Goal to build up HK as a leading digital city reaffirmed

September 17, 1999

Hong Kong and Finland have common IT aspirations in that both strive to become the hub of IT development in their respective regions and both are in the forefront of making innovative use of information and communications technologies.

This was stated by the Secretary for Information Technology and Broadcasting, Mr K C Kwong, when addressing a seminar on Finnish IT and Software Solutions today (Friday).

Mr Kwong told an audience of Finnish IT companies that, during his recent visit to Finland earlier this month, he was impressed by the advances made in Finland in telecommunications and IT applications, and the use of these in building up Helsinki as a digital city.

"We too are working hard to build up Hong Kong as a leading digital city in the globally connected world," he said. "This is the goal we set for ourselves in our 'Digital 21' IT Strategy which sets out the various initiatives for achieving that goal."

He outlined four key initiatives under the 'Digital 21' IT Strategy.

First, the Government is creating an environment which further encourages the development of high capacity telecommunications infrastructure. Judging by world standard, Mr Kwong said, Hong Kong is already in a leading position.

Citing examples, he said Hong Kong's broadband network covers practically all business buildings as well as 75 per cent of all households, which is expected to grow to 80 per cent by the end of this year; there are four local fixed telecommunications network operators in Hong Kong and a fifth one, based on the local cable TV network, will be licensed shortly; 133 Internet Service Providers serving about 1 million local Internet users; six mobile telecommunications licensees operating 11 networks on the basis of four digital standards; and the highest penetration rate of mobile telephones in Asia, at 49 phones per 100 inhabitants.

"But we are not complacent, we have decided to introduce even more competition in the markets through progressive liberalisation of the telecommunications markets," Mr Kwong said.

The second initiative is the establishment, through the Hongkong Post, of a public key infrastructure to enable secure transactions over the Internet. The Hongkong Post will be providing the public key and certification services by the end of this year.

As for the third initiative, Mr Kwong said the Government was taking the lead in electronic business by providing public services on-line under the Electronic Service Delivery Scheme. The scheme will not only improve the quality of services provided by the Government, but also help to create an environment and a climate conducive to the development and take-up of electronic commerce, he added.

The establishment of proper legal framework to provide certainty for electronic transactions is the fourth initiative.

"With all those initiatives, we shall see the wider adoption of e-commerce in Hong Kong and a substantial growth in demand for high quality IT and software solutions to support all these developments.

"We look to the world IT market both as a source of supply and a source of partnership in this exciting endeavour of ours.

"With the proven capabilities of Finland in a good number of areas of IT and communications, I am confident that you will find excellent and rewarding opportunities for doing business, either by yourselves or in partnership, in Hong Kong," Mr Kwong said, adding that they should also consider using Hong Kong as a bridge to the enormous market in the Mainland of China.

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