China Mobile Hong Kong, HKT, Hutchison Telephone and SmarTone Mobile Communications are the qualified bidders for an upcoming 5G spectrum auction, Hong Kong’s Office of the Communications Authority (OFCA) reported.
Hong Kong plans to auction spectrum in the 600 MHz, 700 MHz, 850 MHz, 2.5/2.6 GHz, and 4.9 GHz frequency bands. The regulator confirmed that these four qualified bidders are eligible for participating in the bidding stage.
Hong Kong’s Communications Authority (CA) and the Secretary for Commerce and Economic Development (SCED) had announced on March 30, their decisions on the arrangements to assign a total of 325 megahertz of spectrum, including 220 megahertz of new spectrum in the 600 MHz, 700 MHz and 4.9 GHz bands, and 105 megahertz of re-assigned spectrum in the 850 MHz and 2.5/2.6 GHz bands, via a single auction.
The CA aims to hold the spectrum auction on October 25. The spectrum will be assigned to the successful bidders under unified carrier licenses with a validity period of 15 years for provision of public mobile services.
The Hong Kong authorities said that the release of the spectrum is expected to support further development of 5G services in terms of speed, capacity and coverage.
The SCED has set the auction reserve prices for the use of spectrum in the 600 MHz, 700 MHz, 850 MHz, 2.5/2.6 GHz and 4.9 GHz bands at HK$2 million ($257,000) per megahertz, HK$5 million per MHz, HK$4 million per megahertz, HK$5 million per megahertz and HK$3 million per megahertz respectively. A spectrum utilization fee (SUF) will be determined by the auction. Winning bidders will have the option to pay the SUF in a lump sum or annual installments.
In order to avoid a high concentration of spectrum by local carriers, CA said it will implement spectrum caps on the amount of spectrum in individual frequency bands which may be acquired by any assignee, namely 30 megahertz for 600 MHz band, 30 megahertz for the 700 MHz band, 50 megahertz for the 2.5/2.6 GHz band and 40 megahertz for the 4.9 GHz band.
CA also said that Hong Kong mobile operators will be required to reach a minimum population coverage of 90% within five years for the 700 MHz, 850 MHz and 2.5 GHz to 2.6 GHz frequencies allocations. The service obligation for the 4.9 GHz band is 50% population coverage with five years, with a requirement for the deployment of at least 100 indoor base stations in the 600 MHz band over the same time period.
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 last year.
Local operators had acquired 200 megahertz of 3.5 GHz spectrum in mid-October 2019. These 5G licenses will be valid for a 15-year period.
