability, can hardly meet with these social expectations and therefore should
not given the same carrier status.
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under the current licenses for fixed and mobile carriers should be applied, like
the case of MVNO. Similarly, Peoples submits that IP Telephony services
should be treated as a different class of services and a different set of licence
conditions should be applied.
25. REACH is the only respondent who does not directly address the
question but offers some other comments. REACH considers that licensing
arrangements (or rather rights under the respective licences) should align with
the service levels provided by respective IP Telephony operators (for example,
numbering rights varying depending upon provision of access to emergency
services).
27(b) If the answer to the above question is “no”, do you agree that an IP
Telephony service intended to be used as a substitute for the conventional
public telephone service should be required to meet a minimum set of
conditions?
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conventional public telephone service should be required to meet a minimum
set of conditions
29. WT&T, REACH, PCCW, SUNDAY, e-Kong and ELN are the 6
respondents who disagree with the proposal and share similar views that
regulatory requirements comparable to those of Fixed Carrier or FTNS licence
should be imposed to the IP Telephony service intended to be substitute for the
conventional public telephone service to protect consumers’ interests and avoid
consumers being misled. Specifically, REACH submits that regulation should
not unreasonably exempt services provided by one means of technology from
such obligations if similar services provided by another technology still carry
these obligations. ELN considers that the VoIP service should have to meet the
same conditions that are imposed to the FTNS operators if the service is
intended to actually replace the PSTN. PCCW is of the view that the minimum
set of conditions for VoIP services intended as substitutes for conventional
public telephone services and enjoying the rights of an FTNS licence should be
the General Conditions already specified in the existing FTNS licence, the
Ordinance and TA Statements, including GC 10 (backup power facilities), GC
13 (Interconnection requirement), GC 14 (Number portability), GC 25
(Directory enquiry service) and 26 Access to emergency services)
30. Microsoft and Ms. Chan offer some other views instead of giving a
definite answer to the question. Microsoft considers that the imposition of
required features and other regulatory obligations in these circumstances would
discourage the launch of new voice services and therefore limit the choices
available to consumers. Nevertheless, Microsoft agrees with OFTA’s proposal
given in paragraph 25 of the Consultation paper that it may be useful to have a
mechanism, such as a formal declaration or a recognised logo, whereby
consumers could quickly and easily tell whether a service provider has chosen
to implement a service that offers a particular set of capabilities. Ms. Chan
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considers that whether the new technology can substitute the conventional
technology should leave to the consumer market to decide and she believes that
IP Telephony cannot be a 100 % substitute to the conventional carrier. In this
regard, she does not offer any reply to the question, which has assumed that IP
Telephony service can be a substitute for the conventional telephone service.
27(c) What are the criteria for classifying an IP Telephony service as one
intended to be used a substitute for the conventional public telephone
service?
33. After consolidating the various views of the respondents, the proposed
criteria can be summed up as follows:
(1) Any-to-any connectivity,
(2) Access to emergency services,
(3) Directory enquiry services.
(4) Number portability
(5) Good, efficient and continuous service in a manner satisfactory to the TA
(6) Service agreement in place to ensure appropriate level of QoS
(7) Allocation of number blocks
(8) Local battery backup
(9) Location information
(10) Low cost terminal
(11) Voice conferencing capability
(12) Normal telephone numbers
34. The Law Society does not offer any proposal on the criteria but
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considers it is inappropriate to attempt to distinguish IP Telephony services
which are intended to be used as a substitute for conventional public telephone
services and those which are not and attempt to introduce different sets of
regulations for the following reasons: (1) Any distinction is likely to be very
controversial and will make the regulatory regime unnecessarily complex. (2)
Users’ choices and preferences regarding how different services are to be used
should not be pre-empted, especially as they change from time to time. (3) The
underlying assumption in the Consultation Paper that people rely on PSTN (and
therefore FTNS) as their basic telephone is gradually becoming untenable, as
more and more households cease to subscribe to FTNS and switch to mobile
services. As long as Users understand the differences between the services
they should be allowed to make an educated choice.
27(d) Do you consider that a new type of licence needs to be created for
regulating IP Telephony services which are intended to be a substitute for the
conventional public telephone service?
35. There are 11 submissions to this question. NWT, Peoples and Ms.
Chan supports that a new type of licence needs to be created for regulating IP
Telephony services which are intended to be a substitute for the conventional
public telephone service while PCCW, HKBN, CM Tel, e-Kong, ETS Society,
HKISPA and ELN disagree.
36. CM Tel and e-Kong share the same view that it would be more logical
and appropriate to modify the existing FTNS/Fixed Carrier License to suit the
new operating environment so that operators who intend to adopt the new
technologies are placed in a level playing ground. Both ETS Society, HKISPA,
PCCW and ELN considers that the same regulations currently imposed to FTNS /
Fixed Carrier licensees should apply if the new service is intended to replace
the conventional public telephone service. However, HKISPA opines that IP
Telephony is a different class of service and should not be collectively treated
as substitutes for traditional voice services at the regulatory level unless it is
advertised or marketed as traditional telephony service and consumer is not
aware that it is indeed IP telephony. HKBN submits that any regulatory
arrangements should focus on the “nature of services” rather than on the
“technology used to provide the services”. HKBN believes that this would
signal a departure from the "technology neutrality" principle if a new set of
rules/license conditions be imposed just because IP technology is used by
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operators.
37. Pacific Supernet does not reply the question but simply opines that
service conditions such as number portability should be optional.
39. While WT&T supports the proposal, it emphasizes that there must be
clear declaration in all relevant marketing or sales communication materials of
such IP Telephony services indicating the weakness and strengths of the
services so as to protect consumers’ interests. CM Tel believes that minimal
regulation should address requirements from both sides, i.e. operating
environment and social objectives. CM Tel opposes to an IP Telephony service
that is labelled as service not intended to be used as a substitute for the
conventional public telephone service and so is allowed to escape from
fulfilling several basic requirements of a public telephone service.
40. NWT and Hon. Sin Chung Kai share the same view that IP Telephony
services should generally be not subject to regulation and let the market or
service providers to determine the quality standards, service features and price.
Hon. Sin Chung Kai opines that OFTA should request the service providers to
communicate correct information to the consumers and clearly describe the
capabilities and limitations of their service. He considers that OFTA should set
up licensing requirement to regulate the conduct of IP Telephony service
providers in marketing their services. Peoples suggests that such service can be
treated as an ordinary Internet application where the service providers cannot
enjoy the rights of FTNS operators such as allocation of number block and
any-to-any connectivity. Ms. Chan opines that regulation applied should be
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“appropriate” in which the regulations should not hinder the development or
enhancement of new technology while maintaining a fair and competitive
market and providing sufficient consumer protection for the public. Pacific
Supernet recommends that OFTA should amend the existing ISP PNETS
license to include IP Telephony as soon as possible and the license obligations
should be light, similar to other value added service licence such as ETS or
IVAN licenses.
