Six HK operators ready for 3G auction

date: July 19, 2001 - source: Reuters

Some Hong Kong mobile phone carriers have grumbled about the minimum bid terms, but all six are expected to participate in the royalty-based auction of 3G mobile telecoms spectrum in September.

Hutchison Telephone and CSL stopped short of committing to the auction, complaining that the minimum bidding terms outlined by Hong Kong regulators on Wednesday were costly, but both are expected to bid.

HK's four smaller carriers, SmarTone Telecommunications, Sunday Communications, the New World PCS Ltd unit of New World Development, and Peoples Telephone Co all said they will submit bids.

Credit Suisse First Boston said that on a net present value basis the minimum bid cost is roughly US$67 million. Bids from outside Hong Kong are not expected, as the territory's mobile market, with 80 percent penetration, is so competitive that every carrier except CSL loses money.

Stephen Ngan, deputy managing director of Hutchison Telecom, noted that the minimum bid cost over 15 years would total HK$1.3 billion (US$166 million).

"The $1.3 billion is high as an entrance fee," Ngan told reporters on Thursday. "We have to bear in mind how this will affect our subscribers and our operating costs."

CSL chief executive officer Hubert Ng said on Wednesday the Hong Kong minimum terms were expensive relative to the recent US$55 million that Singapore charged three carriers for 3G spectrum.

A CSL spokeswoman on Thursday said the company was still studying the rules and had not made any decisions, but the firm is widely expected to seek a licence. .

Sunday, SmarTone and Peoples, which is controlled by China Resources (Holdings), all said they will bid but declined to elaborate.

Hong Kong's i-Cable Communications Ltd said on Thursday it may launch a joint bid with sister company New T&T, a fixed line telephone company, for a 3G mobile phone network licence in the territory.

A New T&T spokesman said a joint bid would make sense as i-Cable can provide the content for the high-speed wireless multimedia technology when it is launched between 2002-2003.

Top Sellers at our online store

1.	NEC e606 on 3
2.	Orange Nokia 7250i
3.	O2 Samsung A800
4.	NEC e808 on 3
5.	Motorola A920 on 3

last updated: January 12, 2004

Visit our online store, click here

3 phones

3G Motorola A920
Available Now! Superb full colour touch- sensitive screen with a built-in digital camera for Video Calling.
Buy now from Free

M-Profits: Making Money from 3G Services
ISBN: 0470847751

This book discusses 3G services from the view of what is needed for the service to provide value to the user, what is the value proposition for the user, how will money be made out of delivering the service, and discussions on how revenue sharing propositions might work to benefit content providers and network operators. 3G operators should take note of this highly recommended book.

buy it UK | USA

3G Books to Read!

top