Contents of module
- Interconnection Part Five
- Interconnection index
- eLearning main Index
Route Reclassification and Gateway Prices
HKTI requests the TA on a regular basis to reclassify certain routes from "B" to "A" based upon evidence of effective competition so that it may be declared non-dominant on that route.
While effective facilities competition takes time to establish itself, effective services competition comes quickly, either directly, by ISR, which under ITU guidelines ISR should be agreed by the regulatory regimes at both ends of the route, or indirectly by refile. The TA takes both into account in his assessment.
For route reclassification under services competition the TA examines
the levels and past trends of tariffs of the services provided through HKT’s gateway and those of the services provided through the alternative means. Significantly lower retail and wholesale prices for services through the alternative means compared with those for the services through the HKT’s gateway, or downward trends of the prices for services through HKT’s gateway to match the prices of the services through the alternative means, would be objective indications of the competitive pressure on the services through the HKT’s gateway. (Statement 25 November 1998)
For route reclassification under facilities-based competition
the tests for inclusion in Category A will include consideration of whether physical connections could be established to and from gateways in Hong Kong competing with HKT’s gateway. Such connections include both direct correspondent relationships and indirect correspondent relationships via transit arrangements. Again, both type of connections must be able to meet the second test of providing genuine price competition in order to be classified as Category A. (Statement 25 November 1998)
The routes classified as "B" were announced in a Direction, 30 December 1998, which includes as Annex 1 the TA’s Determination. Schedules 1 and 2 set out for each of these routes the gateway prices HKT can charge ETS carriers, and the modified delivery fees HKTI pays to a local network operator for the termination of incoming traffic. Annex 3 of the Direction illustrates with diagrams the possible permutations of international interconnection under “A” and “B” route arrangements.
It should be noted that under the Direction, number translation by a local network operator of an incoming call which results in that number not being the number dialled by the originating party outside Hong Kong requires prior approval of the TA. This is to prevent the ‘capture’ of incoming calls by local network operators for the purpose of ‘capturing’ the LAC or delivery fee and then forwarding as ‘transit’ the call to the legitimate local customer access network provider.