. /.  WORLD TRADE  
ORGANIZATION  S/C/N/314 
28 January 2005 
 
 (05-0349) 
Council for Trade in Services Original:   English 
   
NOTIFICATION PURSUANT TO ARTICLE III:3 OF THE 
GENERAL AGREEMENT ON TRADE IN SERVICES 
 
  The following notification, dated 26 January 2005,  from the delegation of Hong Kong, China, 
is being circulated to the Members of the Council for Trade in Services. 
 
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1. Member notifying: 
 Hong Kong, China 
 
2. Notification under: 
Article III, paragraph 3 of the General Agreement on Trade in Services 
 
3. Date of entry into force: 
The external telecommunications market has b een fully liberalized since 1 January 2003. 
 
Duration:  
Indefinite 
 
4. Agency responsible for implementation  and enforcement of the measure: 
Telecommunications Authority (“TA”) 
 
5. Complete description of the measure
1 indicating the modes of supply covered, the effect 
on trade in services (e.g., restrictions/liberalization measures) and the impact of the 
measure on commitments in the Member’s schedule and Article II (MFN) exemption 
list, if relevant: 
Pursuant to a policy statement issued on 20 January 1998 and the Order of the Chief 
Executive in Council made on 4 May 1999, the exte rnal telecommunications market has been 
progressively liberalised as follows:   
 
• ETS operators have been allowed to re file traffic through Hong Kong between 
locations at the distant ends of Category-A routes2 since 1 January 1999. 
                                                      
1 Including international agreements, recognition measures or other types. 
2 Category-A routes are routes over which it would be possible for genuine price competition to occur through 
direct International Simple Resale (ISR) connection, indi rect routing through refiling, direct physical connection 
through competitive external gateway facilities or such connection indirectly established via transit 
arrangements. S/C/N/314 
Page 2  
 
 
• Three local FTNS licensees (i.e. Hutchi son Global Communications Limited, Wharf 
T & T Limited and New World Telecommuni cations Limited) which obtained their 
FTNS licences in 1995 have been allowed to  operate external telecommunications 
facilities since 1 January 2000. 
 
• The non-cable based external telecommunica tions facilities (primarily satellites or 
wireless facilities) market has been liberalised since 1 January 2000. 
 
• Direct investment in bringing physical  cables (including submarine or over land 
cables) to Hong Kong (i.e. excluding “I ndefeasible Rights of Use”) have been 
allowed in the external telecommunications  facilities market since 1 January 2000. 
 
• External telecommunications market has been  fully liberalised since 1 January 2003. 
 
6. Members specifically affected, if any: 
None 
 
7. The texts are available from: 
 
• The Government’s policy statement dated 20 January 1998 entitled “Liberalisation of 
Hong Kong’s External Telecommunications” is available from: 
 
http://www.ofta.gov.hk/esb/980120/pl120e.pdf
 
 
• The Legislative Council Brief dated 4 May 1999, which provided information on the 
Order of the Chief Executive in Council on the progressive liberalisation of the external FTNS market is available from: 
 
http://www.ofta.gov.hk/itbb/legb-990505.pdf
 
 
Office of the Telecommunications Authority 
Telephone : (+852) 2961-6333 Telefax :  (+852) 2803-5110 Website : www.ofta.gov.hk
  
E-mail Enquiry : webmaster@ofta.gov.hk   
 
The documents are also available from th e Secretariat and Hong Kong, China’s GATS 
enquiry point. 
  
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