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supports the proposal on the condition that an agreement of a "managed
network" is in place to ensure an appropriate level of QoS that will satisfy
customer expectation. PCCW submits that the provision of VoIP services over
the broadband Internet service provided by another operator should be
permissible but should be subject to commercial arrangements being made
between the VoIP service provider and the broadband service provider. The
relationship between the ISP and its customer is contractual and driven by
market forces.
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Additionally, the TA should consider adopting a quality mark/label system for
service providers for identification purposes.
46. CM Tel, ETS Society and Zone 1511 believe that consumer interest
protection may be well addressed through education to consumer on choice of
broadband service providers. Additionally, CM Tel considers that the TA should
also request service providers (including providers of broadband connection
services and IP Telephony services) to provide customer charter to address QoS.
CM Tel considers that the consultation paper of “Providing Quality of Service
Information to Consumers of Public Telecommunications Services” dated 23
July 2004 is a good start.
47. Peoples, PCCW, AT&T and ELN share similar views that the
consumers should be well informed of the difference of the capabilities and
limitations of different IP Telephony services such as that provided over a
"managed network" or that provided over the Internet by "best effort". In
addition, ELN considers that guarantees of accessibility, access to emergency
services, power failure operation and etc. should all be highlighted. PCCW
suggests that penalties should be imposed if service providers are found to be
representing their VAS service as a direct substitute for conventional voice
services. Regarding its proposed 2-Tier service regime, PCCW suggests that, in
relation to Tier 2 VoIP services, consumer interests will be protected in several
ways. Firstly, distinct numbers will be allocated to these VAS suppliers of
VoIP services. Secondly, number porting will be limited to help ensure that
users are neither confused nor misled by what Tier 2 VoIP service is and is not.
Thirdly, market forces (over time) will encourage Tier 2 VoIP service providers
to improve their services to obtain Tier 1 status. Lastly, consumer interests
will be safeguarded via a comprehensive and substantial consumer education
process
48. WTIA considers that the TA should consider extending the coverage
of the Consultation Paper entitled “Partial Commencement of Section 8(1)(aa)
of the Telecommunications Ordinance and Creation of a Class License to
Regulate Resale of Telecommunications Services” issued on October 15 2004
so that all the Resellers and/or Distributors within HK of any local or overseas
IP Telephony services should also require a class license.
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concern as the consumers have got used to the separation of network
connectivity and service delivery in the IDD and dialup Internet services,
which have been proven practical and successful over the years. In the light of
such customer experience, HKISPA believes that provision of IP Telephony
service in a similar manner shall suffice to protect consumer interests. Similarly,
Pacific Supernet considers that consumer interest protection should not be an
issue as long as consumer is aware that they are using IP Telephony service
over broadband connection provided by other operators.
52. Although they generally support the proposal, some respondents have
further comments on the question. NWT considers that the PNETS licence can
be modified to allow non-facilities based service providers to provide IP
Telephony services in Hong Kong. ELN submits that there should be some
contribution levies in order to make the competitive landscape level and fair to all
operators. Consumer Council supports the policy of allowing service-based
Public Non-Exclusive Telecommunications Service (PNETS) Licence holders
to use IP Telephony technology to provide international call services but opined
that opening the local voice services market to these service operators at this
stage could hinder the infrastructure investment and the IP Telephony service
development, ultimately affecting the choices of consumers in the future.
Regarding paragraph 36 of the Consultation Paper, HKISPA disagrees with the
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argument that this new service is diverting revenue from fixed network
operators and discourages investment in network construction. Instead,
HKISPA believe introduction of IP Telephony and other new services through
the Internet Protocol would create demand for the local network and that is
itself an incentive for investments into the network, as evident from the revenue
volume that ISPs pay for local access provided by existing FTNS service
providers. PCCW proposes that there must be a separate class of service (i.e.
Tier 2) to those offered by FTNS licence-holders which fully satisfy the FTNS
licence requirements (i.e. Tier 1), with different rights and obligations. This
regulatory framework is somewhat the same, in principle, as the current
licensing regime for 3G mobile services, where Mobile Virtual Network
Operators are able to offer 3G services without acquiring a 3G licence.
53. CM Tel, WTIA, Peoples and Ms. Chan offer other views on this
question. CM Tel submits that the current PNETS license is not designed by its
nature for operation of local voice telephony services. CM Tel agrees that some
extent of flexibility can be allowed for IP Telephony service in the
consideration of additional and more advanced and distinctive functionalities
available on IP Telephony service such as the mobility via Internet access. To
this end, several current requirements like access to emergency services,
backup power supply, quality of service, etc. need to be reviewed to correctly
respond to the new market situation, so as not to obstruct the adoption of new
technologies. WTIA opines that the TA should issue a new class license for IP
Telephony Services Providers and suggests that, once the PNETS licensees
offer IP Telephony services that need any local or overseas PSTN
interconnection or ordinary telephone numbers, then they should apply for this
new class license. Ms. Chan shares the same view of WTIA that we need to
have additional clause or annex or even a separate license to be issued for the
IP Telephony operators. Peoples submits that IP Telephony as a substitute for
the conventional public telephone service should only be allowed when the
service provider has established agreement for "managed network" with
network operator.
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50(a) Should the traditional PSTN services and IP Telephony services
which are intended to be a substitute for the conventional public telephone
service share the same number blocks?
54. The submitted views on this issue are quite diversified. Among the 25
respondents, 17 of them including PCCW, HKBN, HGC, CM Tel, SUNDAY,
SmarTone, CSL, HKISPA, ETS Society, e-Kong, Pacific Supernet, ELN, AT&T,
ICC, WTIA, HKTUG and Ms. Chan are supportive of the proposal that
traditional PSTN services and IP Telephony services intended to be a substitute
for the conventional public telephone service should share the same number
blocks. 8 respondents including NWT, WT&T, REACH, Peoples, CompTIA,
Zone 1511, Consumer Council and Hon. Sin Chung Kai disagree with the
proposal.
55. Among the respondents who do not support the proposal, the network
operators NWT, WT&T and REACH submit the only fixed network licensee
should be permitted to use 8-digit fixed line numbers for IP Telephony services
as this is consistent with the Hong Kong Numbering Plan. Peoples believes that
these two types of services should not share the same number blocks and
porting between them should not be allowed until 2-3 years later when the
consumers become fully familiar with IP Telephony. CompTIA submits that a
non-geographic number may be desirable in considering that VoIP is
independent of any physical location. Hon. Sin Chung Kai, Zone 1511 and
Consumer Council submit that separate 8-digit number blocks should be
allocated to help discriminate IP Telephony from conventional telephone
service.
