Telecom sector seeks clarity on infrastructure sharing, cross-border connectivity

MTel Telecom director, Xu Zhancong [Photo: Lynzy Vales]

MTel Telecom Co. Ltd. has called for a more balanced regulatory approach in the drafting of the new telecommunications law, urging authorities to consider the territory’s characteristics as a micro-economy while promoting sustainable industry development.

Speaking to the press on the sidelines of the company’s media gathering yesterday, MTel Telecom director Xu Zhancong said the telecommunications market should be clearly defined in terms of scale and structure as policymakers introduce more competition.

Xu said the goal should be to foster a fair market environment that encourages long-term investment in network technology and infrastructure, rather than policies that either sharply increase operational costs or allow unrestricted market entry.

The Macao Post and Telecommunications Bureau (CTT) ended its telecommunications law consultation last month. The consultation comes after Secretary for Transport and Public Works Raymond Tam recently stated that the government is actively advancing legislative work on the bill, with the aim of submitting it to the Legislative Assembly for deliberation this year.

Meanwhile, on the proposed common utility corridor system, Xu said the current framework still requires further refinement, adding that clearer legal definitions are needed regarding the rights and responsibilities of concessionaires and users.

Using the Zone A area as an example, he said corridor usage fees have remained relatively high, in some cases making network deployment more expensive than earlier self-built infrastructure models.

Xu said the cost structure has, in some cases, made network deployment more expensive than earlier self-built infrastructure models. He warned that if the charging mechanism remains unchanged, recurring access fees could become a long-term financial burden for telecom operators.

“For example, regarding the Macau New Neighbourhood project, the result was that mainland IP addresses were provided to Macau residents rather than Macau network lines, meaning the service ultimately remained mainland-based,” he said.

The official also expressed concern over the concessioned asset application system that began operation on January 1.

“As of yesterday, no unit has successfully secured a line or leased a space through the concessioned asset mechanism,” he said, adding that although the policy was opened at the beginning of the year, implementation remains unclear.

Xu suggested that the situation may reflect a mismatch between administrative requirements, procedural arrangements, and market demand.

He called on authorities to review the system by lowering unnecessary barriers, clarifying application fee standards, and improving contract feasibility to promote more efficient sharing of telecommunications infrastructure.

Xu said strengthening infrastructure openness while maintaining reasonable cost structures would help support the local digital economy and long-term telecommunications development.

Meanwhile, the official said MTel aims to provide AI hosting, computing power, algorithm services, and storage capacity in Macau.

“This is one of our key business priorities this year,” he concluded.