In support of the Government's policy initiative, OFCA has implemented a subsidy scheme to provide operators with financial incentives in the form of subsidies to encourage the extension of fibre-based networks to villages in remote areas.

The subsidy scheme covers 235 villages across nine districts in the New Territories and outlying islands (namely North, Sai Kung, Tai Po, Sha Tin, Yuen Long, Tuen Mun, Tsuen Wan, Kwai Tsing and Islands). These 235 villages are grouped under six projects (i.e. Project 1 to Project 6). For the list of villages covered under the subsidy scheme, please click here.

The subsidy scheme will subsidise the selected fixed network operators (FNOs) to roll out lead-in connections to the vicinity of the entrances of the villages concerned. The subsidy scheme will also subsidise the roll-out of three submarine cables connecting Lamma Island from Hong Kong Island, Cheung Chau from Lantau Island and Peng Chau from Lantau Island respectively.

To introduce competition, the selected FNOs are required to open up at least half of the capacity of the subsidised network facilities for use by other FNOs for free.

In June 2019, OFCA issued tender documents to invite eligible FNOs to participate in the six projects under the subsidy scheme. OFCA completed the assessment of the tenders received and awarded Project 1, Project 3 and Project 4 to HGC Global Communications Limited; and Project 2 and Project 5 to Hong Kong Telecommunications (HKT) Limited. The selected FNOs will commence work and apply to the Government departments concerned for relevant permits and approvals for excavation works and laying of submarine cable for the rollout of fibre-based networks.

As no tender was received for Project 6, OFCA conducted a re-tender exercise for this project . The tender closing date was 30 March 2020.