56. The submitted views on this issue are quite diversified. Among the 24
respondents, 9 of them are supportive of the allocation of special number
blocks (i.e. prefix + subscriber number) to IP Telephony services not intended
to be a substitute for the conventional public telephone service, 9 respondents
are supportive of allocating 8-digit telephone numbers and two suggest no
number allocation at all. The other 4 have some other comments.
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57. The 9 respondents who support special number block allocation
include PCCW, HGC, NWT, WT&T, REACH, ELN, AT&T, ETS Society and
Ms. Chan. While supporting the option of special number block allocation,
AT&T put forward another proposal of establishing a new number block (i.e.,
called “non-geographic numbers” in many geographically larger jurisdictions)
for IP Telephony, particularly if this will create efficiencies that improve the
ability of new IP Telephony providers to obtain and use number resources. ELN
submits that special numbers/email-addresses should be allocated if they will
be part of the current VoIP “island” but normal numbers should be allocated if
the IP Telephony service will be transparently accessible from the PSTN.
59. ICC and iBBS submit that both geographical and non-geographical
numbers may be appropriate for VoIP services. SUNDAY opines that IP
Telephony service providers should be allowed to apply for numbers from
OFTA or they may collaborate with fixed carriers or mobile carriers and obtain
numbers from them. This concept is analogous to MVNO’s numbering
arrangements. SUNDAY considers that the number range and format as well as
number portability issues should be further discussed by the industry under the
Numbering Advisory Committee (“NAC”) for the purpose of settling the
implementation plans and related issues. WTIA considers that IP Telephony
services provider can allocate numbers that are not associated with a telephony
service, a provider can allocate numbers that are not associated with a
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telephony service at fixed locations such as mobile or personal numbers.
60. CM Tel and Peoples are the two respondents suggesting not to
allocate telephone numbers to the IP Telephony service provider not intended to
be a substitute for the conventional public telephone service.
61. There are 12 respondents to this question and the views are diversified.
Three respondents including NWT, WTIA and Ms. Chan support that all types
of IP Telephony services be allocated with the special number blocks.
62. PCCW, WT&T, Peoples, ETS Society consider that only IP Telephony
service not intended to be substitute of conventional telephone service should
be allocated with special number blocks.
63. ELN opines that a normal number should be allocated if the IP phone
is “callable” from the PSTN. CM Tel objects allocation of special number
blocks to IP Telephony services of any kind, CM Tel considers that it is not
justifiable for those arguments of using special number blocks to distinguish IP
Telephony services from conventional public telephone service. Consumer
Council and Pacific Supernet supports the allocation of a special number block
with 8 digits to both carrier operators and IP Telephony service providers and
considers that this would facilitate number portability and make it easier for
consumers to switch to IP Telephony if they prefer. CLS submits that, before
creating a whole new category of numbers (i.e. prefixed long-form numbers)
which may cause confusion to the general public, OFTA should assess the
likely growth in IP Telephony services, whether telephone numbers longer than
8 digits are required at this point in time and if not, when that need may arise.
50(d) How should the numbering resource challenge arising from the
proliferation of IP Telephony services be tackled?
CM Tel submits that, at the current stage, it would be too early to worry of
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numbering resource challenge arising from the proliferation of IP Telephony
services. The consumption of numbering resource for IP Telephony services
will depend on further development of telecommunications market, which will
be affected by various factors such as economic climate, regulation design,
technology advancement, change in consumers’ perception, and also flow
between IP Telephony services and conventional public telephone service. CM
Tel suggests an allowance of close observation of 12 months on the usage of
existing numbers, before we can make a meaningful improvement of the
existing numbering plan. Similarly, CSL also considers that it is too early to
foresee the demand for IP Telephony services and it is premature for OFTA to
conclude that 8-digit numbers cannot be allocated to different types of IP
Telephony services. CSL adds that the role of OFTA should be to ensure there
is sufficient flexibility in the Numbering Plan to cope with growth in demand
for services and changes in consumer need. Pacific Supernet submits that,
instead of going to a new prefix with additional digits for IP Telephony, we
should allow the numbering plan to be expanded on an as required basis.
65. Peoples and WTIA share the view that number blocks should be
allocated in small range (i.e. 1000) and the applicant has to reach high
utilization (say 90%) of the allocated number blocks before new blocks are
allocated.
66. PCCW suggests that the length of the existing 8-digit telephone
number be extended to accommodate IP Telephony services, such that an
additional prefix needs to be dialed in order to reach the VoIP service subscriber.
This special prefix could also serve to earmark the service as a Tier 2 VoIP
service. ELN and ETS Society share similar view with PCCW. ELN suggests
adding digits or expanding the number space while the ETS Society considers
that the options could be (a) adding another digit to the normal number blocks;
or (b) assigning a prefix as access code for the IP Telephony services.
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which are originally allocated for public paging and personal numbering
services, for IP Telephony services as the consumer in HK already perceived
and accepted the mobility characteristic of using pager and personal numbers.
Number portability
70. While supporting the proposal, HKISPA considers that OFTA should
mandate for one fixed network telephone service provider to operate as a
gateway for IP Telephony providers to facilitate full call delivery and number
portability between IP Telephony network and fixed network. Peoples suggests
that the number portability requirement should be imposed to the relevant IP
Telephony service providers after a transition period of 2-3 years. PCCW
considers that number portability is a right rather than an obligation. As such
only the VoIP service which meets all the conditions of the FTNS licence,
satisfies the requirements of the Ordinance and TA Statements, and complies
with market best practice (and hence is substitutable with the existing fixed line
voice services in terms of functionality) should be entitled to number
portability.
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71. Ms. Chan holds a different view. In considering that IP Telephony is
new to the market, Ms. Chan suggests that number portability service should
not be a mandatory requirement and thinks that this may help simplifying the
initial introduction of the new technology. iBBS considers that the IP
Telephony number issue can be addressed by ENUM implementation and urges
OFTA to speed up the process in this area instead. SUNDAY submits that
number portability issues should be further discussed by the industry under the
Numbering Advisory Committee (“NAC”) for the purpose of settling the
implementation plans and related issues
74. The other respondents have different views. The ETS Society and
Zone 1511 share the view that it would be optimal for the IP Telephony service
operators to decide whether to entertain this requirement, when offering
complementary services. CM Tel considers that such services should not be
classified as public telecommunications service and therefore they are not the
subject matter of this Consultation Paper. WTIA suggest that the TA should
consider to combine the Number Portability and the Dipping Databases on
mobile and fixed networks so that number portability among different type of
services can be implemented. SUNDAY proposes that number portability
issues should be further discussed by the industry under the Numbering
Advisory Committee (“NAC”) for the purpose of settling the implementation
plans and related issues
Any-to-any connectivity
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58(a) Should any-to-any connectivity principle be adopted for IP Telephony
services intended to be a substitute for the conventional public telephone
service?
