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PCCW Sues Hong Kong Telecoms Regulator

by Mary Swire, for LawAndTax-News.com, Hong Kong

21 May 2004

Hong Kong telecoms giant, PCCW revealed this week that it has launched a lawsuit against the jurisdiction's telecommunications regulator over a review of the charges levied by the firm on international direct dialing (IDD) providers using its fixed-line network.

According to a South China Morning Post report, PCCW has filed for judicial review in the High Court over the study, which was conducted by the Office of the Telecommunications Authority (OFTA).

The provider explained that despite making promises that the study did not constitute a policy review, following its completion, OFTA announced that it would be phasing out the local loop element of the charges imposed by PCCW on its smaller rivals.

Arguing that it was inappropriate to remove the local loop cost because: "One of the objectives of the local access charge regime generally is to send appropriate buy-or-build signals," PCCW suggested that the regulator's study had constituted a policy review, with adverse consequences for the firm.

The writ went on to add that this change applied to it alone, and appeared to be based on its dominant position within the market. However, PCCW observed that:

"There has been no reasoned finding by the respondent that the applicant is dominant in the relevant telecommunications market."

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