Hong Kong OFTA to offer 3G CDMA2000 license

March 22, 2004

Hong Kong's telecom regulator OFTA plans to issue a new 3G mobile phone when the licenses for CDMA and TDMA expire next year. The spectrum occupied by the two licenses, currently held by Hutchison and CSL, will make way for the 3G CDMA2000 technology.

Hutchison and CSL have been concentrating their efforts on their GSM networks and subscribers to CDMA and TDMA have been decreasing over the past couple of years. Hutchison's CDMA subscribers dropped to 40,000 from 280,000 in 2000, and CSL's TDMA subscribers fell to 30,000 from 140,000 in 2000.

"We are of the view that the spectrum under the two licenses should be vacated on expiry for better utilization, which will in turn benefit the consumers," Marion Lai, deputy secretary for commerce, industry and technology.

"This will allow consumers to enjoy services and mobile phones or devices that have become successful and popular in places like Japan and South Korea."

Both CSL and Hutchison are holders of 3G licenses. CSL is launching 3G later this year while Hutchison launched their 3G service in late January. So far, 36,500 customers have subscribed to Hutchison's 3G service.

Meanwhile, Peoples Telephone will deploy an EDGE network in the third quarter that will cost about HK$50.0 million. The company is one of two mobile operators that failed to gain a 3G license. EDGE offers data transfer speeds close to 3G and provides services similar to 3G bar video calling. (£1 = HK$13.4350)