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Press Release
11 Jul 2004
Wharf T&T Seeks Immediate Resumption to Determine "Type II Interconnection" Charges
Wharf T&T confirms it has formally requested the Telecommunications Authority ("TA") to immediately resume the processing of its request to determine the narrowband Local Access Links ("LAL") charges imposed by PCCW-HKT Telephone Limited ("PCCW") and to immediately resume determination proceedings in respect of broadband LAL charges imposed by PCCW, both pursuant to Section 36A of the Telecommunications Ordinance.

Wharf T&T formally requested the TA to determine the narrowband LAL charges in July 2002. TA declined that request. Wharf T&T submitted a formal request to TA to determine the narrowband LAL charges in February 2004. TA decided to put the request on hold pending the Type II interconnection policy review. With the policy review completed, Wharf T&T submitted a formal request to TA on 6 July 2004 to immediately resume the processing of its request for determination.

For broadband LAL charges, Wharf T&T requested a determination by the TA in July 2001. The TA accepted the request in December 2001 and issued a preliminary analysis in February 2003. However, this determination was suspended due to legal proceedings initiated by PCCW. With the policy review completed, Wharf T&T has also submitted a formal request to TA on 6 July 2004 to immediately resume the determination proceeding.

The level of LAL charges is unreasonably high. These charges are required to be cost-based according to regulatory charging principles. The current charges were set in 1999. The current level of LAL charges are excessively high without reasonable adjustment despite the fact that PCCW has been very successful in reducing its operating cost in the past several years since it took control of HKT via financial engineering. Wharf T&T has been seeking a commensurate reduction in LAL charges based on our reasonable assessment and the cost-based spirit. However, PCCW has obstinately refused to review and adjust the said charges. Wharf T&T strongly believes that there is an urgent need to review the current level of LAL charges so as to prevent anti-competition and the abuse of dominance, in the interests of consumers in Hong Kong.
About Wharf T&T Limited

Wharf T&T, licensed in 1995, is one of the fastest growing fixed-line operators with significant investment in its own telecommunications network infrastructure in Hong Kong. Since its debut when the Hong Kong fixed telecommunications market was liberalized, Wharf T&T has continually sought to upgrade its services and deliver competitive products at competitive prices to Hong Kong businesses and consumers.

Wharf T&T is a member of The Wharf Group, one of the largest groups of companies in Hong Kong. The Wharf Group also owns i-CABLE Communications Limited, the No. 1 Television Station in Hong Kong for news, movies and sports, as well as being a leading Internet access service provider.

For further information about both Wharf T&T and The Wharf Group, please visit the Wharf T&T website at www.wharftt.com.

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