76. iBBS is the only respondent objecting to the proposal. iBBS submits
that OFTA should play a role in speeding up the ENUM implementation.
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operators requesting interconnection can be very disruptive to the market and
proposes that a more efficient way of going about it would be to make it a
licence condition that the said IP Telephony service providers can only obtain
interconnection via hosting connection with one of the FTNS operators.
81. Among the respondents who support the proposal, ETS Society and
HKISPA have some further views. ETS Society believes that we should extend
our existing interconnection regime to IP Telephony service if it is intended to
be a substitute for the conventional public telephone service. For IP Telephony
Services not supplied as a substitute, it should depend on commercial
circumstances and the kind of services to be introduced to decide on the
interconnection arrangements. HKISPA advocates that OFTA should mandate
one FTNS service provider to act as a gateway between PSTN and IP
Telephony for call deliveries and number portability. HKISPA considers that
this is a necessary step to enable healthy IP Telephony market competition,
shorten the time-to-market of the service and help speed up the IP Telephony
service adoption in Hong Kong, which is lagging way behind other countries.
27
82. NWT, Peoples, SmarTone, HGC and iBBS are the 5 respondents who
hold opposite views. NWT opines that IP Telephony service providers do not
have rights of interconnection and should enter into commercial arrangement
with a fixed network licensee for access to the PSTN in order to terminate and
receive calls on the PSTN. Peoples considers that we should not extend our
existing interconnection regime to IP Telephony services in considering the
existing interconnection regimes has created a number of market distortions
between fixed network services, mobile network services and external
telecommunications services in the past 8 years. With the emergence of IP
Telephony service, Peoples urges the TA to carry out a thorough review of the
existing interconnection regimes. SmarTone considers that the proliferation of
IP Telephony services renders the need to review the interconnection charging
regime. And submits that it is an appropriate time to rectify the imbalance in
the fixed/mobile interconnection regime which has been strongly in favour of
the FTNS operators/fixed carriers.
28
interconnection and user-to-network interface of IP-based technologies or
should we simply allow the market to evolve and determine the standards
itself?
85. SmarTone, CSL and ELN do not directly address the question but
offer some other relevant comments. SmarTone submits that the existing
technical standards should be sufficient for the IP Telephony purpose and there
is no need for OFTA to prescribe standards. CSL opines that it is inappropriate
to mandate stringent interconnection standards as IP Telephony technology is
still in its infancy. It suggests that OFTA should hold an industry consultation
on the types of standards which may be acceptable for interconnection
determination. ELN may have a different interpretation on the question and
expresses different view. It opines that standards that encourage consistency
and help guarantee universality of connectivity should be aggressively
supported while proprietary standards that favour specific products and services
should be discouraged.
29
databases of IP-based networks. Among them, CSL suggests that OFTA should
also assist the industry to obtain government funding for the initiative. HKIRC
further opines that a standard approach like ENUM should be adopted and
considers that adoption of ENUM by all IP telephony operators will eliminate
the need for them to devise proprietary conversion schemes and number
portability becomes easier.
87. SmarTone and HGC expressly disagree with the proposal where
SmarTone considers that it is not necessary for OFTA to fix the conversion of E.164
with IP address at the moment.
88. Peoples, WTIA, iBBS and HKISPA have some different views on the
question. Peoples submits that the TA must ensure the industry to comply with
international practice and considers that, under the EU regulatory framework,
some market offerings are excluded from regulatory control (e.g. through a
software on PC, inside a corporation). WTIA, iBBS and HKISPA believe that
OFTA should play a role to facilitate the establishment, standardization and
interconnection of ENUM. WTIA suggests the TA to initial “test-bed”
implementation for ENUM and co-operate with educational institutes, HKNIC
and interested telecom companies to establish ENUM testing sites in HK.
90. Among the respondents who support the proposal, SmarTone and
Pacific Supernet share the view that CLI should only be required for IP
Telephony service that is intended to substitute public telephony services while
it should be optional for IP Telephony service not intended to be substitute of
30
conventional telephone service. In contrast, PCCW opines that CLI
requirement should be mandated for IP Telephony services no matter whether it
is intended to be substitute of conventional telephone service. CSL considers
that, if only IP Telephony to IP Telephony calls are being made within the IP domain,
the CLI should not be mandatory as there are currently applications which are buddy
lists, IP addresses or the URL, instead of CLI..
93. Among the objecting respondents, HKISPA considers that the current
PNETS charge regime should not apply to the IP Telephony scenario because it
is unfair to the IP Telephony service provider to pay for calls from both
directions while the PSTN or hosting service provider, if any, is under a mutual
arrangement on interconnection charges with other PSTN operators. HKISPA is
inclined to the idea that the interconnection charge should be zero for IP
Telephony for the following reasons: (i) the nature of interconnection charge is
in the form of call settlement and statistically it should be balanced; (ii) the
interconnection charge discourages origination of calls, so if there is
interconnection charge in place for IP Telephony then users might be
31
discouraged from making calls; and (iii) the telecommunications trend is
towards flat rate accounting. HKBN and CM Tel consider that the
interconnection charges in question should not be subject to commercial
agreement and believes that the existing charging principle as in Statement
No.7 should be adopted for IP Telephony services, regardless of the
transmission technology being deployed for voice services. CM Tel further
comments that, for the scenario described in paragraph 69 of the Consultation
Paper, PNETS operators which are allowed to provide IP Telephony service
should not be granted the interconnection right/obligation unless they could
fulfill the minimum regulation to preserve the attainment of certain social
objectives. e-Kong submits that OFTA should set reference rate for each type of
interconnection charges in considering that it would be difficult for the smaller
IP telephony service providers to negotiate with the big players on an equitable
basis. Similar to e-Kong, Ms. Chan suggest that, just like the PNET charge, a
fixed rate charge could be levied by the fixed carriers or the broadband
connection suppliers when the IP Telephony service provider is going to use
their network to provide service.
32
approach on the interconnection charges between IP-based networks but
suggests that OFTA should not seek to regulate the level of charges applicable
to the interconnection in question. HKBN also supports the view that the TA
should not intervene in IP-based interconnection but leaving it to service
operators to conduct and strike their own commercial negotiation arrangements
where required.
98. Peoples, WTIA and Ms. Chan have some different views. Peoples
considers that the TA should issue specific guidelines under the
Telecommunications Ordinance for the interconnection charges if the
"any-to-any" principle is enforced between IP-based networks. Ms. Chan
expresses the same view as that given in response to Question 71(a) above.
