The local regulator said that 110 megahertz of repurposed 5G mobile spectrum was sold over a seven-day auction
The Hong Kong government recently secured HKD2.24 billion ($288 million) from its latest 5G spectrum auction, Hong Kong’s Office of the Communications Authority (OFCA) said in a release.
China Mobile Hong Kong acquired the maximum allocation of 50 megahertz in the 2.3GHz spectrum band for HKD1.07 billion, said OFCA.
Hutchison Telecom followed closely behind, securing 10 megahertz in the 850MHz band —the maximum permitted — along with an additional 20 megahertz in the 2.3GHz band, for a total of HKD617 million.
Meanwhile, HKT acquired 20 megahertz in the 2.3GHz band, paying HKD400 million and SmarTone obtained 10 megahertz in the 850MHz band for HKD151.5 million.
In total, 110 megahertz of repurposed mobile spectrum was sold over a seven-day auction, divided into 11 separate blocks. OFCA noted that it will issue licenses for a period of 15 years.
“The spectrum auction implements the 2023 Policy Address initiative to promote telecommunications development. Apart from using the spectrum for continued provision of 4G mobile communications services, successful bidders can also re-farm relevant spectrum for 5G and future generations of mobile communications services-including 6G, thereby further enhancing overall service quality and driving innovation, benefitting all citizens in Hong Kong,” an OFCA spokesperson said.
Operators have the flexibility to either pay the full amount upfront or opt for an annual spectrum utilization fee (SUF), the regulator added. “Each provisional successful bidder is required to submit a Letter of Credit by January 13, 2025, in full amount to guarantee payment of the SUF as specified in the table above. The provisional successful bidders are also required to submit performance bonds, where applicable, to ensure compliance with the network and service rollout requirement before the actual frequency assignments take effect,” the spokesperson added.
OFCA is also preparing to hold another auction next week, offering a 400 megahertz block of spectrum in the 6GHz to 7GHz range.
In June, OFCA had announced the results of the second round assignment of the frequencies in the 26 GHz and 28 GHz bands.
The regulator had stated that a total of 1,200 megahertz of the spectrum was expected to be assigned in the third quarter of this year to China Mobile Hong Kong, HKT, Hutchison Telephone Company and SmarTone.
China Mobile Hong Kong, Hutchinson and HKT had launched commercial 5G services in Hong Kong in April 2020, while SmarTone, announced the launch of commercial 5G services in the territory using Ericsson’s Dynamic Spectrum Technology (DSS) in May 2020.
Local operators had acquired 200 megahertz of 3.5 GHz spectrum in mid-October 2019. Those 5G licenses are valid for a 15-year period.
