Hong Kong to auction spectrum for four 3G licences by mid-year

date: 13th February 2001

Hong Kong has confirmed it will issue four third-generation (3G) mobile communications licences by mid-year, with a pre-qualification exercise followed by a spectrum auction.

"Given the spectrum constraint, we decide to issue four 3G licences. This will provide sufficient spectrum for each operator to provide innovative, multimedia 3G services and ensure competition in the market," said a spokesperson for the Information Technology and Broadcasting Bureau in a statement.

"The pre-qualification process is intended to be relatively light but will involve setting certain minimum criteria on investment, network rollout, service quality, financial capability, etc," said the spokesperson.

"This will enable us to ensure the quality of the 3G networks and services to the benefit of consumers."

The bureau said the spectrum auction method of awarding licences was being adopted because it was fair to all market participants.

Operators would also have to make royalty payments to the government based on a percentage of their revenue, althugh no further details were available.

The bureau said 3G licencees would be required to open at least 30 percent of their network capacity to other telecommunications operators.

"The open network requirement will create a competitive market over the 3G platform that also preserves operator investment incentives to roll out their network," the statement said.

The bureau controls the licence-issuing Office of the Telecommunications Authority (OFTA). The bureau said OFTA does not expect to offer additional spectrum for 3G services before 2005.

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