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3G licensing update

Hong Kong

Hong Kong’s Office of the Telecommunications Authority (OFTA) will use a “hybrid” method-a prequalification followed by an auction-to allocate four third-generation (3G) mobile services licenses early next year. New market entrants must compete with Hong Kong’s six incumbent operators. Hutchison Telecom, Pacific Century CyberWorks and SmarTone Communications are the leading contenders.

New Zealand

A new company, Clear Communications, entered New Zealand’s auction-which has been under way since July-of third-generation (3G) and second-generation (2G) wireless spectrum. At press time, bid totals were around US$43 million. Clear said with New Zealand’s mobile market currently at 40-percent penetration and broadband technology developing quickly, there is ample room for growth and for innovation for mobile services. Wireless incumbents Vodafone New Zealand and Telecom New Zealand are also vying for 3G spectrum, along with another newcomer, Telstra Saturn.

Singapore

Singapore will award four third-generation (3G) licenses in an auction starting next February. There was speculation the Infocommunications Development Authority of Singapore would use the “beauty contest” model to award the licenses. The minimum bid for each license is US$88 million. The auction rules will be published in December 2000, and bids will be invited. Bids must be submitted by February 2001, when the auction proper will start and continue for two weeks to two months. Rollout of 3G services is expected to commence by 2003.

South Korea

Four South Korean telecom companies have applied for one of three third-generation (3G) licenses. The licenses, to be awarded through a modified beauty contest by the end of 2000, are expected to bring in at least US$2.7 billion for the government. SK Telecom, Korea Telecom, LG Telecom and Hanaro Telecom all applied for a license, according to a Reuters report. All the companies except Hanaro hold stakes in current second-generation wireless networks. The Ministry of Information and Communication has said only two carriers will be allowed to adopt widebandCDMA (W-CDMA), the report said, although all the country’s carriers have noted their interest in migrating to W-CDMA. However, SK Telecom has launched commercial 1XRTT service, an evolutionary technology to cdma2000.

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