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Results of spectrum auction for provision of CDMA2000 mobile services
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    The Office of the Telecommunications Authority (OFTA) today (October 15) announced that at the October 12 deadline (by 5pm) for the bidding of radio spectrum for the provision of CDMA 2000 mobile services, one application was received - from PCCW-HKT Telephone Limited (PCCW-HKT).

     A spokesman for OFTA said: "PCCW-HKT has met all the pre-qualification requirements. Since PCCW-HKT is the only applicant and has met the pre-qualification requirements, it is the Provisional Successful Bidder under the terms and conditions of the auction. PCCW-HKT is required to pay to the Government the Spectrum Utilisation Fee of $76 million and provide to the Telecommunications Authority a Performance Bond of $150 million by November 27 before it will be declared as the Successful Bidder."    

     "The CDMA2000 licensee will be permitted to provide CDMA 2000 services after November 20, 2008. The authority will issue the appropriate licence or permit so that the licensee may construct the new network during the intervening period," the spokesman said.

     "With the grant of the new CDMA2000 licence, visitors to and the residents in Hong Kong will be able to enjoy advanced CDMA mobile services, including CDMA roaming services. This will strengthen Hong Kong's strategic position as a world city and the gateway between Mainland China and the world," the spokesman said.

Background

     In April, the Government announced the policy framework for the management of radio spectrum in Hong Kong. Among the spectrum policy objectives, one objective was to strengthen Hong Kong's strategic position as a world city and the gateway between Mainland China and the world. This is considered particularly important in the light of increasing economic integration between Hong Kong and Mainland China. The framework also sets out clearly the guiding principle in spectrum management that a market-based approach should be adopted when there are likely to be competing demands from providers of non-government services.

     Having given due regard to the framework and in order to ensure the continuation of CDMA services in Hong Kong, the authority announced in April to make available the spectrum in the 850 MHz band for the provision of CDMA2000 services through an open auction. A 15-year licence for such services would be issued to the successful bidder.

     On August 31, OFTA published an Information Memorandum (IM) and invited applications to bid for the radio spectrum for the provision of CDMA2000 services. The dates for application submission were on October 11 and 12.

Ends/Monday, October 15, 2007
Issued at HKT 19:02

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