Communications, the Media and Information Technology

Excellent communications have been an essential element in Hong Kong’sdevelopment as an international business and financial centre. The city has one of themost sophisticated telecommunications markets in the world, and its people are keptwell informed by an efficient and vigorous media.

Hong Kong has a fully liberalised and highly competitive telecommunicationsmarket. Since the launch of third generation (3G) mobile services in 2004, the take-up rate has grown rapidly. By the end of the year, more than 1 331 000 mobilephone users were enjoying new services such as video calls and interactive real-timegaming. The Government is considering allocating spectrum for the provision ofservices based on broadband wireless access (BWA) technologies to promote the useof broadband technologies even further.

Hong Kong has a vibrant broadcasting industry offering a wide range of services.TV viewers can access four domestic channels in Chinese and English provided by twocommercial broadcasters free of charge, and some 240 local and overseas televisionchannels providing programmes in different languages provided by three licensedoperators on subscription. There are three radio stations, including one run by theGovernment called Radio Television Hong Kong (RTHK), broadcasting on 13 channels.Hong Kong is a regional broadcasting hub with 14 licensed satellite televisionbroadcasters providing about 150 channels for the Asia-Pacific region.

Broadcasters are embracing new technologies. Terrestrial television broadcastersare preparing for the launch of digital broadcasting in 2007. The Governmentcontinues to review the regulatory regime in the light of technological and marketconvergence and new services coming on stream such as mobile television.

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Chapter 17

Communications, the Media and Information

TechnologyHong Kong people are among the most informedin the world. At last count in 2006, some 71 percent of households had broadband connections,the second highest per person in Asia. Mobile

phones are ubiquitous too, with a penetration rateof 137 per cent, also one of the highest in theworld. Over 700 000 households subscribe to

Internet Protocol Television (IPTV) services, makingHong Kong the biggest user of IPTV in the world,

well ahead of all developed economies.

Hong Kong is one of the world’s major film production centres. It produced 51 films in 2006. The film industry is a flagship of Hong Kong’s creative industries.The Government is committed to promoting its development and has introduced ahost of measures to assist it in strengthening its competitiveness in both the local andglobal markets.

The Mass Media

Hong Kong’s mass media at the end of 2006 included 49 daily newspapers, anumber of electronic newspapers, 699 periodicals, two domestic free televisionprogramme service licensees, three domestic pay television programme servicelicensees, 13 non-domestic television programme service licensees, one government-funded public service broadcaster and two sound broadcasting licensees.

The availability of the latest telecommunications technology and keen interest inHong Kong’s affairs have attracted many international news agencies, newspaperswith international readership and overseas broadcasting corporations to establishregional headquarters or representative offices here. The production of regionalpublications in Hong Kong underlines its importance as a financial, industrial, tradingand communications centre.

The Press

The registered Hong Kong press at year-end included 22 Chinese-languagedailies, 14 English-language dailies (one of them in Braille and one in internetedition), eight bilingual dailies and five in Japanese. Of the Chinese-language dailies,15 cover mainly local and overseas news, five specialise in finance and the rest coverhorse racing. The larger papers include overseas Chinese communities in theirdistribution networks and some have editions printed outside Hong Kong, inparticular the United States, Canada, the United Kingdom and Australia.

One of the English dailies publishes a daily Braille edition, in conjunction withthe Hong Kong Society for the Blind, as well as an internet edition. Two Chinesedailies and four bilingual dailies are published on the Internet. Hong Kong is the basefor a number of regional publications such as the Far Eastern Economic Review andbusiness and trade magazines. The Financial Times, The Wall Street Journal Asia, USAToday International, International Herald Tribune and The Nihon Keizai Shimbun areprinted in Hong Kong.

Several organisations represent people working in the news media in HongKong. The Newspaper Society of Hong Kong represents Chinese and Englishnewspaper proprietors. It is empowered to act in matters that affect the interests ofits members. The Hong Kong Journalists Association is the biggest industry-wideunion of journalists and one of the most active. Formed in 1968, it has more than400 members. It pays special attention to a range of press freedoms and ethicsconcerns as well as to professional training and the handling of labour disputes.Other media organisations include the Hong Kong News Executives’ Association, theHong Kong Federation of Journalists and the Hong Kong Press PhotographersAssociation. The long-established Foreign Correspondents’ Club offers its members

Communications, the Media and Information Technology342

social facilities and a range of professional activities, including news conferences andbriefings.

During the year, the Mass Communications Training Board of the VocationalTraining Council continued to run training programmes to help people working in themedia, advertising and public relations sectors to improve their skills. An allocation of$220,000 from the council enabled the board to arrange courses, talks and seminarswith professional bodies such as the Hong Kong News Executives’ Association, theHong Kong Advertisers Association, the Hong Kong Public Relations Professionals’Association, the Hong Kong Journalists Association and the Hong Kong Federation ofJournalists.

Information Policy

The Secretary for Home Affairs has overall responsibility for policy formation oninformation and related matters, while the Director of Information Services advisesthe Government on the presentation of its policies, and on public relations mattersgenerally, in Hong Kong and overseas. The main aims are to ensure an openexchange of information in the community, to keep the media fully informed of theGovernment’s plans, policies and activities, and to promote Hong Kong’s imageabroad.

Information Services Department

The Information Services Department (ISD) serves as the Government’s publicrelations consultant, news agency, publisher and advertising agent. It provides thelink between the Administration and the media and, through the latter, enhancespublic understanding of government policies, decisions and activities.

The department comprises four divisions: Local Public Relations, Publicity andPromotions, Public Relations Outside Hong Kong, and Administration.

The Government News and Media Information System (GNMIS) channels pressreleases, photographs and video clips through a single system accessible to journalistson the Internet.

All press releases are also uploaded onto the Government’s internet home page,www.gov.hk. In addition, major government press conferences and events, includingthe annual Policy Address by the Chief Executive and the Budget Speech by theFinancial Secretary, are webcast live on the Internet.

The Government’s electronic bulletin, news.gov.hk, serves as a communicationschannel to enhance ties between the Government and the media, business, industry,academia and the community, presenting news and information throughout the day,seven days a week, in a dynamic multimedia format. By year-end, news.gov.hk hadposted 8 848 news and features stories. It had also developed and posted dozens ofshort videos to its Reel HK page, and added more than 70 new image collections toits Photo Gallery page. Visitors to the site may sign up for free daily e-mails of newssummaries, weekly City Life alerts and HK for Kids updates. The e-bulletin now hasabout 7 500 subscribers.

Communications, the Media and Information Technology 343

The e-bulletin attracted about 4.6 million visitors and more than 41 million pageviews during 2006.

Local Public Relations Division

The division oversees the work of Information Grade officers seconded togovernment bureaux and departments. They serve as Press Secretaries to PrincipalOfficials or work in the 35 bureau and department information and public relationsunits. They help formulate and implement public relations and publicity policies,advise their bureau or department heads on public relations matters, answer mediaenquiries and questions from the public, prepare press releases for the media, andorganise press conferences and special promotional activities.

