ARTICLE
21 October 2002

OFTA Issues a Class Licence for the Provision of In-building Telecommunications Systems

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The issue of the Class Licence comes following the required process of consultation which took place in March/April 2002. In order to fall within the ambit of the Class Licence the proposed operator must comply with various conditions and fulfil certain requirements, some of which are summarised below.
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Co-written by Stephen Bureaux (solicitor)

Summary

On 11 October 2002, the Office of the Telecommunications Authority (OFTA) issued the first of the class licences envisaged by the Telecommunication (Amendment) Ordinance 2000, for In-building Telecommunications Systems.

Full Article

The issue of the Class Licence comes following the required process of consultation which took place in March/April 2002. In order to fall within the ambit of the Class Licence the proposed operator must comply with various conditions and fulfil certain requirements, some of which are summarised below.

An in-building telecommunications system can be a wireline or wireless system which is installed inside a building (or buildings within the same development) for providing telecommunications services to the residents. This, the first of the class licences, is intended to encourage and enable "intelligent buildings" through which residents gain access to enhanced technological resources from their own premises. Perhaps the most significant of the requirements is that the in-building telecommunications system operator must be the property owner, an incorporated ownership company, a owners' trustee, or an entity specifically authorised by owners of the building who own not less than 50% of the property.

The types of telecommunications services that may be provided under the Class Licence include:

  • Access to enable public telecommunications or broadcasting operators to interconnect with the systems and provide services to the building residents. This would include telecommunications and broadcasting services such as broadband and pay TV services.
  • All forms of intra-building telecommunications and broadcasting services to the residents and occupiers. Internet services may not be offered so that the services cannot be accessible from outside the building (i.e. there must be no outgoing connection).

The operator must offer non-discriminatory interconnection access to other telecommunications operators. OFTA has the power to determine fees for interconnection in the event that negotiations between the operators fail.

Finally, it should be noted that the Class Licence or the operation of any services under the Class Licence, do not affect the existing rights of the Local Fixed Telecommunications Network Services Operators to gain access to building to install their own equipment to reach the building's residents.

The original email legal update is copyright Johnson Stokes & Master at the date written first above. All rights reserved. This publication provides information and comments on legal issues and developments of interest to our clients and friends. The foregoing is intended to provide a general guide to the subject matter and is not intended to provide legal advice or a substitute for specific advice concerning individual situations. Readers should seek legal advice before taking any action with respect to the matters discussed herein. Please also read the JSM legal publications Disclaimer.

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ARTICLE
21 October 2002

OFTA Issues a Class Licence for the Provision of In-building Telecommunications Systems

Hong Kong Strategy

Contributor

Mayer Brown is a distinctively global law firm, uniquely positioned to advise the world’s leading companies and financial institutions on their most complex deals and disputes. We have deep experience in high-stakes litigation and complex transactions across industry sectors, including our signature strength, the global financial services industry.
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