Changes overtaking the telecommunications industry are giving it a central role in the development of the information economy. As an open service economy, Hong Kong’s future growth depends largely on the successful diffusion of these technologies, and this
is true also for Hong Kong’s immediate regional competitors: Japan, Singapore, South Korea and Taiwan. Part One of this chapter examines these issues, and concludes with a review of the information market in Hong Kong. Part Two then examines Hong Kong’s
policy towards telecommunications network and network services competition, and how policy towards telecommunications and the diffusion of information technologies will affect Hong Kong’s role as a regional hub in the post-1997 era.