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ARTICLE · 04 APRIL 2019

Class Licence For Telecommunications Services Set For Review

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The Class Licence for Offer of Telecommunications Services ("CLOTS") regime was introduced in 2007.

Hong KongMedia, Telecoms, IT, Entertainment

Background

The Class Licence for Offer of Telecommunications Services ("CLOTS") regime was introduced in 2007. Its main purpose was to regulate any person who offers telecommunications services to the public without operation or establishment or maintenance of means of telecommunications equipment, such as for example, the provision of public WiFi services, in-building telecommunications systems, etc. Over the last decade, major changes have occurred in the Hong Kong telecommunications market, including increased use of online platforms or smartphone apps and increased number of consumer complaints regarding CLOTS licensees. On 4 January 2019, the Communications Authority (the "CA") issued a consultation paper, seeking public and industry comments on proposals to amend conditions of the CLOTS licensing regime. The proposal aims to ensure that the administration of the CLOTS remains efficient, proportionate and up-to-date to facilitate business innovation, while

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