WTIA does not address the question directly but agrees with the TA’s view
discussed in paragraph 68 and welcomes the TA to intervene or give guidance
when consider necessary.
71(c) Do you agree with the above approach on the interconnection charges
between the IP Telephone service provider and the supplier of the broadband
Internet connection?
99. Among the 22 respondents who have submitted views on this question,
14 of them including HKBN, NWT, CM Tel, SmarTone, Peoples, CompTIA,
ELN, Zone 1511, Pacific Supernet, iBBS, Microsoft, WTIA, AT&T and
HKISPA agree with the TA’s proposed approach on the interconnection charges
between the IP Telephone service provider and the supplier of the broadband
Internet connection.
33
service provider for an additional payment of interconnection charge for the
conveyance of the IP Telephony traffic over the broadband connection and (b)
there is no justification for the broadband connection supplier to block the IP
Telephony traffic if such payment is not made. HKBN considers that IP
Telephony services operating on the application layer of the broadband
connection should be similar in nature to other Internet peer-to-peer
applications, such as BT, WinMX, ICQ, MSN, Kazaa etc. The subscriber would
have already paid the broadband connection (either the network operator
operating the broadband connection or PNETS licensee) for the access of these
applications and it is therefore not necessary for IP Telephony service providers
to pay any additional interconnection charges. Although it supports the TA’s
view, Zone 1511 considers that, if an IP Telephony service provider has
preferred internet service provider and requires a special level of service from
them, there might have interconnection charges, based on the principle that the
originating party pays to the terminating party, and should be subject to
commercial negotiation and arrangement by the related parties.
101. PCCW, WT&T, HGC, HKCTV, ETS Society, HKTUG and Hon. Sin
Chung Kai are the 7 respondents disagreeing with the TA’s view. In particular,
PCCW submits that whether or not the ISP acts to charge the VoIP service
provider using its network is a matter for the ISP to determine and the extent of
the usage is irrelevant to the question of whether or not the ISP should be
permitted to charge the VoIP service provider. PCCW opines that these are
purely commercial decisions driven by market forces, business plans, corporate
strategies and revenue estimates. OFTA should not intervene (i.e. engage in
economic regulation) unless an ISP’s actions violate Sections 7K, 7L or 7N of
the Ordinance Sin Chung Kai considers that, in order to keep the network
operators’ incentive for infrastructure investment and promote effective market
competition, any kind of service providers should be subject to interconnection
charge if they are using the network of other providers to offer services. WT&T
objects to the proposal and submits that the TA should implement a user-pay
system under which all IP telephony service providers piggybacking on
network operators’ network for customer access would pay access
fees/interconnection charges to the network operators, where the quantum of
the access fees/interconnection charges should be determined by commercial
arrangements amongst the concerned parties, or failing which by TA’s
determination in accordance with established proceeding. HGC considers that
the TA’s view appears to contradict the view of the TA in respect of the
interconnection charging arrangements applicable to the International Call
Forwarding Services (“ICFS”) in which an ICFS provider is required to pay an
access charge to an MNO for making use of the call forwarding service of the
34
MNO in the circumstances where the relevant customer of the MNO has,
arguably, already paid for the same call forwarding services. HKCTV submits
that the TA should require a service provider to enter into an agreement with a
network operator to lease the latter’s bandwidth. Furthermore, HKCTV opines
that the customer of the broadband connection has paid for the connection for
selected purposes only and the fee he has paid does not cover the service for IP
telephony
102. Ms. Chan offers a different view. She suggests that, just like the PNET
charge, a fixed rate charge could be levied by the fixed carriers or the
broadband connection suppliers when the IP Telephony service provider is
going to use their network to provide service.
LAC
78(a) Do you agree that the existing charging principles of LAC should be
continued for interconnection between IP Telephony and circuit-switched
networks?
103. The views on the question are quite diversified. Among the 19
respondents, 7 of them including PCCW, HGC, CM Tel, CSL, ELN, HKTUG
and Hon. Sin Chung Kai support the proposed approach that the existing
charging principles of LAC should be continued for interconnection between IP
Telephony and circuit-switched networks.
35
interconnection charge at the same level as being collected by MVNO. Pacific
Supernet share the view of WTIA and agrees that IP Telephony provider should
be eligible to receive incoming LAC payment as the IP Telephony provider has
invested money in renting broadband access, buying equipment to provide
traffic termination for its customers
105. As for the other 3 respondents, they do not provide a clear-cut answer
to the question but offer some other relevant comments for our consideration.
NWT considers that OFTA needs to examine LAC arrangements to ensure that
local fixed network operators are adequately compensated for use of the local
loop by IP Telephony service providers. HKISPA believes that IP Telephony
service provider is providing the delivery service on behalf of their customers
and therefore financially and legally entitled to any benefits generated by using
the circuits they lease from the network operator including receiving LAC
payments from ETS operators. The HKISPA is inclined towards the idea that IP
Telephony service providers should not be subject to any LAC, if consensus
cannot be reached on this point. HKBN believes that, under the technology
neutrality principle, there is no need for the regulator to intervene in
interconnection arrangements between IP-based networks.
108. PCCW and CM Tel submit that it is not necessary to make any
fundamental changes to the LAC mechanism for the time being. PCCW
considers that the basic premise should still remain that LAC is payable for the
use of local network facilities and to encourage local network rollouts and
upgrades while CM Tel considers that IP-based environment when mature will
36
diminish contribution to LAC naturally.
109. ETS Society considers that the existing LAC mechanism cannot easily
cope with the structure of this technology and will present a hindrance to the
development of IP Telephony. ETS Society recommends the cancellation of the
LAC mechanism and have it replaced with a local interconnection charges
mechanism, which should be designed to fairly share the burden of LAC
recoveries among all the services accessing the local loop such as IP Telephony,
ETS, mobile, ISP or broadband services.
110. WTIA agrees with the scenarios described in paragraphs 73-77 and
supports the TA’s view that there would be no need for the equivalent of the
LAC mechanism to be developed for the IP-based environment. ELN may have
a different interpretation on the question and submits that additional charges are
not justified because access has already been made via the broadband network.
80(a) Do you agree that the type of traffic described in the preceding
paragraph generated by IP phone at local or overseas locations should be
regarded as local traffic?
