Network Neutrality – Hong Kong’s Perspectives

The next generation broadband infrastructure will provide access to two categories of content, applications and services – those delivered over the Internet and those provided on the managed networks of the infrastructure. This paper addresses the question of whether operators of broadband infrastructures have the incentives to engage in discriminatory practices in the provision of access to content, applications and services on the Internet and the managed networks and what should be the appropriate regulatory response to address such practices. On the basis of theoretical considerations and empirical evidence from the market, this paper examines four questions. First, in the highly competitive market in Hong Kong, would there still be incentives for access providers to engage in discriminatory practices against content,applications and services on the Internet and on the managed networks? Second, would such discriminatory practices lead to “market failures”? Third, are the existing laws able to cope with the discriminatory practices if they should lead to “market failures” that justify regulatory intervention? Fourth, should new regulation be introduced to tackle the discriminatory practices?