Hong Kong's Office of the Telecommunications Authority, China's Ministry of Industry and Information Technology and the Guangdong Communications Administration have signed a memorandum of understanding on the Mainland and Hong Kong Closer Economic Partnership Arrangement to allow Hong Kong service suppliers to distribute fixed-line and mobile telephone cards in Guangdong province, but for use in Hong Kong only.

The measure will take effect from October 1, 2009. Under the MoU, HKSS will have to notify separately GCA and OFTA to distribute telephone cards in Guangdong, after they acquire the Hong Kong service suppliers certificate from the Trade and Industry Department of Hong Kong.

Telephone Cards to be distributed will be stored-value telephone cards or SIM cards issued by local fixed and mobile operators. These cards can be used to make local and external calls in Hong Kong only.