To enable the provision of Broadband Wireless Access ("BWA") services, the Telecommunications Authority ("TA") today ( 3 December 2007 ) announced the decision to release spectrum in the 2.3 – 2.4 GHz (the "2.3 GHz band") and the 2.5 – 2.69 GHz (the "2.5 GHz band") by auction in the fourth quarter of 2008.

Broadband Wireless Access ("BWA") is a radio access technology that can support a variety of wide area high-speed wireless data services. In addition to deployment as wireless backhaul links for fixed or mobile networks, the technology may also be used in customer access networks, such as direct access networks for mobile customers or broadband wireless local loops for fixed customers replacing the conventional copper wire.

"The release of the 2.3 GHz band and the 2.5 GHz band will allow the introduction of BWA services, facilitating the development of Hong Kong into an advanced wireless city. The public will have wider choices of innovative services, including mobile broadband network services, so that they may have access to the internet and multimedia services at affordable price any time, any where and while on the move," a spokesperson of the Office of the Telecommunications Authority ("OFTA") said.

According to the Spectrum Policy Framework announced by the Government in April 2007, the policy inclination is that a market-based approach in spectrum management will be used wherever the TA considers that there are likely to be competing demands from providers of non-government services.

"Depending on the result of frequency coordination with the mainland authorities, an amount of 190 to 240 MHz of frequency spectrum can be made available for BWA services. Consistent with the Spectrum Policy Framework, we will rely on market powers to ensure the efficient use of frequency spectrum as a public resource. The TA will therefore offer all the available frequency spectrum for BWA services in the forthcoming auction. The frequency spectrum made available should be sufficient to accommodate at least six licences. The actual number of licences that will be issued will be determined by the outcome of the auction and the commercial decisions of interested parties," continued the spokesperson. The BWA services will be licensed using the new Unified Carrier Licence to be created by the Secretary for Commerce and Economic Development.

"Details of the pre-qualification requirements, the auction rules and the reserve price will be released nearer the time of the auction. The Government aims to create a competitive environment for the auction and any interested party including incumbent fixed and mobile carriers will be welcome to bid for the spectrum," added the spokesperson.

The relevant subsidiary legislation for imposing spectrum utilisation fee on the use of the 2.3 GHz band and the 2.5 GHz band and the prescription of the method of determining the spectrum utilisation fee by auction will be tabled in the Legislative Council in due course.

This will be the third time when spectrum was subject to bidding. The first occasion was in 2001 on the deployment of spectrum in the 1.9 - 2.2 GHz band for the provision of 3G services while the second was earlier this year on the 850 MHz band for the provision of the CDMA2000 services.

Background

The TA has conducted three rounds of public consultation to solicit public views and comments on the provision of BWA services. After considering the expressions of interest and submissions received in response to the third consultation, the TA announced the decision today to proceed with the assignment of the spectrum for the provision of BWA services.

BWA services are already deployed or will be deployed in the 2.3 GHz band and/or 2.5 GHz band in many economies, including Australia, New Zealand, France, Germany, the UK, Japan, Singapore, South Korea, Taiwan and the US.

 

Office of the Telecommunications Authority
3 December 2007