The News Sub-division operates a 24-hour press enquiry service. Duringtyphoons, major disasters and other emergencies, ISD will open its CombinedInformation Centre to disseminate information on the prevailing situation.

The Media Research Sub-division keeps the Government informed of publicopinion expressed in the news media. It produces daily reports summarising news andeditorial comments in the Chinese and English press as well as on radio andtelevision. It also produces special reports on subjects of interest to the Government.

Publicity and Promotions Division

The Publicity and Promotions Division helps bureaux and departments mountpublicity campaigns and related activities locally and outside Hong Kong. It isresponsible for advertising, creative design, photography and many of theGovernment’s publications. The larger local campaigns conducted or supported bythe division during the year covered a wide range of subjects from anti-smoking tocivic education.

It also assists in the organisation of major promotional activities ranging fromhigh-level business conferences, keynote addresses and exhibitions to social andcultural events outside Hong Kong.

The division handles about 4 000 titles and produces a wide variety ofgovernment publications, including the Hong Kong Annual Report and its internetversion. A large number of free publications such as booklets, leaflets, fact sheets,brochures, posters and government forms are distributed by the division each year. In2006, the division sold 428 470 government books and miscellaneous printed itemsthrough its sales outlet and online bookstore. Photographs are also sold by thedivision.

Public Relations Outside Hong Kong Division

The division helps develop and implement the Government’s overseas publicrelations and communications strategy. Its Overseas Public Relations Sub-divisionworks in concert with the Government’s Economic and Trade Offices (ETOs) topromote and monitor Hong Kong’s image overseas. It also works closely with almost100 foreign media organisations based in Hong Kong, handling press enquiries,disseminating news and arranging interviews. It runs a programme for visiting


journalists, produces summaries of overseas reports on Hong Kong and distributespromotional material on Hong Kong worldwide.

The Brand Management Unit is responsible for Brand Hong Kong, the visualidentity of the Hong Kong Special Administrative Region (HKSAR). The brand is usedto promote Hong Kong as Asia’s world city through a variety of channels locally andoverseas. The unit, in conjunction with government departments and the privatesector, organises activities for international audiences overseas. In Hong Kong, itshowcases the city's attractions for visitors and the business community.

The Visits and International Conferences Sub-division runs the department’sSponsored Visitors Programme through which opinion-formers and decision-makersare invited to visit Hong Kong as guests of the Government to enhance theirunderstanding of the SAR. The sub-division also arranges programmes for non-sponsored visitors coming to Hong Kong on private trips. In addition, it runs anOverseas Speakers Programme to enhance foreign investors’ understanding of thecompetitive edge and latest developments of Hong Kong. Arrangements are madefor senior government officials and prominent local personalities to address targetedaudiences abroad.

Promoting Hong Kong Overseas

Europe

The Brussels ETO organised events in 14 European cities from late January toFebruary to celebrate Chinese New Year. The Hong Kong Academy for PerformingArts was invited to perform Chinese music during some of the events, which wereattended by about 3 000 guests from diplomatic, political and business circles. PrimeMinister Guy Verhofstadt of Belgium was the guest of honour at the Brusselsreception and Mr Tom Kitt, Ireland’s Minister of State at the Department of theTaoiseach (Prime Minister), was the guest of honour in Dublin.

The Chief Executive, Mr Donald Tsang, visited Belgium and France in November.In Belgium, he met Prime Minister Guy Verhofstadt, Finance Minister Didier Reyndersand other senior officials. He also had meetings with the President of the EuropeanParliament, Josep Borrell Fontelles and the President of the European Commission,José Manuel Barroso. Mr Tsang and Mr Barroso issued a joint statement after theirmeeting, pledging to boost links in areas of common interest. Mr Tsang attended andspoke at a business seminar organised by the Hong Kong Trade Development Council(HKTDC), a luncheon co-organised by Brussels ETO and the Royal Institute forInternational Relations, and a gala dinner co-organised by Brussels ETO and theBelgium-Hong Kong Society.

In France, the Chief Executive met President Jacques Chirac and Mr EdouardBalladur, President of the National Assembly Foreign Affairs Commission, andattended a dinner hosted by Mr François Loos, the Minister Delegate for Industry. Hespoke at various business events including the opening of the second Plenary Sessionof the Hong Kong-France Business Partnership of the HKTDC, a breakfast meetingwith French Chief Executive Officers and a luncheon seminar co-organised with the


French Institute of International Relations. He attended and gave a keynote speech atthe Hong Kong-Guangdong Business Conference together with Mr Huang Huahua,Governor of Guangdong province.

Brussels ETO, with the support of the Hong Kong International Film FestivalSociety, arranged the annual European tour of the Hong Kong Film Panorama. Thefestival, showcasing Hong Kong’s most recent productions, was held in Munich,Hamburg, Amsterdam, Antwerp, Brussels, Vienna and Barcelona. It also made a stopin Venice. A Hong Kong photo exhibition was held in Berlin’s Town Hall to coincidewith the Chinese New Year celebrations, and in Helsinki in March and April.

The London ETO made its second appearance in the City of London Lord Mayor’sShow with a spectacular, 52-foot high Bun Tower, complete with bun-pickers and5 600 buns. The seven-tonne Bun Tower was modelled closely on the Cheung Chauoriginal and was erected between the Bank of England and the Lord Mayor’s officialresidence, Mansion House. About 500 000 people attended the show, which wasbroadcast nationally in Britain to about 2 million viewers and also to the BBC’s 300 million global audience.

London ETO organised Chinese New Year receptions in London, Edinburgh,Belfast, Warsaw, Zurich, Budapest, Prague, Oslo, Moscow and St Petersburg (the lastthree including business seminars).

North America

In the summer of 2006, the Washington ETO presented its 11th annual Made inHong Kong Film Festival, co-sponsored by the Smithsonian Institution’s Freer Galleryof Art.

In September, the Secretary for Justice, Mr Wong Yan Lung, visited Washington,DC. Mr Wong met Associate Justice of the US Supreme Court, Mr Antonym Scalier;the Attorney General of the US, Mr Alberto Gonzales; and Under Secretary forDemocracy and Global Affairs, US Department of State, Ms Paula Dobriansky. Hespoke at two forums organised by the Brookings Institution and the GeorgetownUniversity Law Center.

During the year, the Toronto ETO organised a series of high-profile events topromote Hong Kong. The highlights included a two-day national business forum on‘Your Smart Link to China: Hong Kong’ in Winnipeg, and the launching of the ’ChinaInitiative’ together with the Ontario Chamber of Commerce, linking the chamber’s57 000-member companies with Hong Kong trade organisations. The Hong Kongspirit and its evolution as a key global economic and cultural player were celebratedin a ‘Tribute to Hong Kong’ gala, tied in with four full-house performances of ‘Lovein a Fallen City’ by the Hong Kong Repertory Theatre in Toronto. Special film eventswere held in Toronto and Vancouver to feature Hong Kong film directors such as AnnHui and Patrick Tam.