112. Specifically, Peoples submits that the principles of cost causality and
actual cost recovery should be maintained whatever the traffic routing is. It is
not a matter of classification whether the traffic is regarded as "local traffic" of
not. If the service enables communication across the territories, certain
compensation should be provided to the operator who has invested in the local
access network carrying such call traffic. Otherwise, the continuous and
sufficient commercial incentive for investment in the local infrastructure will
be diminished. In addition, it should be possible for the mobile network
operators to collect LAC from ETS operators. However, as OFTA does not
intend to regulate the charges, it is not practical for a mobile network operator
to negotiate a LAC due to a lack of bargaining power under the "any-to-any"
37
principle. In case where the call traffic is between an "overseas" IP phone and
a local mobile phone, the mobile network operator should be entitled to collect
LAC regulated by the TA or through S36A determination as a last resort.
PCCW-HKT considers that for the purposes of LAC, calls should be classified
in accordance with their nature (international or local call). As such, calls
made between two countries should be treated as external calls regardless of
what telephone numbers or networks have been used. This is a technology
neutral approach and maintains network investment, rollout and upgrade
incentives. HKBN submits that any changes to the existing LAC mechanism
before the IP Telephony market has evolved would be premature.
80(b) If the answer to the above question is “no”, how do you propose to
meter the above type of traffic for LAC payment purposes?
115. Peoples does not propose solution to the question but emphasizes that
it will be necessary to distinguish all traffic types so that charges can be
accurately applied.
USC
85(a) Do you consider that the USO and USC sharing mechanisms should
be overhauled because of the development of IP Telephony services?
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116. Thirteen respondents have submitted views on this question. 10 of
them agree with the proposal, one disagrees and the others two do not provide a
clear-cut answer but offer some other views instead.
118. ELN is the unique respondent not agreeing with the proposal. It
opines that there is no such a need to overhaul the mechanisms but definitions of
Universal Service Obligation and Universal Service Contribution may need to be
modified to better accommodate VoIP service providers.
119. PCCW and ETS Society do not provide definite answer to the
question but offer some relevant comments. PCCW submits that, whether the
application of the USC to Internet minutes requires an overhaul of the system is
not directly relevant, what is relevant is the continuation of this important
subsidy scheme and the support of this scheme by all providers of international
traffic on a fair basis. PCCW further opines that, with the increasing use of IP
technology to deliver voice calls (which have traditionally been delivered using
circuit-switched networks), there are good reasons to take into account
international Internet voice traffic when determining the share of USC between
the operators, and to subject such traffic minutes to the USC regime. The ETS
Society firmly believes that USO is irrelevant to IP Telephony services and is
becoming increasingly irrelevant to the society in Hong Kong and proposes to
release the fixed line operators from the USO obligation for the following
reasons (a) Hong Kong residents have alternatives to basic fixed-wire services,
mobile and Wi-Fi being examples; (b) the geographic reach of mobile services
provides substantive coverage of Hong Kong; and (c) mobile substitutes are
easily used and cost effective. For those people so disadvantaged (presumably
being a very small number), a direct social security subsidy should be more
cost efficient and target-oriented than a total-system subsidy such as USC.
Accordingly, the ETS Society proposes that the USC charge be cancelled in
full.
39
obliged to share the contribution to USO, even though their traffic may not
traverse the PSTN at all and some of them may be local IP Telephony service
providers?
120. Among the 14 respondents who have submitted views on this question,
7 of them including PCCW, HKBN, NWT, CSL, WTIA, ELN and Ms. Chan
support that all providers of IP Telephony services should be obliged to share
the contribution to USO, even though their traffic may not traverse the PSTN at
all and some of them may be local IP Telephony service providers. 6
respondents including CM Tel, CompTIA, Zone 1511, Pacific Supernet,
HKISPA and ETS Society disagree. Peoples does not provide a definite answer
but offers some relevant views.
121. In view that the USC sharing exercise is based on international traffic
minutes, PCCW submits that all operators who provide international services
should be required to contribute to the USC and it may now be appropriate to
broaden the source of USO contributors to include other service providers,
since all these service providers have ultimately benefited from the
implementation of the incumbent’s ubiquitous network. HKBN opines that any
telephony service providers in Hong Kong providing telephony services should
be obliged to comply with the existing USO and USC sharing mechanisms, no
matter whether their services are provided through conventional circuit
switching technology or the IP technology. WITA considers that, other than the
call minutes generated by ETS operators, the following should also be required
to share the contribution to USO:
(i) Basic phone call minutes to and from all basic fixed telephone line
operators or Fixed Carrier Licensees,
(ii) Basic phone call minutes to and from all mobile and MVNO
operators,
(iii) Basic phone call minutes to and from IP Telephony services providers
that need ordinary telephone number on the termination or origination
of the call,
(iv) Dialup access minutes from dialup access services of all ISPs,
(v) Data volume in and out of a Broadband ISPs. For conversion of
circuit-switched telephone call minutes to measurable data volume,
we can use a formula for example, “1 sec of telephone calls equal to
12 K of Internet Protocol (IP) data bases on H.323 protocol G.729
Codec”
40
122. Regarding the views of the opposing respondents, CompTIA strongly
supports the goal of Universal Service as a matter of public interest as well as a
matter of technology adoption. However, CompTIA recognizes that the
regulatory programs to achieve that goal needs to be reformed first and believes
any attempt simply to include VoIP services in the current mechanism is not
only harmful to emerging VoIP providers, but consumers reliant on the
Universal Service for affordable service. Zone 1511 submits that USO is
irrelevant to IP Telephony services because it is not intended to be a substitute
for the conventional public telephone service. Pacific Supernet submits that
only IP Telephony service that is intended to be substitute of conventional
public telephony is obliged to USO and USC contribution.
123. Peoples agrees that the USO for fixed line to provide basic telephone
service remains no matter what technical developments are introduced but a
complete review of the USO and USC needs to be undertaken.
1) Request all IP Telephony service providers to report the actual call minutes,
and these figures should be subject to external audit. (Peoples)
2) Based on the number of telephone numbers assigned to customers
(PCCW)
3) All external traffic should be accessed through the designated access code
with leading digits 00XX or 15XX/16XX. Telephony services operators
could use the traffic recorded to meter the volume of “external” traffic for
USC purposes. (HKBN)
4) Basis should be gross call volume biased between number of calls and
number of call minutes. (ELN)
5) Use methods which have to be agreed among the both IP-based and
41
conventional telephony service providers, e.g. the number of subscriber.
(Ms. Chan)
125. ETS Society concurs that there is no obvious or fair way to make an
apportionment between local and international traffic and believes that the USC
weighting should be regarded as zero, based on the assumption that the
majority of IP Telephony calls will not terminate outside of Hong Kong.
Alternatively, ETS Society proposes that the USC charge be replaced with a
charging mechanism that may utilize minutes, subscribers or access events with
its underlying aim to ensure that all services equally bear this cost burden. ETS
society suggests the mechanism should include (a) Calls to and from fixed lines,
whether FSTN, IP Telephony or ETS; (b) Calls to and from mobile phones; (c)
Dial-up calls from ISPS; and (d) Broadband usage.
