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Hong Kong is a major telecommunications hub:
it has more than 3.8 million fixed telephone lines
and some 8.2 million mobile phone subscribers
(118 per cent of the population).
Broadband coverage reaches virtually all
commercial buildings and households, with
71 per cent of households installed with
personal computers.

Excellent communications have been an essential element in Hong Kong's development as an international business and financial centre. The HKSAR has one of the most sophisticated telecommunications markets in the world, and its people are kept well informed by a vigorous media.

The HKSAR has a fully liberalised telecommunications market. In July 2004, legislation to regulate merger and acquisition activities in the telecommunications market came into effect. The Government also decided to withdraw the mandatory Type II interconnection arrangement that enable fixed network operators to reach customers' premises through another operator's customer access networks at telephone exchange level. This decision encourages fixed network operators to make further investment in advanced telecommunications infrastructure and to launch new services and applications for consumers, thereby helping Hong Kong to develop into a leading digital city.

Hong Kong has a vibrant broadcasting sector offering a wide range of services to local viewers and listeners. Hong Kong viewers and listeners have access to over 200 local and overseas television channels in various languages through free-to-air terrestrial and satellite reception or pay television services provided by three companies, and 13 radio channels provided by two commercial broadcasters and Radio Television Hong Kong (RTHK), the public service broadcaster. At the same time, it is a regional broadcasting hub with 13 licensees uplinking over 100 satellite television channels for the regional market. Terrestrial television broadcasters are migrating to digital broadcasting and the Government is updating the regulatory regime in the light of technological and market convergence.