Hong Kong’s Office of the Telecommunications Authority (OFTA) has announced that it has withdrawn its regulatory guidance on fixed-mobile interconnection charges (FMIC) as of today (27 April 2009), when a two-year phasing out of the mobile party’s network pays (MPNP) model ends. Interconnection charges for calls to/from fixed/mobile networks will henceforth be settled by commercial agreements without ex ante regulatory intervention. In a statement, the regulator says that the transitional period was intended to give mobile and fixed operators time to negotiate new FMIC arrangements, and that the deregulation of FMIC followed the government’s market-driven policy by removing regulatory asymmetry which was not conducive to the development of fixed-mobile convergence. Earlier this week, Hong Kong-based cellco SmarTone-Vodafone claimed it will implement a calling party pays (CPP) interconnection scheme by the end of the month, although it said it was still in talks with fixed line operators. Mobile providers stand to gain from CPP as the volume of fixed-to-mobile calls in Hong Kong outweighs mobile-to-fixed traffic.