Re: Hong Kong and Internet actions

[David Farber <farber () central cis upenn edu>]

Date: Wed, 8 Mar 1995 21:27:45 +0900
To: farber () central cis upenn edu (David Farber)
From: ajp () glocom ac jp (Adam Peake)


>         STATEMENT CONCERNING POLICE ACTION ON INTERNET PROVIDERS
>         ========================================================
>
> - Why was the CCB involved in a simple HK$700 licensing issue on the same
>  level as illegal hawking?


An important detail of the PNETS license is missing from this statement. I
believe the license involves more than a one off HK$700 fee (US$1 = approx.
HK$7.75), it requires Internet service providers to pay Hong Kong Telecom
HK$5.40 for each hour that each user spends online.
Hong Kong SuperNet, with a PNETS license, offers its basic service from
about HK$10/hour, HK$5.40 of which goes to the telco.  Some unlicensed
operators were apparently offering service for less than HK$5.40/hour.  I
think Hong Kong's telecoms regulations are quite clear about ISPs requiring
a PNETS license, at least when I was in Hong Kong last December, people
from the telco and Internet community told me that ISPs required a PNETS
license to operate.


There's more to this than just the license issue, the raids sound like a
massive over reaction and there seems to be confusion between OFTA and the
police over what they were raiding for (the cracker rumours), but the basis
of the case appears straight forward enough - operate without a license,
undercut competitors, get shut down.


Adam