The Secretary for Justice also visited New York in September and spoke at aluncheon co-hosted by New York ETO, Hong Kong Association of New York, TheAssociation of the Bar of the City of New York and the American Foreign Law


Association. He also met members of Human Rights Watch and spoke at ColumbiaUniversity.

The ETO was the presenting sponsor of the Hong Kong Repertory Theatre’s USdebut performance of ‘Love in a Fallen City’ in New York in May. The event was partof the ETO’s promotion of Hong Kong as a vibrant cultural and arts centre.

New York ETO also promoted Hong Kong films in Atlanta, Chicago and NewYork, and held an event to pay tribute to Hong Kong actor Tony Leung Ka Fai at theBrooklyn Academy of Music. It was a sponsor of the 29th Asian AmericanInternational Film Festival in July, organised by Asian Cinevision.

The Secretary for Justice visited the San Francisco Bay Area in September as partof his US tour. He spoke at various forums including a meeting hosted by the BarAssociation of San Francisco, a business luncheon organised by San Francisco ETO,and a seminar at the Law School of the University of California (UC), Berkeley. He alsoofficiated at San Francisco ETO’s 20th Anniversary reception.

During the year, the San Francisco ETO organised a business seminar, ‘HongKong: Today’s advantages for your tomorrow in China’ in Silicon Valley, internationalfilm festivals in San Francisco, Seattle and Hawaii, and the San Francisco InternationalDragon Boat Festival. A newspaper supplement on Hong Kong as a gateway to Chinawas produced and published in the business journals of eight different cities — SanDiego, Portland, Dallas, Austin, Denver, Seattle, Phoenix and Honolulu.

North Asia

Tokyo ETO held a series of luncheon seminars on ‘Hong Kong — NewOpportunities; New Attractions’ in conjunction with the Hong Kong TradeDevelopment Council and the Hong Kong Tourism Board. The seminars, which tookplace in Osaka, Fukuoka and Kagoshima, were attended by more than 500 guestsfrom the political, business, financial and media sectors. A similar luncheon seminarwas held in Seoul and attended by over 200 guests.

The third Hong Kong Sedan Chair Race, co-organised by the Tokyo ETO,Yokohama City Government and other parties, was held on November 3 inYokohama. More than 400 competitors took part in the event which attractedthousands of spectators. The race helped boost the world environmental conservationcampaign, ‘MOTTAINAI’. The ETO co-hosted a cocktail reception with the Hong KongTourism Board to solicit support for the Hong Kong-based Asian Youth Orchestraperformance in Tokyo in August.

Southeast Asia

In July, Mr Donald Tsang made his first official visit to Singapore in his capacityas Chief Executive. He called on the Prime Minister, Mr Lee Hsien Loong; the SeniorMinister, Mr Goh Chok Tong; and the Minister Mentor, Mr Lee Kuan Yew. He metsenior business figures and briefed them on Hong Kong’s economy and businessenvironment.


In September, the Financial Secretary, Mr Henry Tang, attended the annualmeetings of the International Monetary Fund and the World Bank Group inSingapore. He held bilateral talks with finance ministers and central bankers of othereconomies and promoted Hong Kong in his discussions with representatives of theinternational financial community and credit rating agencies.

In June, the ETO in Singapore helped organise a five-day study tour of thePhilippines and Cambodia by a high-level delegation from Hong Kong’s constructionindustry.

A series of talks on the Pan-Pearl River Delta Cooperation Forum and the CloserEconomic Partnership Arrangement were held in key cities of Southeast Asia topublicise these two Hong Kong-Mainland China accords, and to promote Hong Kongas the gateway to the vast Mainland market.

The ETO joined forces with the Hong Kong Tourism Board to stage ‘DiscoverHong Kong Year’ regional fairs in Singapore, Kuala Lumpur, Bangkok and Manila inJanuary and February.

In July, the ETO co-sponsored a performance by the Hong Kong Children’sSymphony Orchestra in Singapore. In September, the ETO presented the first everHong Kong Film Festival in Singapore and the region, featuring nine Hong Kongmovies.

Australia and New Zealand

Mr Henry Tang made his first visit to New Zealand and Australia as FinancialSecretary in May. He met the Prime Minister, the Deputy Prime Minister and Ministerfor Finance of New Zealand, as well as the Treasurer, the Minister for Foreign Affairsand the Attorney-General of Australia. Mr Tang delivered a keynote address at a galadinner hosted by the Asia Society Australasia Centre; launched the 2006 Hong KongShopping Festival and the Mid-Autumn Lantern Celebration organised by the HongKong Tourism Board; and was guest of honour at a public concert given by the HongKong Chinese Orchestra.

To complement Mr Tang’s visit, Sydney ETO commissioned two special reportsabout Hong Kong in the national dailies of New Zealand and Australia.

On the cultural front, the office joined forces again with organisers of theSydney Film Festival, the Melbourne International Film Festival and, for the first time,the Brisbane International Film Festival, to present a selection of Hong Kong films.

Government Home Pages on the Internet

Among other measures for ensuring openness, transparency and accountability,the Government uses the Internet to disseminate information on its policies, servicesand activities and to communicate with the public. All bureaux and departmentsproduce their home pages in Chinese and English. Thematic home pages are alsoproduced for special events and topics. These home pages can be accessed throughthe GovHK at www.gov.hk.


The GIC provides 24-hour news updates, consultation papers and topicalinformation to enable the public to keep track of local developments and importantannouncements. It is also a portal to a wide range of electronic services of variousdepartments and agencies, including the submission of tax returns, appointmentbooking service for the Hong Kong Smart Identity Card replacement exercise,payment of government fees and the purchase of government publications.

Code on Access to Information

The HKSAR believes in an open and accountable government. To ensurereasonable access to government information, an administrative Code on Access toInformation now applies to all government bureaux and departments, which arecommitted to making information available to the public.

The code provides for a set of rules to meet public expectation of greatergovernment transparency. It sets out the types of government information to whichthe public has access and lists categories of exemptions to ensure appropriateprotection of confidential and sensitive information held by the Government andinformation involving personal privacy and commercial sensitivity. The public maycomplain to The Ombudsman about government bureaux and departments that failto respond to requests for information in accordance with the code.

Protection of Privacy with Respect to Personal Data

The Personal Data (Privacy) Ordinance is designed to protect the privacy ofindividuals in relation to their personal data. The ordinance provides for theappointment of a Privacy Commissioner for Personal Data to monitor, supervise andpromote compliance with the ordinance.

Information Technology

Digital 21 Strategy

The Government is committed to keeping Hong Kong at the forefront ofinformation and communications technology (ICT) development. The Digital 21Strategy, first instituted in 1998 and updated in 2001 and 2004, is the guideline forICT development in Hong Kong. Since the launch of the strategy, good progress hasbeen made in bringing about the right environment, infrastructure, skills and cultureto encourage the development and adoption of ICT by the whole community.

