LC Q8: Hong Kong Internet Exchange

Following is a question by the Hon Sin Chung-kai and a written reply by the Secretary for Commerce, Industry and Technology, Mr Henry Tang, in the Legislative Council today (May 21):

Question:

It has been reported that as Hong Kong Internet Exchange (HKIX) operated by the Chinese University of Hong Kong (CUHK) might cease operation due to CUHK's financial constraints, the Commerce, Industry and Technology Bureau (CITB) has indicated that it would discuss with CUHK HKIX's financial provision and source of funding. In this connection, will the Government inform this Council:

(a) whether it knows HKIX's annual operation costs and its source of funding;

(b) of the progress of discussion between CITB and CUHK; whether they have drawn up a discussion timetable;

(c) whether it has studied adopting its practice in dealing with the registration of internet domain names last year, and set up a non-profit-making and non-statutory corporation to take over HKIX's function in local internet data exchange; and

(d) whether it has formulated policies and measures to set up an internet exchange centre in Asia, encourage local internet service providers to link up with network operators in the Mainland, and encourage international telecommunications carrier companies to roll out their cable networks in Hong Kong, with a view to promoting the development of a commercial data exchange centre and strengthen Hong Kong's status as an information hub in Asia; if it has, of the details of such policies and measures; if not, the reasons for that?

Reply:

Madam President,

(a) According to the information provided by the Chinese University of Hong Kong (CUHK), the annual operating expenditure of the Hong Kong Internet Exchange (HKIX) is approximately $1 million, which is met by CUHK from its University general funds.

(b) In a statement issued in March 2003, CUHK pointed out that the media report, which suggested that HKIX was under threat of closure, was incorrect, and the university has pledged to work with all parties in the public and private sectors to seek resources for the further development and enhancement of HKIX. The Commerce, Industry and Technology Bureau is actively discussing with CUHK about the operation of HKIX, with a view to reaching a sustainable arrangement that will facilitate long-term operation of HKIX. It is anticipated that the work will complete in the third quarter of this year.

(c) Established by CUHK in 1995 and operated by the university, HKIX provides Internet exchange service for Hong Kong. HKIX has been operating smoothly and the Government has no plan to set up a new organisation to take over the local Internet exchange function.

(d) The Government has discussed with the industry about the possibility of setting up an Asia-Pacific Internet exchange in Hong Kong to serve as the exchange for Internet traffic within the region. We encourage the industry to attract early connection of Internet exchanges and major operators in the Mainland and other areas in the Asia-Pacific region to Hong Kong, with a view to promoting the development of Hong Kong as a regional Internet exchange hub. The Government will continue to discuss with the industry and relevant organisations elsewhere to solve related commercial and operational issues as soon as possible. Meanwhile, with the full liberalization of Hong Kong's external telecommunications facilities and services markets, several submarine and overland cables linking Hong Kong with the rest of the region are already in place. The charges for external telecommunications lines linking up with Hong Kong have also become very competitive. These, together with the world class telecommunications infrastructure in the territory, will enhance and strengthen Hong Kong's status as a telecommunications and information services hub in the region, and increase the prospect of Hong Kong developing into an Asia-Pacific Internet exchange hub.

Wednesday, May 21, 2003

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