Today’s SCMP business section has a front page story entitled “OFTA pushes ahead with wireless broadband licence plan”.
From what I have found WIFI is a fantastic technology and far more flexible than 3G.
Based on the article, it appears that 13 mobile, fixed line and satellite firms are complaining to the government to slow down the emergence of this great technology (broadband WIFI). According to linked documents their complaint is that they “cannot accept a policy formulation process that is ad hoc, excludes consideration of the key issues or is done in the wrong order.”
If we go back to the days of Hong Kong Telecom, the government granted this company a monopoly so that no other company could compete with HKT and ordinary citizens paid through the nose to support this government enforced monopoly. OFTA only came about after efforts to promote some sort of controlled competition, where the number of entrants are limited according to what government consultants think are reasonable.
This of course goes against the idea of free competition as the market not goverment consultants should decide how many companies can offer this service. The whole licensing system for 3G, mobile and fixed line do need to be overhauled. But that should not prevent the free market from developing and expanding into new technologies such as wireless.
The proper solution (the capitalist solution) is that frequencies for WIFI, 3G and other such technologies should be sold off to the highest bidder – WITHOUT DELAY. And no preference should be given to existing spectrum holders. My feeling at this stage is that 3G bidders made a big mistake as WIFI seems to be a much better technology – maybe that could be the reason for the current objections.
At the same time, the role of OFTA should be limited to dispute resolution not regulation – which would require a lot less staff.