To keep in step with the advances in technology and the changing needs of thecommunity, the Government embarked on the latest round of review of the Digital21 Strategy in 2006. The consultation document on the draft 2007 Digital 21Strategy was released in mid-October for public consultation. After considering thepublic’s comments, the Government will publish the 2007 Digital 21 Strategy duringthe first half of 2007.

Driving E-business

The Government is committed to providing the necessary infrastructure for e-business to prosper. To do that, the Electronic Transactions Ordinance (ETO) was


enacted in 2000 and updated in 2004 to provide a legal framework for the conductof secure electronic transactions.

There are now one public and two private certification authorities (CAs)recognised under the ordinance, which issue digital certificates for use by thecommunity to conduct electronic transactions in a safe manner. Since 2003, thepublic CA, or the Hongkong Post Certification Authority (HKPCA), has offered smartidentity card holders free use of its digital certificates for a specified period. At year-end, 1 261 000 free e-Certs had been issued to smart identity card holders. A criticalmass of digital certificate holders is being built up, providing incentive for theindustry to develop further applications and services using digital certificates.

Since 2004, the Government has conducted sector-specific programmes incollaboration with the ICT sector and relevant trade associations for the small- andmedium-sized enterprises (SMEs) in six business sectors — travel agencies, privatemedical practices, pharmacies, accounting, logistics, and beauty services. Thesesector-specific programmes have raised the skill of practitioners in using ICT as wellas facilitated the wider adoption of ICT among SMEs in the target sectors. InNovember, the Government received proposals from the industry concerning itsproposal for commissioning new projects under the 2006-07 sector-specificprogrammes. The new projects will address the challenges faced by the specificsectors and are expected to strengthen the competitiveness of SMEs with the help ofICT.

Driving the IT Industry

The local information technology (IT) industry is an important part of HongKong's economy and a major driver of economic growth. The Government hasintroduced a wide range of measures to make ICT a vibrant, competitive andinnovative industry. These measures will help to increase business opportunities,improve service quality, build expertise and provide financial and infrastructuralsupport.

The Government has been adopting an aggressive outsourcing policy for its ITprojects. This, together with programmes aimed at promoting the use of IT inbusiness and the community, has created a good environment for the local industry’sgrowth. The Government will continue assisting the industry to explore businessopportunities on the Mainland and overseas markets. It has also established fundingschemes to help local software companies to achieve international standards and tosupport research and development projects.

Under the second phase of the Closer Economic Partnership Arrangementconcluded in August 2004, it was agreed that Hong Kong service suppliers should beallowed to apply for computer information system integration qualificationcertification in accordance with the provisions of the relevant Mainland rules andregulations with effect from January 1, 2005. A one-year transitional period, duringwhich certain application criteria under the existing regulations were relaxed forHong Kong service suppliers, took effect on January 1, 2005, and was extended foranother year until the end of December 2006. The Ministry of Information Industry of


the Central People’s Government has granted the System Integration QualificationCertificate to four Hong Kong companies. Further liberalisation measures will go intoeffect on January 1, 2007. Because of circumstances in Hong Kong, the Ministry ofInformation Industry has agreed to make permanent some of the transitionalarrangements for computer information system integration qualification certification.

E-governmentE-government is an integral part of the Government’s overall IT strategy. Building

on the solid foundation laid down in the past few years, Hong Kong has launchedthe next stage of e-government under the 2004 Digital 21 Strategy.

Following its aim to use IT to provide customer-centric services that promote anaccessible, accountable and efficient government, and contribute to Hong Kong’sposition as a leading digital city, the Government is pursuing the following keypriorities under the next stage of e-government development:

(a) GovHK

GovHK (www.gov.hk) was soft launched in September 2006 as Hong Kong’sone-stop shop for online government information and services. It gathersinformation on matters and services most frequently sought by the generalpublic from different government bureaux and departments. The mostfrequently asked questions include those about culture, leisure and sports,employment, the environment, and health and medical services. The designand content of the portal will be updated continually.

(b) E-procurement

The Government has formulated a strategy for the public sector to takeadvantage of e-procurement to improve its efficiency and prices to make itmore competitive, and to encourage businesses to make greater use of e-business. The strategy is in line with international best practices, theGovernment’s own procuring and supplying practices, and rules andregulations governing procurement. A pilot e-procurement programme willbe implemented subject to funding approval by the Legislative Council.

(c) Property Information Hub

The Rating and Valuation Department and the Land Registry are planning toset up a Property Information Hub to improve the transparency of propertyinformation. Subject to the outcome of the tender exercise scheduled for2007, the hub will be launched in 2008. Through collaboration with theprivate sector, it will give the public one-stop, user-friendly access to theconsolidated property information held by the Government as well as thevalue-added services to be supplied by private sector partners.

(d) Multiple Applications on the Smart Identity Card

The Immigration Department started issuing smart identity (ID) cards in2003. In addition to using the card for traditional immigration functions as ameans of identification, holders of smart ID cards may also choose to use


them as library cards and opt to have a digital certificate — the personal e-Cert issued by HKPCA — embedded in them to carry out secure onlinetransactions. Smart ID cardholders have been able to use their cards forautomated passenger clearance since the end of 2004 and automatedvehicle clearance since April 2005. In future, the cards may be used formaking bookings for the use of sports and leisure facilities.

In 2006, Hong Kong continued to gain world recognition for its efforts inpromoting e-government. In the e-Readiness rankings released by the EconomistIntelligence Unit (EIU) this year, Hong Kong was ranked second in Asia-Pacific.

IT Manpower

The Government is committed to creating an environment where a well-qualifiedIT workforce can flourish and meet the needs of the community. It has run an annualsponsorship scheme for an IT exchange programme since 2002 to expose Hong Kongstudents to the digital world and to encourage tertiary institutions to organise IT-related exchange programmes with overseas or Mainland institutions. Agovernment-funded pilot digital entertainment programme for interns was launchedby the Cyberport in April for graduates to gain practical experience by working for aperiod in local digital entertainment companies. The Government also providedsponsorship for the Hong Kong Cyberport Management Company Limited to workwith the British Council to organise a programme called ‘Digital Pioneers — YoungCreative Entrepreneur Network’ to encourage contact and exchanges between digitalmedia entrepreneurs in Hong Kong and their opposite numbers in United Kingdom.

The Industry Training Advisory Committee for the IT industry was formed todevelop, maintain and update training procedures and Specification of CompetencyStandards. It will also strengthen the link between the industry and the vocationaleducation sector to create a better equipped and more productive and competitiveworkforce. The Government sponsored the Hong Kong Computer Society to conducta study on the IT Professional Certification System and IT Manpower Roster torecognise the capability and experience of IT practitioners. The Government willcontinue to work with the academic sector and the IT industry on longer termmeasures to ensure that the IT workforce meets local manpower needs and enhanceHong Kong’s competitiveness in the world market. When needed, talented peopleand IT professionals from elsewhere, including the Mainland, may be admitted toHong Kong to offset shortages in specific areas.

