The Office of the Communications Authority ("OFCA") announced today (22 October 2016) that the spectrum handover among mobile network operators ("MNOs") arising from the re-assignment of a total of 118.4 MHz of spectrum in the 1.9 - 2.2 GHz band ("the 3G Spectrum") was successfully completed at 00 hours on 22 October 2016.
By way of background, the term of assignment of the 3G Spectrum expired on 21 October 2016. In November 2013, the Communications Authority ("CA"), after two rounds of public consultation, decided to offer, for the new term of assignment with effect from 22 October 2016, the right of first refusal to 69.2 MHz of the 3G Spectrum to the three incumbent assignees (viz. Hong Kong Telecommunications (HKT) Limited, Hutchison Telephone Company Limited ("HTCL") and SmarTone Mobile Communications Limited ("SmarTone")). All three MNOs accepted the CA's offer. The CA further decided to re-assign the remaining 49.2 MHz of the 3G Spectrum through auction. The auction was successfully completed in December 2014, and the spectrum concerned was assigned to HTCL, SmarTone and China Mobile Hong Kong Company Limited.
The re-assignment of the 118.4 MHz of the 3G Spectrum has fetched for the public coffer a total spectrum utilisation fee of HKD 6.9884 billion.
Following the re-assignment arrangements, a total of 29.6 MHz of spectrum has changed hands among spectrum assignees at 00 hours on 22 October 2016. The new term of assignment of the 3G Spectrum lasts for 15 years, to expire on 21 October 2031.
"In order to facilitate a smooth handover of the 29.6 MHz of spectrum among the MNOs and minimise service impact on service users, if any, OFCA has set up a Technical Working Group in March 2015 with the participation of all the MNOs for the purpose of coordinating the technical issues and arrangements in relation to the 3G Spectrum re-assignment. Through the efforts of the Technical Working Group as well as the collaboration of all the relevant operators, OFCA is pleased to note that the spectrum handover arising from the 3G Spectrum re-assignment has been successfully and seamlessly completed at 00 hours on 22 October 2016, and members of the public may continue to enjoy smooth and uninterrupted mobile services", a spokesperson for OFCA said.
In the meantime, the CA is consulting the industry and interested parties on the re-assignment arrangements for the 198.6 MHz of spectrum in the 900 and 1800 MHz bands upon the expiry of the existing assignments between 2020 and 2021. The CA conducted the first round of consultation in early 2016, and, taking into account the views received, the CA expects to launch the second round of consultation in early 2017, with a view to announcing its decisions on the re-assignment arrangements by end 2017.
Office of the Communications Authority
22 October 2016