126. CM Tel does not think that it should jump into conclusion on which party
should be obliged to share the contribution to USO now. It would be unfair and
dangerous to make any assumption before they are allowed sufficient time to fully
study and analyze on this topic.
Directory enquiry
92(a) Is there any practical problem for a FTNS operator or fixed carrier
128. Only ELN considers that there would have problem for a FTNS
operator or fixed carrier to implement (i) and (ii) above and the problems may
include the rapid change/churn of subscribers in any connectionless (IP)
network and the lack of geographic boundaries.
42
129. PCCW, HKBN, CM Tel, Pacific Supernet, HKISPA and Ms. Chan
commonly consider that there is no problem at all. Specifically, PCCW
considers that there should be few practical difficulties for the FTNS operator/
Tier 1 service provider to also include in the directory database the names and
telephone number of Tier 2 VoIP subscribers, as the systems and procedures to
collate telephone numbers should already exist today. However, PCCW opines
that this should be done by the FTNS operator/ Tier 1 service provider under
commercial arrangement with the Tier 2 VoIP service providers. PCCW
indicates that there is no difficulty in providing unified printed directory and
telephonic directory services to their customers subscribing to an IP Telephony
service if the customers of an IP Telephony service can be included in the
unified directory database.
130. The ETS Society and Zone 1511 do not address the question directly
but commonly consider that IP Telephony services intended to be a substitute
for the conventional public telephone service should have its customers
included in the unified directory database while commercial arrangement
between FTNS and IP Telephony service providers should be entered to
determine the listing of IP Telephony numbers in the unified directory database
if the service provider is not a substitute for the conventional public telephone
service. Similarly, WTIA propose to keep the current directory services
practice of the industry.
131. Peoples may have interpreted the question in a different way and
opines that that the need for printed directory may be required. Peoples’
comment seems to be irrelevant to the question.
43
PCCW, CSL and Consumer Council commonly share the view that only FTNS
licensees or IP Telephony services that are intended to be substitute of the
conventional telephone service should be required to provide printed directory
and telephonic directory service. Furthermore, PCCW considers that the FTNS
operator should be entitled to charge for these services because there is no
reason why directory services should continue to be made available to
customers free of charge. HKBN and e-Kong submit that all types of IP
telephony services should be required to provide printed directory and
telephonic directory service. HKBN believes that subscribers of IP Telephony
services should be able to enjoy the same grade and type of directory enquiry
services that a conventional telephony service subscribes could enjoy. Peoples
considers that IP Telephony service providers that are assigned local telephone
numbers should be required to provide printed directory and telephonic
directory service to the customers
133. CompTIA, ELN, and AT&T share the view that IP Telephony services
should not be obligated initially to provide a unified printed directory or
telephone directory services of IP Telephony customers, but be permitted to do
so on a voluntary basis. Similarly, HKISPA believes that the issue of directory
listing for IP telephone should be left to the market to decide. ETS Society does
not believe that any requirement should be made for the provision of a printed
directory and considers that the users of IP Telephony are unlikely to require
such a service but are likely to prefer an electronic directory.
134. CM Tel, WTIA, iBBS and Ms. Chan do not address the question
directly but offer some relevant comments. CM Tel believes that the main
consideration is that the IP Telephony services should be public
telecommunication services meeting minimum regulation to preserve the
attainment of certain social objectives. WTIA considers that the original
purpose of the number will go away as time go by and the distinction between
fixed, mobile and IP Telephony will be blurred or even disappear over time.
Therefore, whether or not the IP Telephony services provider need to provide
Directory Services is questionable. iBBS agrees to maintain a directory enquiry
service for customer’s benefit but suggests not to apply the directory
requirement to IP Telephony service providers and should explore in the
direction of having one single directory service under ENUM in future. Ms.
Chan opines that only the telephone numbers of those commercial or public
facilities subscribing to IP telephony service need to be printed on telephone
44
directory.
137. Zone 1511 submits that it should be optional for the IP Telephony
operator to provide access to emergency services. Similarly, AT&T opines that
OFTA should leave the decision to the service providers if they would like to
provide access to emergency services on the condition that precise information
is given to customers as to the capabilities and limitations of the service to
reach the emergency agencies. AT&T considers that allowing service provider
differentiation, when accompanied by clear notification of service capabilities
and limitations, is an appropriate approach to encourage IP Telephony
innovation. iBBS submits that no emergency services access obligation should
apply to IP Telephony providers.
138. CompTIA does not offer a direct reply to the question but offer some
views on the capability of IP technology in the future. It predicts that not only
will current issues be satisfied, but as the technology matures, IP emergency
45
services will offer significantly enhanced features and controls that both first
responders and citizens will value.
140. On the other hand, HKISPA is of the view that end-users are not
deprived of any benefits if they are well aware that IP telephone is a service
that relies on the IP transit. Peoples considers that IP Telephony service must be
distinguished from conventional PSTN services through the allocation of
special number range and porting should not be allowed initially.
97(c) What technical or operational solutions are available for the supply
of reliable information on the locations of callers using IP Telephony services
to the emergency services?
46
142. CM Tel, CSL, Pacific Supernet and ELN commonly consider that one of the
methods is to request timely update from customers to maintain accuracy of customer
database information. ELN further indicates that the inclusion of GPS transceivers
into IP phones might be a possible solution but it would be intrusive, expensive,
and unreliable (GPS operates at ~13GHz and the signal cannot penetrate
buildings well at such frequency). HKISPA opines that it would be technically
feasible to trace the IP address by the AS path from the global BGP table so
that the ISP hosting that IP address can be identified. The ISP can then be
contacted for information about the physical location of that specific IP address.
This is currently feasible but not administratively efficient when the ISP is
located overseas. Ms. Chan believes it is a very important function of the
telephony industry to provide reliable information on the locations of callers
when they call for emergency services. She proposes binding the physical
location to the IP Address instead of the telephone number may be an option.
PCCW suggests that the IP address from which the call is generated can be
used to pinpoint the geographical location of the caller. Besides, PCCW
considers that it will need to ask the caller for his current location if it is known
by the telephone number shown on the CND that the caller is using IP
Telephony service. WTIA considers there may be a need that the TA, HK
Police Emergency Centre and IP Telephony services provider should setup a
special workgroup to take care and keep track of the technical issues,
development, advancement and implementation on the access to emergency
services using IP Telephony.
143. Both Zone 1511 and ETS Society believe that IP Telephony operators
should not be obliged to supply call-by-call information on the locations of callers to
emergency services. If correspondence or registered access address is useful
information or required under certain circumstances, IP Telephony operators should
be obliged to provide such information. SCHSA express their concern on the fact
that it would not be feasible for the IP Telephony service provider to provide
reliable information to the emergency service centre of the location of a caller.