Building a Digitally Inclusive Society

The Government encourages citizens to use IT to boost their competitivenessand quality of life. It will continue to organise various activities and initiatives topromote wider adoption and greater public awareness of IT. Since 2005, theGovernment has injected $2 million into the Digital Solidarity Fund (DSF) to getdesigners and other people in the digital industry to help draw up IT strategies forHong Kong. The fund also received $1.3 million from commercial sponsorship. So far,13 projects have been funded by the DSF. Other initiatives included district IT promotion activities, a dedicated website and radio programmes. Over


5 300 computers with Internet connections are available across Hong Kong free ofcharge. All government websites comply with internationally recognised guidelines tofacilitate access and navigation by people with disabilities.

IT Cooperation

As at 2006, Hong Kong had cooperative arrangements such as Memoranda ofUnderstanding (MOU) on information and communications technology with ninecountries: Canada, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands,and the United Kingdom.

The MOU with Canada was amended in December to extend the effective termfor another five years. The MOU with Israel and the Republic of Korea expired at theend of 2006, and arrangements will be made to renew them in early 2007. TheGovernment has organised reciprocal visits, information exchanges and cooperationprogrammes with these countries to promote and support inter-governmentalexchanges, business partnerships and investment cooperation in the areas of IT andtelecommunications.

Cyberport

Located at Telegraph Bay in the southern district of Hong Kong Island, Cyberportaims to set up a strategic centre there for quality IT and IT-related companies andprofessionals. Cyberport is wholly owned by the Government through three privatecompanies established under the Financial Secretary Incorporated.

Cyberport is a comprehensive commercial development with about 95 000square metres of Grade A office space, a shopping arcade and a five-star hotel. Thecommercial portion was completed in June 2004. The final phase of the ancillaryresidential development is due to be completed by 2008.

Companies are admitted as tenants of Cyberport on the advice of a committeeof local and international experts. By the end of 2006, 65 tenants had signed leases,taking up 73 per cent of the project’s available office space. The tenants include local,Mainland and overseas companies specialising in IT applications, information servicesand multimedia content creation.

Cyberport is becoming one of the major venues for IT and digital entertainment-related conferences in Hong Kong and Asia. By year end, over 651 IT-related eventshad been held at Cyberport, with more than 97 200 participants taking part. Theseincluded 387 regional and local conferences, 112 product launching ceremonies,exhibitions and entertainment events. The third Digital Entertainment LeadershipForum, the third Cyberport Venture Capital Forum and the first Cyberport AnimationCamp were among the more prominent events held in 2006.

Cyberport also contributes to technological development in Hong Kong andprovides the necessary infrastructure and technical support for SMEs. The facilities atCyberport include Hong Kong Wireless Development Centre, Digital Media Centre,the iResource Centre, the Digital Entertainment Industry Support Centre and theDigital Entertainment Incubation and Training Centre. They provide vital support forthe continuous development of Hong Kong’s ICT industries, which include the digital


entertainment and wireless application development industries. These are particularlyimportant for SMEs that cannot afford the initial investment in expensive equipmentand lack access to useful resources and business information. In addition, the HongKong Wireless Development Centre established the Hong Kong TD-SCDMA ServiceDevelopment Centre in November 2006 to facilitate entry into the China market ofHong Kong companies involved in wireless applications.

Telecommunications

The Government’s telecommunications policy facilitates the development of thetelecommunications industry and enhances Hong Kong’s position as an internationaltelecommunications hub.

The Office of the Telecommunications Authority (OFTA) is the executive arm of the Telecommunications Authority. It oversees the regulation of thetelecommunications industry in Hong Kong and administers the legislation governingthe establishment and operation of telecommunications equipment and services.

Hong Kong’s telecommunications market is fully liberalised and highlycompetitive. There are sector-specific pro-competition provisions in theTelecommunications Ordinance to ensure fair and effective competition in thetelecommunications market.

Entering the Era of Convergence

Convergence of telecommunications services is taking place at a number oflevels. At the core level, traditional stand-alone voice networks, data networks andbroadcasting networks are progressively migrating to the Next Generation Networks(NGNs), which support all forms of communications on a single platform. At theaccess level, the boundary between fixed and mobile networks is also blurring. Thisconverged mode of transmission enhances the efficiency of network operation,lowers costs and facilitates the quick introduction of innovative services to themarket. Such a development requires OFTA to review and update the regulatoryregime in a timely manner.

The promulgation of the regulatory framework for Internet Protocol (IP)telephony in June 2005 and the creation of the service-based operator (SBO) licencefor the provision of IP telephony services in January 2006 were good examples of theGovernment’s effort to keep pace with market and technology developments. Underthe new regulatory framework for IP telephony, both local fixed network operatorsand SBO licensees are allowed to provide voice telephony services over IP networks.At year-end, there were five SBO licensees.

The current regulatory framework which demarcates fixed and mobile carrierservices with differential regulatory arrangements may also need to be revamped inorder to cater for the convergence trend. A consultation paper proposing a unifiedlicensing framework was first issued in September 2005. In December 2005, aconsultancy study was initiated to analyse the costs and benefits to stakeholders and the community arising from possible changes to the existing regulatoryarrangements, such as fixed-mobile interconnection charging arrangement and fixed-


mobile number portability. Taking into account the findings and recommendations ofthe consultancy study and the feedback from stakeholders, a second consultationpaper was issued in July 2006 setting out the preliminary proposals for the regulatorychanges. The Government will take into consideration the responses to the twoconsultation exercises before making a decision on the way forward.

The Government is considering allocating spectrum for the provision ofbroadband wireless access (BWA) services. Apart from its ability to provide abroadband wireless connection to subscribers, thereby offering an alternative toconventional wireline connection, BWA technologies are expected to eventuallyembrace full mobility capabilities, enabling consumers to gain access to a widerchoice of innovative services under the fixed-mobile convergence environment. Twopublic consultations on the licensing framework for deployment of BWA in the 3.5 GHz band were conducted in December 2004 and August 2005. Responses fromthe telecommunications industry indicated there would be interference between BWAservices and satellite services that operate in the adjacent frequency bands. TheGovernment is therefore exploring other suitable frequency bands for BWAapplications.

Rapid advances in broadband technologies and the increasing convergencebetween telecommunications and broadcasting have created opportunities fortelecommunications operators to offer IP television (IPTV) services. A number of fixedtelecommunications network operators have entered the IPTV market and are nowoffering triple-play products, or telephony, broadband internet access and IPTV totheir customers. With over 700 000 IPTV subscribers, Hong Kong is the mostadvanced IPTV market in the world.

Local Fixed Telecommunications Network Services

Businesses and consumers in Hong Kong enjoy an excellent telecommunicationsinfrastructure. In 2006, the telephone density was 95.5 exchange lines per 100 households, one of the highest in the world.

The local fixed-line market has been fully liberalised since January 2003. Underthe full liberalisation policy, there is no pre-set limit on the number of licences issued,or the timing for submission of applications for licences. By year-end, there were 10 local wireline-based fixed network licensees and one local wireless-based fixednetwork licensee. Under the technology-neutral regime, a licensee may use anytechnology for service provisioning provided the technology conforms to open andnon-proprietary standards and for which there is a reasonable choice of consumerequipment in the market.

