Sunday HK Pay Cash for License

date: October 23, 2001

Sunday Communications paid cash instead of providing a bank-guaranteed bond for its WCDMA 3G mobile spectrum licence, Hong Kong's telecom regulator said on Tuesday.

One analyst said paying cash instead of providing a bond may be a sign that Hong Kong's smallest mobile carrier could face financial difficulties in a 3G environment.

Instead of paying a US$32 million performance bond by Monday's deadline under its 3G licence obligations, Sunday submitted a cash payment in the same amount to cover its spectrum utilization fee, Hong Kong's telecom regulator said.

"Sunday said they encountered difficulties in providing the bond in time and we have accepted the cash payment in lieu of the bond," said a spokeswoman with Hong Kong's OFTA.

Sunday managing director Craig Ehrlich said the main reason for the firm to pay cash was that it did not have enough time to arrange a bank-guaranteed bond as the payment deadline was moved forward to Monday from the end of the year.

OFTA said the payment's deadline had been moved forward after consultation with all 3G licence winners.

"They all said they had no problem with the change of deadline when we consulted them about the change of deadline," the OFTA spokeswoman said.

Sunday was one of four mobile carriers awarded a 3G spectrum licence to offer Internet-enabled, high speed mobile service in Hong Kong.

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