OFTA set market straight

July 15, 2004

Hong Kong's telecom regulator (OFTA) has said the proposal to issue a fifth 3G mobile license does not necessary mean the license would go to a new entrant. The proposal faced widespread opposition with operator, banks and analysts saying that a new entrant would undermine the mobile phone market in Hong Kong.

Director General of Telecommunications Au Man-ho said the industry had misinterpreted the proposal to re-auction the 800 MHz frequency band for a fifth 3G licence. "It does not necessarily have to be a new player, we can issue it to existing players in the market," Au said.

The OFTA proposed to revoke licenses for the 800 MHz spectrum, currently held by Hutchison Telecom and CSL, and auction the spectrum to an operator who will offer services based on the CDMA2000 technology.

Au also indicated the fifth license holder may not necessary have to deploy CDMA2000 and a decision on the technology won't be made until autumn. He stressed that the authority took a technology neutral approach

"Whether a different standard should be issued will be decided by the market," Au said.