After two public consultations, the Government concluded in July 2004 thatmandatory Type II interconnection at telephone exchange level — which helped otherfixed-line operators enter the market by allowing them access to PCCW’s customeraccess network — would be fully withdrawn by June 30, 2008. This revised policyaims to encourage investment in building new infrastructure and upgrading existinginfrastructure. In the long run, consumers will benefit from a greater choice of


telecommunications services delivered through an advanced telecommunicationsinfrastructure capable of supporting different forms of innovative services.

Since the introduction of competition in the local fixed network services marketin 1995, operators have been actively rolling out their self-built customer accessnetworks to provide choices and services to end-customers. By December 2006, 76 per cent of households in Hong Kong were able to enjoy a choice of at least twoself-built fixed networks.

Broadband and Internet Access Services

The number of broadband accounts increased significantly during the year to1 744 420, or 25.3 broadband accounts per 100 inhabitants, representing an annualincrease of 11 per cent. In terms of household penetration, this translated into 71.4 per cent of households. Currently, broadband internet access services withaccess speed of up to 1 000 megabits per second in both the upstream anddownstream directions are available in the market. According to reports issued by theInternational Telecommunication Union (ITU) in 2005, Hong Kong ranks second inAsia in terms of broadband penetration.

Mobile Communications Services

The market for mobile communications services is highly competitive. At year-end, five mobile carrier licensees were operating a total of 14 digital systemsproviding second generation (2G) and third generation (3G) mobile services, serving acustomer base of over 9 million. This represented an annual growth rate of 9.5 percent. The penetration rate of mobile communications services was about 137 percent, one of the highest in the world. At year-end, the four 3G operators hadacquired a customer base of 1 331 651. New services based on the high-speeddownlink packet access (HSDPA) technology offering service to mobile customers asfast as 3.6 megabits per second are also available.

OFTA consulted the public and the industry in October 2006 on the issue of amobile carrier licence for services in the 850 MHz spectrum band to enable theprovision of mobile services based on the CDMA2000 standard, one of the popularmobile standards in the world, including Mainland China. By facilitating the provisionin Hong Kong of a key service which is used widely around the world, Hong Kong’sstrategic position as a world city and the gateway between the Mainland and theworld can be strengthened. Bidding is expected to take place during the fourthquarter of 2007 upon the completion of the consultation process and the enactmentof the necessary legislation.

External Telecommunications Services

The external telecommunications service market had been fully liberalised since1999. At year-end, there were 21 external fixed carrier licensees providing cable-based external telecommunications facilities and six providing non-cable-based external telecommunications facilities. Competition in the externaltelecommunications facilities and services markets have led to a significant drop inInternational Direct Dialing (IDD) call rates.


Satellite Communications

Two Hong Kong companies, APT Satellite Company Limited and Asia SatelliteTelecommunications Company Limited (AsiaSat), hold licences to operate and providesatellite communication services. At year-end, the two satellite companies wereoperating eight satellites.

Combating Unsolicited Electronic Messages

To tackle the problem of Unsolicited Electronic Messages (UEMs), theGovernment announced in February 2005 a package of measures under the so-called‘STEPS’ campaign1. New anti-spam legislation is one of the proposed measures.Taking into account the views submitted to a public consultation on the legislativeproposal, the Government introduced the Unsolicited Electronic Messages Bill into theLegislative Council in July 2006.

International Activities

Hong Kong has been an active player in international telecommunicationsforums. It is part of the China delegation to conferences and meetings convened bythe ITU and participates as an independent member at the meetings of the Asia-Pacific Telecommunity and the Telecommunications and Information Working Groupof the Asia-Pacific Economic Cooperation (APEC). Hong Kong also plays an activepart in the initiative to implement the APEC Mutual Recognition Arrangement forConformity Assessment of Telecommunications Equipment.

The ITU TELECOM WORLD 2006, a mega exhibition-cum-forum event organisedby the ITU, also known as the ‘Olympics’ of the telecommunications industry, washeld in Hong Kong from December 4 to 8, 2006. It was the first time that thisprestigious international event was held outside Geneva, home base of ITU. Mr WuBangguo, chairman of the Standing Committee of the National People’s Congress,and Professor Muhammad Yunus, founder of Grameen Bank, Bangladesh and NobelPeace Prize Laureate, officiated at the opening ceremony.

Under the theme ‘Living the Digital World’, the ITU TELECOM WORLD 2006showcased the latest innovation and development in information andcommunications technology around the world and provided an invaluable platformfor exchanging views on the regulatory policies and for opportunities for businessnetworking. By hosting the event, Hong Kong’s role as the gateway to the Mainlandmarket and Hong Kong’s image as the world’s events capital and telecommunicationshub were further enhanced. The event attracted almost 62 000 visitors from 141 countries, including more than 950 ministers, Chief Executive Officers and otherVIPs. It generated about $900 million of direct economic benefit to Hong Kong.


1 STEPS stands for strengthening existing regulatory measures, technical solutions, education,partnerships and statutory measures.

Broadcasting

The Government’s broadcasting policy objectives are to widen programme choice and diversity through competition, to facilitate the introduction of new,innovative broadcasting services and to enhance Hong Kong’s position as a regionalbroadcasting hub.

Hong Kong’s regulatory regime is technology-neutral. The provision of televisionservices and carriage networks are regulated separately so that a televisionprogramme service provider may hire any transmission network operators to transmitits service instead of investing in transmission infrastructure itself. This arrangementfacilitates market entry and encourages competition.

Under the Broadcasting Ordinance, the four categories of television programmeservices — domestic free, domestic pay, non-domestic (mainly satellite televisionservices targeting the Asia-Pacific region) and other licensable television programmeservices (mainly television services for hotel rooms) — are regulated according to theircharacteristics and pervasiveness rather than their transmission mode.

As a result of the liberalised, light-handed and pro-competition regulatoryapproach, Hong Kong has a vibrant broadcasting industry and its people enjoy amultitude of television and radio channels with diversified programming — fourterrestrial free TV channels, some 240 pay TV channels, over 200 free satellite TVchannels and 13 radio channels.

The Broadcasting Authority

The Broadcasting Authority (BA) is the independent statutory regulator of thebroadcasting sector, comprising nine non-official members from various sectors of thecommunity and three public officers. It is the licensing authority of non-domestic andother licensable television licences, and is responsible for making recommendationsto the Chief Executive in Council on applications for new sound broadcasting,domestic free television and domestic pay television licences, as well as onapplications for renewal of these licences.

The BA’s main function is to safeguard proper standards of television and soundbroadcasting with regard to both programme and advertising content, as well astechnical performance. It publishes codes of practice on programme, advertising andtechnical performance with which licensees are required to comply. The BA is alsoresponsible for upholding a fair and competitive television market in Hong Kongthrough enforcing the competition provisions under the Broadcasting Ordinance.

