Hong Kong aims to award 20 megahertz of spectrum in the 850 MHz to 900 MHz band and 90 megahertz in the 2.3 GHz band
Hong Kong’s Communications Authority (CA) announced plans to reassign a total of 110 megahertz of 4G and 5G spectrum across two bands by holding an auction in 2024.
In a release, the entity said that current assignments of 20 megahertz of spectrum in the 850 MHz to 900 MHz band and 90 megahertz in the 2.3 GHz band are set to expire in May 2026 and March 2027, respectively.
CA said that the Secretary for Commerce and Economic Development (SCED) also announced its decision on the method for determining the related spectrum utilization fee (SUF).
The CA and the SCED have considered the views and comments received in the public consultation conducted between November 2022 and January 2023 in order to reach a final decision on the reassignment arrangements and the related SUF.
“The superb radio propagation characteristics of the spectrum in the 850/900 MHz bands are conducive to operators’ provision of wide network coverage in a cost-effective manner, while the spectrum in the 2.3 GHz band has good radio propagation characteristics for providing good network coverage and wider bandwidth capable of supporting higher transmission capacity,” a spokesman for the CA said.
CA also noted that the spectrum assignees are expected to make use of the frequencies to provide 4G, 5G or other emerging advanced technologies.
The spectrum licenses will be awarded for a 15-year term starting from June 1, 2026 for spectrum in the 850/900 MHz bands and March 30, 2027 for spectrum in the 2.3 GHz band.
The SCED also decided that the SUF will be determined by auction while the auction reserve price will be specified nearer the time of the auction after taking into account all relevant factors.
“To provide greater financial flexibility to spectrum assignees, the assignees will be given a choice to pay the SUF either by lump sum payment upfront or by annual installments in the reassignment period of 15 years,” a spokesman for the Commerce and Economic Development Bureau (CEDB) said.
The 20 megahertz in the 850 MHz to 900 MHz band will be divided into two paired frequency blocks of 2×5 MHz each. A spectrum cap of 10 megahertz will be imposed.
Meanwhile, the 90 megahertz of 2.3 GHz spectrum will be split into nine 10 megahertz blocks, with a 50 megahertz spectrum cap.
CA also noted spectrum will be auctioned together in a simultaneous multiple round ascending format. CA said that incumbent operators and new entrants can participate in the auction.
Assignees will be required to provide a minimum coverage of 90% of Hong Kong’s population within five years.
In October of 2021, the Hong Kong government 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 (currently $242 million).
Through this spectrum auction, OFCA made available blocks of spectrum in the 600 MHz, 700 MHz, 850 MHz, 2.5/2.6 GHz and 4.9 GHz bands.
