Finally, the case of Hong Kong, China, which also highlights the difficulties of combining infrastructure sharing regulations and incumbent operator’s incentive to make further investment in network infrastructure. Infrastructure sharing regulation in Hong Kong is somewhat different from that of many other countries, especially in regards of unbundling of access networks. The policy applied no longer regulates the opening-up of the incumbents’ “last-mile” but instead encourages facility-based competition. The Hong Kong Government announced on 6 July 2004 the decision that the regulatory intervention under the “Type II interconnection” (LLU) should be withdrawn. The Government considered that the continuation of mandatory “Type II interconnection” was justified only if the benefits from facilitating effective competition and enhancing consumer choice outweighed any potential detriment arising from dampening of incentive for investment in network infrastructure. With this action, the Territory of Hong Kong is among the first few economies in the world to phase out this mandatory regulatory intervention in its mainstream regulatory policy, opening up the “last mile” of the incumbent fixed operator.