SITB outlines for British businesses HKSARG's strategy for promoting IT

September 7, 1999

The establishment of the Information Technology and Broadcasting Bureau has provided a focal point for setting and implementing policies in a coherent way in the IT, telecommunications and broadcasting fields in Hong Kong.

This was stated by the Secretary for Information Technology and Broadcasting, Mr K C Kwong, when he outlined the major roles of the Bureau during a luncheon meeting with members of the Hong Kong Association in London today (Tuesday).

Mr Kwong said that since the establishment of the Bureau in April last year, it had carried out fundamental reviews of the regulatory regimes for the local telecommunications and broadcasting markets. It has also formulated the "Digital 21" IT Strategy for the territory.

He told the gathering that Hong Kong had one of the most advanced telecommunications infrastructures in the world, with a broad range of efficient and innovative services available at very reasonable costs.

Citing examples, he said Hong Kong had fully digitised networks installed since 1995; a broadband coverage to practically all commercial buildings and 75 per cent of households, which is expected to reach 80 per cent by the end of 1999; a mobile telephone penetration rate of 49 per cent, the highest outside the Scandinavian countries; a total submarine cable capacity of 19.1 Giga-bits-per-second, which is set to double within a year; and a completely liberalised market for Internet services, with over one million Internet users.

"All the above are the results of our efforts over the years to encourage competition and innovation under an open, fair and predictable telecommunications regulatory regime," he noted.

Knowing that the rapid development of the Internet demands even faster and higher capacity communication systems, Mr Kwong said the Government had liberalised the external telecommunications services market since January this year and would progressively liberalise the external telecommunications facilities market from 1 January 2000, with the first phase covering wireless facilities (primarily satellite) and new submarine or overland cables.

"We are confident that these liberalisation measures will bring additional telecommunications capacity at more competitive prices to Hong Kong and this will in turn benefit consumers and businesses," he said.

Mr Kwong also told the gathering that the Bureau had placed heavy emphasis on the promotion of electronic commerce in Hong Kong. To this end, he continued, it is pursuing several initiatives including the establishment of a proper legal framework for electronic transactions and a public key infrastructure to ensure security and non-repudiation of the transactions.

To further encourage the adoption of electronic commerce, the Government will put its services on-line under the Electronic Service Delivery Scheme. "Our aim is not only to provide more efficient and better quality services to the public through electronic means, but also to encourage the community to accept electronic commerce as an integral part of their daily lives," he explained.

The development of a Cyberport is another major initiative to promote IT and services in Hong Kong. Mr Kwong said the project was aimed at creating a strategic cluster of leading IT and information services companies and a critical mass of professional talents in Hong Kong.

Apart from an ultra-modern intelligent building complex equipped with state-of-the-art telecommunications and information backbone to meet the needs of leading multinational and local IT and services companies, the Cyberport will provide a range of shared facilities for tenants, such as a media laboratory and a cyber library.

The Cyberport can accommodate some 130 companies and create 12,000 jobs. Mr Kwong was pleased to note that so far, 12 leading international IT and information services companies had already signed letters of intent to become anchor tenants. Phase I of the Cyberport will be available for occupation by end 2001/early 2002.

In closing, Mr Kwong said that following the signing of the Memorandum of Understanding (MOU) on IT cooperation between the HKSAR Government and the UK Government last June, two secondees from British industry were being sent to the British Consulate General in Hong Kong to act as Trade Commissioners specialising in IT.

"Their primary functions will be to evaluate where UK companies can play a role in the development of Hong Kong's IT and multimedia sector and prepare a strategy to maximise UK companies' involvement.

"I am sure the fruits of their labour will be helpful to both UK and Hong Kong companies," he said.

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