In light of media and technological convergence, the BA constantly examinesand updates its regulatory approach and codes of practice to ensure that publicexpectations are met and at the same time that the operators have sufficientflexibility to operate effectively and efficiently. It engages the public through itstelevision and radio consultative scheme and focus groups discussion to collectaudience feedback.


Radio Television Hong Kong

Radio Television Hong Kong (RTHK), a government department, is an editoriallyindependent public broadcaster which provides quality radio and televisionprogrammes for Hong Kong citizens.

RTHK currently operates seven radio channels and produces over 970 hours ofradio programmes each week broadcast in Cantonese, English and Putonghua. RTHKplays an important role in the dissemination of important public information. In 2006,its radio division made considerable efforts to arouse public awareness ofenvironmental protection, healthy living and a harmonious community.

RTHK also produced about 560 hours of TV programmes in 2006, excludingschool educational TV programmes, which were broadcast on both free-to-air andpay television platforms. These programmes constantly scored the highest averagerating in the Appreciation Index Survey, a public opinion survey jointly sponsored byRTHK and commercial television operators. In 2006, RTHK’s programmes wereawarded 35 commendations at international and local television festivals. RTHK alsoproduced school educational television programmes and pre-primary schoolprogrammes in support of the Government's education policies.

RTHK has embraced the digital era and started broadcasting online since 1994.The daily average hit rate of RTHK on Internet is 26 million. RTHK continues toharness the multi-media potential on different emerging media platforms in theconverging era, such as licensing web content to mobile operators and providing apodcasting service.

Recent Developments

The boundaries between broadcasting, telecommunications and informationtechnology are blurring. As a result of the development of digital technology,communications companies can provide broadcasting, telephony and internet accessservices over the same telecommunications network. The Government has beenreviewing the regulatory regime to ensure that it remains conducive to newtechnological and business developments. In 2006, the Government consulted thepublic on the proposal to merge the BA and the Telecommunications Authority into aunified regulator responsible for overseeing the whole electronic communicationssector. Such an institutional arrangement, in line with the international trend, willenable the unified regulator to have a broad vision and jurisdiction to cope withchallenges in the converging environment. The public supported the proposedmerger, and the Government plans to introduce the draft legislation in 2007 to pavethe way for the merger’s implementation.

The Government encourages the deployment of digital terrestrial television (DTT)broadcasting technology in Hong Kong to enhance spectrum efficiency and enablethe provision of new services such as high-definition television (HDTV) broadcasting.According to the policy framework for implementing DTT broadcasting promulgatedby the Government, the two incumbent terrestrial broadcasters, Asia TelevisionLimited and Television Broadcasts Limited, are required to launch DTT, includingbroadcasting HDTV programmes, by 2007, and achieve 75 per cent of digital


coverage by 2008. The implementation of DTT is progressing well and theGovernment aims to switch off analogue terrestrial television broadcasting by 2012,subject to further market and technical studies.

Film Industry

Hong Kong is one of the world’s major film production centres. Fifty-one filmswere produced and released locally in 2006. The films were mainly of the action,romance and comedy kind. Their combined box-office receipts amounted to $282million. By the end of 2006, Hong Kong had 48 cinemas, with 177 screens, comparedwith 56 cinemas, with 206 screens, in 2005. Hong Kong’s film industry has beenwell-recognised regionally and internationally over the years. In 2006, a total of 24awards at six major international film festivals and competitions were won by HongKong films or Hong Kong film talents.

Government Support

The Government is committed to providing a favourable environment for thehealthy long-term development of the film industry in Hong Kong. The industry-ledFilm Development Committee (FDC) was set up in November 2005 and is required toadvise the Government on all matters relating to the development of the film industryin Hong Kong, and to promote Hong Kong films on the Mainland and overseas. TheFDC is chaired by a non-official and its members include representatives of differentsectors of the film industry.

In order to provide better support for the industry to scale new heights, theChief Executive announced in his policy address in October 2006 that theGovernment would rationalise the institutional framework of government and publicorganisations in respect of film industry development and support. The Secretary forCommerce, Industry and Technology (SCIT) will be given the task of coordinating therelevant policy, planning and activities, including manpower training, Mainland andoverseas promotion, and filming support. The Government would also set up a non-statutory Hong Kong Film Development Council, comprising mainly members of thefilm industry, to support the SCIT, which will replace the existing FDC. Preparatorywork for these institutional changes is under way.

Film Services Office

The Government set up a Film Services Office under the Television andEntertainment Licensing Authority in April 1998 to provide support for the filmindustry by facilitating film production in Hong Kong and promoting Hong Kong filmslocally and abroad.

To facilitate location filming in Hong Kong, the office has obtained agreementsfrom over 3 330 organisations, including government departments, on the use oftheir premises for location filming, and has published reference materials on locationsfor the industry. The office also provides a centralised service for assisting the filmindustry in matters of a more complicated nature such as location work that requireslane closures or special permits. In 2006, it dealt successfully with 675 such requests.The office acted as the coordinator in the vetting process for film industry parking


applications, and processed 144 such applications during the year, all of which wereapproved. In 2006, the office also provided new coordination services to processapplications to use pedestrian precincts and fish culture zones, and to hire police forintermittent traffic control for location filming.

To promote Hong Kong films in the international market, the office facilitatedthe organisation of Hong Kong Film Festivals in Washington DC and Singapore, andpromoted Hong Kong as an ideal city for location filming at global expositions suchas ‘Locations 2006’ and ‘Busan International Film Commission and IndustryShowcase’ held in the US and South Korea respectively. In 2006, 160 overseas filmcrews, including the production teams of the French film, The Boarding Gate, and theKorean film, My Wife is Gangster 3, carried out location filming in Hong Kong.

The office is also responsible for licensing special effects operators and issuingpermits for the discharge of special effects materials for the film and entertainmentindustry. In 2006, it processed 2 510 such applications.

Financial Support

The Government reactivated the Film Development Fund in 2005 to providefinancial support for projects conducive to the long-term development of the localfilm industry. Since then, the fund has allocated about $15 million for sponsoring 13 projects in six major categories, namely, training courses, seminars, surveys andstudies, data compilation, award schemes, and sponsorship for Hong Kong filmsnominated to participate in overseas film festivals.

A Film Guarantee Fund was also established in April 2003 to assist localcompanies to obtain loans from local lending institutions for film production. It alsoserves to develop a film-financing infrastructure in Hong Kong. So far, the guaranteefund has provided loan guarantees totalling $20.4 million for nine film projects.

Film Classification System

Hong Kong adopts a three-tier film classification system: Category I (suitable forall ages); Category II, which is subdivided into Category IIA (not suitable for children)and Category IIB (not suitable for young people and children); and Category III (forpeople aged 18 or above only). The objective is to allow adults wide access to filmswhile protecting young people under the age of 18 from exposure to potentiallyharmful materials. Category IIA and IIB classifications are advisory — not governed bystatutory age restriction — and are intended to give more information to moviegoers,particularly parents, to help them select films for themselves or their children. Theage restriction is mandatory for Category III films.

