Abstract In February 1997 Hong Kong was one of the 69 signatories to the World Trade Organization Agreement on Basic Telecommunications Services (the WTO Agreement), which came into effect on 5 February 1998. The WTO Agreement provides for liberalization of telecom markets and opening up to foreign competition under agreed regulatory principles. In particular, Hong Kong is committed to extending the franchise for domestic and international telecommunications and allowing unlimited international simple resale of fax and data services, virtual private networks and callback services. Hong Kong also committed not to place any foreign ownership restrictions on investments in telecommunications. This note - examines the latest proposals.