The subsidy scheme for encouraging early deployment of 5G was initially launched in May 2020
Hong Kong’s Office of the Communications Authority (OFCA) announced that subsidies to encourage 5G deployments will end on December 31.
The subsidy framework for encouraging early deployment of 5G was initially launched in May 2020 and aimed to encourage various sectors, with financial incentives, to deploy 5G technology early to foster innovation and smart city applications in Hong Kong.
The government of Hong Kong earmarked funding of HKD100 million ($12.9 million) for the subsidies, to cover up to half of the costs of projects involving the deployment of 5G technology, subject to a cap of HKD500,000 for each project. To date, OFCA said that over 160 applications have been approved under the subsidy scheme, covering various industries and sectors.
“The subsidy scheme has successfully promoted the deployment of 5G technology and the adoption of innovative 5G solutions covering various industries and sectors including medical, education, construction, engineering, transport, property and building facilities management and logistics. Approved projects include remote surgery consultation and training system for university teaching hospital, STEM (science, technology, engineering and mathematics) education system, safety monitoring system for construction site, smart passenger flow analysis system, smart security system and remote control gantry crane. Amid the epidemic, the subsidy scheme has successfully promoted 5G deployments in different sectors, facilitating smart city development and providing convenience for the public in their daily life while opening up more business opportunities and room for development for start-up businesses,” a spokesman for OFCA said.
“Individuals who wish to apply for the subsidy scheme should seize the final opportunity to submit applications to OFCA before the application deadline on December 31. Furthermore, the Government will continue its efforts in promoting the development of 5G which include timely supply of suitable radio spectrum to the market, implementation of regulatory and administrative measures to facilitate the development of 5G, and promotion of the wide application and ubiquitous deployment of 5G through publicity and education,” the spokesman added.
Last month, Hong Kong’s Secretary for Commerce and Economic Development (SCED) and the Communications Authority (CA) launched a public consultation on the proposed reassignment of 20 megahertz of spectrum in the 850/900 MHz bands and 90 megahertz of spectrum in the 2.3 GHz band.
The government of Hong Kong wants to reassign these frequencies, which are currently licensed for 4G services but are set to expire within the next few years.
The 20 megahertz of spectrum in the 850/900 MHz band is currently assigned to two mobile network operators in support of 4G services, with the existing assignments due to expire in May 2026.
The 90 megahertz of spectrum in the 2.3 GHz band is currently assigned to three operators and mainly used to provide 4G services, with the existing assignments due to expire in March 2027.
In October of 2021, the Hong Kong government had announced the award of 255 megahertz of spectrum in 19 frequency blocks after a spectrum auction that required a total of 32 rounds of bidding in three days. In this spectrum, the local government secured spectrum utilization fees of a total of HKD 1.87 billion.
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.