In 2006, some 1 186 films were submitted for classification, compared with1 287 in 2005. Of these, 388 were classified Category I, 394 Category IIA, 321 Category IIB, and 83 Category III. Film trailers, instructional films and culturalfilms intended for public exhibition can be exempted from classification. During theyear, 5 976 such films were examined and exempted from classification.


Film classification standards are kept in line with society’s expectations by regularsurveys of community views and consultation with a statutory panel of advisers,comprising about 250 members drawn from different levels of society.

The Board of Review (Film Censorship), a statutory body established under theFilm Censorship Ordinance, is empowered to review the film censors’ decisions onfilm classifications upon request. The board comprises nine non-official membersappointed by the Chief Executive, plus the Secretary for Commerce, Industry andTechnology as an ex officio member.

Postal Services

Established in 1841, Hongkong Post enjoys a proud heritage and an excellentrecord of providing a reliable and affordable postal service to the community. Today,Hongkong Post handles 3.6 million pieces of mail items each day and plays animportant role in facilitating Hong Kong’s trade and commerce.

Since operating as a trading fund in 1995, Hongkong Post has improved itsservice in terms of both quality and product range. In the 2006 ConsumerSatisfaction Index conducted by the City University of Hong Kong, postal servicescame first among 68 major local goods and services surveyed, an indication thatconsumer satisfaction has reached an all time high. Independent public perceptionsurveys also ranked Hongkong Post as one of the city’s top three service organisationseight years in a row.

Mail Volumes

In 2006, Hongkong Post handled approximately 1.3 billion pieces of mail items,serving 2.8 million residential and business addresses. This represents an increase of4 per cent over the 2005 mail volume. Local mail contributed 87 per cent to the totalmail handled.

Speedpost

Speedpost, the international courier service of Hongkong Post, was awarded theGold Level Certification for the fifth year in a row, the highest recognition given inthe Universal Postal Union (UPU) Express Mail Service Cooperative’s Audit andMeasurement Programme.

Promoting Philately

As always, Hongkong Post’s beautifully designed stamps proved to be collector’sitems. The ‘Fireworks’ collection, the pioneering showcase of crystal fabrictechnology, was jointly issued with Austrian Post. Besides, the China Post, HongkongPost and Macao Post also jointly adopted ‘Charming Chinese Lanterns’ as the themeof one of their stamps. Themes of other stamps depicted the Year of the Dog,children’s stories such as Dress Bear Up and Chinese idioms, and city topics such asHong Kong’s 18 Districts and Government Transport. Commemorative themesincluded the International Day of Peace, the 140th Birth Anniversary of Dr Sun Yat-sen and the prepaid postcards for the hosting of the ITU TELECOM WORLD 2006 inHong Kong.


The creative ‘Heart-warming Stamps Customised Service’ enabled customers touse their own photographs on stamps, adding a unique touch to theircorrespondence. Due to its popularity, a new set was issued in November.

On December 31, Hongkong Post issued the third set of Hong Kong DefinitiveStamps since the establishment of the Hong Kong Special Administrative Region,portraying a wide spectrum of birds that inhabit the city.

The seventh Inter-School Stamp Exhibits Competition was co-organised in Aprilwith the Education and Manpower Bureau and supported by the Zhejiang PhilatelyAssociation and Guangdong Philately Association to promote philately among youngcollectors.

The service ‘Stamp OnNet’ was further extended to enable overseas customersto access the mail order service online and manage their accounts for philatelicproducts anytime, anywhere.

Supporting the New Era of E-Commerce To foster the growth of e-commerce in the region, Hongkong Post joined hands

with major online portals to conduct regular seminars for local businesses.

The Hongkong Post Certification Authority helped to facilitate electroniccommerce by embedding over 1.5 million e-certificates in smart ID cards as a secureplatform for e-transactions.

Mail Distribution, Logistics and Retail BusinessThrough its extensive and reliable delivery and retail network, Hongkong Post

achieved the world’s highest success rate of 99.8 per cent for next-day territory-widedelivery of local letters, beating the 98 per cent target set in its performance pledge.

The Hong Kong and Mainland’s One-Stop Gift Fulfilment Service with China Postallows customers in Hong Kong to send a range of over 20 seasonal gift setsincluding bouquets and cakes to over 2 000 cities on the Mainland. Lunar New Yeargift sets and special mooncake gift sets were also introduced in January andSeptember respectively.

The convenient PayThruPost service continued to provide one-stop bill paymentfor all government, public utilities and telecommunication bills.

Supporting Direct Marketing ActivitiesHongkong Post hosted the Direct Mail Symposium 2006 in June, with renowned

speakers and over 200 participants from Asia-Pacific to foster a discussion on raisingstandards of direct mail marketing in Hong Kong.

Boosting Efficacy of International Mail To help merchants in Hong Kong expand business to overseas markets through

the Internet, Hongkong Post extended its existing value-added tax (VAT) prepaymentservice for mail sent to the United Kingdom to cover also those sent to otherEuropean Union member countries. After receiving orders online, merchants can mailthe ordered goods with the VAT prepaid in Hong Kong. This value-added service


saves overseas buyers the hassle of paying the VAT at the point of receipt, making theservices of Hong Kong merchants more user friendly.

Caring for the Community To care for the underprivileged, Hongkong Post has set aside a portion of the its

revenue from the ‘Heart-warming Stamps Customised Service’ for donation tocharitable organisations helping needy children at Christmas and the elderly atChinese New Year.

Promoting Letter WritingThe 35th International Letter Writing Competition organised by Hongkong Post

in March to promote students’ interest in letter-writing attracted 9 000 entries.

Echoing Hongkong Post’s mission of ‘Linking people’, the ‘Love and Care Day’was organised again in September to encourage people to send one local letter freeof postage to convey personal caring messages.

Active Participation in the International Postal ArenaHongkong Post participated in various regional and international meetings in

pursuit of performance excellence, partnership and product development within thepostal community organised by the UPU and the Asian-Pacific Postal Union (APPU).Representing China, Hongkong Post co-chaired the four meetings of the UPUTerminal Dues Project Group, and served as a board member of the UPU Express MailService Cooperative and the Asia Pacific Post Cooperative.

In September, a workshop of APPU Working Group on Terminal Dues wasorganised in Hong Kong. Co-chaired by New Zealand Post and Hongkong Post, ithelped APPU members understand the design of the future Terminal Dues System.

Home PagesGovernment Home Page: www.gov.hkCommunications and Technology Branch of Commerce, Industry and Technology Bureau: www.citb.gov.hk/ctbOffice of the Government Chief Information Officer: www.ogcio.gov.hkInformation Services Department: www.isd.gov.hkGovernment’s e-bulletin: www.news.gov.hkHongkong Post: www.hongkongpost.comDigital 21 Strategy: www.info.gov.hk/digital21E-government in Hong Kong: www.info.gov.hk/digital21/e-govElectronic Service Delivery Scheme: www.esd.gov.hkSmart Identity Card: www.smartid.gov.hkCyberport: www.cyberport.com.hk


Communications, the Media and Information Technology

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