The Office of the Communications Authority ("OFCA") today (21 December 2012) published an Information Memorandum inviting interested parties to participate in the auction of 50 MHz of radio spectrum in the 2.5/2.6 GHz band for the provision of wireless broadband services in Hong Kong. The Information Memorandum sets out the minimum spectrum utilization fee ("SUF"), i.e. the reserve price for the spectrum auction, the auction rules and the salient elements of the licensing framework.
"Mobile data service in Hong Kong has continued to flourish. The monthly mobile data usage in Hong Kong surged to 6,347 terabytes in September 2012, which is about twice and more than four times of the mobile data usage volume recorded during the same period in 2011 and 2010 respectively. Following the release of 90 MHz of radio spectrum in the 2.5/2.6 GHz band in 2009, the Communications Authority ("CA") will make available an additional 50 MHz of radio spectrum in the same frequency band to meet the industry's demand for additional radio spectrum for further development of the fourth generation mobile services," a spokesman for OFCA said.
The successful bidders of the 90 MHz of radio spectrum in the 2.5/2.6 GHz band released in 2009 have deployed the spectrum to provide fourth generation mobile services using the long term evolution (LTE) technology.
"The radio spectrum available in this auction is divided into five frequency bands, each with a bandwidth of 5 MHz x 2. Both new entrants to the mobile market and incumbent operators may participate in the auction and choose to bid for one to all of the five frequency bands. The Government has set the auction reserve price at HK$150 million for each frequency band. The actual amount of SUF payable will be determined by the auction exercise, to be conducted sometime in March 2013," the spokesman added.
The frequency bands will be assigned to the successful bidder(s) under unified carrier licences to be granted by the CA under the Telecommunications Ordinance (Cap. 106) with a validity period of 15 years. The successful bidder(s) will be required to provide within five years from the grant of the licence mobile services coverage to a minimum of 50% of the Hong Kong population or fixed services coverage to at least 200 commercial and/or residential buildings in Hong Kong.
The Information Memorandum can be downloaded from OFCA's website at http://www.ofca.gov.hk/filemanager/ofca/en/content_810/20121221_IM.pdf. OFCA will accept bidding applications on 21 and 22 February 2013.
Office of the Communications Authority
21 December 2012