SCHSA indicates that the access to emergency service and reliable
identification of the caller location are of paramount importance to the timely
rescue of the elderly in need.
144. HKBN proposes that, before solutions for the provision of location
information is available, service operators should inform users as to whether
47
the service they offer can or cannot provide calling location to emergency
agencies once relocated from the previous installation address. ICC It is
expected that the long-term VoIP solutions will improve from what is possible
in today’s circuit-switched environment, particularly in areas such as
IP-enabled emergency services. However, these efforts will take time and will
best develop by cooperation and not by mandate.
102(a) Do you agree with the above initial views and clarifications with
respect to the requirement of the backup power supply for IP Telephony
services?
146. The ETS Society believes that backup power supply is not required as
IP Telephony services are not a direct substitute for the conventional public
telephone service. Similarly, iBBS also agrees that no backup power supply
obligation should be applied to IP Telephony providers.
147. However, PCCW does not agree with the above views. PCCW
submits that the obligation to provide continuous service, even in the event of a
power failure, is an FTNS licence obligation and hence any operator providing
service under the FTNS licence (regardless of the technology it adopts) must
satisfy this requirement. On this basis, PCCW considers that those IP
Telephony service providers (in a technology neutral regime) offering service
under the FTNS licence should be obliged to provide power backup. SCHSA is
deeply concerned that IP telephony service cannot function normally during
power outage because it is during such a time period that the elderly who live
alone particularly need urgent assistance.
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102(b) Do you consider that the existing backup power supply requirement
for “basic telephone line service” should be extended to the IP Telephony
services?
148. Among the 19 respondents who have submitted views on this issue,
10 of them including PCCW, HGC, CSL, SmarTone, Peoples, ELN, WTIA,
SCHSA, Eric Kwan and Ms. Chan consider that the existing backup power
supply requirement for “basic telephone line service” should be extended to the
IP Telephony services. Specifically, PCCW and SmarTone submit that IP
Telephony services that are intended to be substitutes for traditional voice
services should be subject to the same obligations and hence should be required
to provide backup power. SCHSA recommends mandating the requirement as a
licensing condition and clearly communicating to the customers the impact to
the service due to the failure of public electricity supply during the transition
period. HGC considers that obligation relating to consumer welfare and
protection should not be dropped lightly without full justification.
150. Pacific Supernet submits that backup power should be optional and
indicates that the Internet access is likely to fail during a power outage.
102(c) If the backup power supply requirement for “basic telephone line
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service” is not to be extended to IP Telephony services, what should be done
to protect the interest of customers who may be relying on the telephone line
services for critical applications (e.g. “life-lines”)?
152. ELN does not agree with the proposal and considers that exempting
the IP Telephony services from such an essential service would be taking a
dramatic step backward with respect to public safety and technology
advancement.
153. The other 3 respondents offer some other views. Peoples submits that,
to protect the interests of customers, IP Telephony must be distinguished from
conventional PSTN services through the allocation of special number range and
porting should not be allowed initially. CC suggests that, for certain groups of
the community (for example, the elderly) relying on the “basic telephone line
service” for critical applications such as “life-lines”, the Government should
state clearly in the license provisions that local telephone services provided for
customers who are relying on the telephone line services for critical
applications have to satisfy the backup power supply requirement. Ms. Chan
opines that, if IP Telephony really cannot provide the “basic telephone line
service”, the copper wire telephone service should be maintained to a certain
extent, e.g. at least a building should have one. As the mobile phone or device
is very popular, access to emergency service can be made by mobile phone. In
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considering that some elderly or less advantaged citizen may not afford a
mobile phone, Ms. Chan suggests that some free of charge phone for making
emergency call may be installed just like those we can find in the country park
for the ease of reporting crime or calling for emergency service.
154. OFTA received the views from 20 respondents concerning this issue.
13 of them including PCCW, HGC, WT&T, CM Tel, SmarTone, Peoples, ETS
Society, HKISPA, e-Kong, ELN, Consumer Council, SCHSA and Ms. Chan
agree that IP Telephony services intended as a substitute for the conventional
public telephone service should meet minimum quality standards.
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normal fixed line voice services while IP Telephony services which are not
offered as a substitute for the conventional voice service should only be
required to satisfy certain bare minimum standards.
156. HKBN, CSL, Pacific Supernet, iBBS, WTIA, CompTIA and AT&T
are the 7 respondents who disagree with the proposal of minimum QoS.
CompTIA, WTIA, AT&T, and CSL commonly suggest that QoS of IP
Telephony services should be determined and driven by market. In addition,
CSL considers that quality of service is an issue that is best regulated by the
market and regulators should not impose quality of service standards. However,
if OFTA sets minimum quality standards for conventional telephone services,
then IP telephony service intended to be substitute of conventional telephone
service should also be subject to the same standards in order to ensure a level
playing field between providers. Besides, HKBN believes that providing
precise information to subscribers as to the capabilities and limitation of the
service upon subscription would be more important than setting minimum
quality standards of service.
158. WTIA, ETS Society and Consumer Council share the view that the
Billing and Metering Integrity Scheme (BMIS) may be extended to cover the IP
Telephony services
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services should follow international best practice. iBBS proposes that IP
Telephony service providers can work with broadband providers to provide
certain criteria like minimum delay, jitter, etc. Ms. Chan proposes the following
items as the measures of QoS for IP Telephony:
109(c) Should the customer charters requirement under FTNS and Fixed
Carrier licences be extended to cover the IP Telephony services provided by
PNETS licensees?
162. PCCW, SmarTone, e-Kong, iBBS, Pacific Supernet and HKISPA are
the 6 respondents who do not agree with the proposal. Specifically, PCCW
does not consider it necessary for a customer charter to be introduced for this
group of service providers as this requirement would only serve to increase
their compliance costs. Pacific Supernet submits that customer charter
requirement under FTNS licenses should not apply to IP Telephony since IP
Telephony should be treated as a new class of service. e-Kong proposes that the
requirement should be optional instead of mandatory. HKISPA believes that a
different set of minimum service standards shall be established for the specific
environment of the Internet Protocol.
163. ETS Society, Peoples and ELN do not directly address the question
but opine that the charter requirements should be enforced for IP services that
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are intended to replace PSTN based services.
164. WTIA has a view different from the other respondents. It considers
that the customer charters declared by the operators is not useful enough and
suggests that the TA should consider extending some industry’s Code of
Practice to IP Telephony on areas including (1) protection of customer
information, (2) service contracts, (3) handling of customers’ deposits and
prepayments of charges, (4) verification of the addresses of potential customers
and (5) advertisement.
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