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The Office of the Telecommunications Authority (OFTA) today (October 3) published an Information Memorandum inviting applications for Hong Kong's Broadband Wireless Access (BWA) licences. The Information Memorandum sets out the minimum spectrum utilisation fees (SUF) for the BWA spectrum auction, the auction rules and various other elements of the licensing framework.
"To maintain Hong Kong as a leading wireless city, the Government has decided to release radio spectrum in the 2.3 GHz and 2.5 GHz bands for the provision of BWA services. The deployment of the technologies will enable the public to enjoy advanced high-speed wireless fixed and mobile services," a spokesman for OFTA said.
"The available radio spectrum of 195MHz is divided into 12 frequency bands, each with a bandwidth varying from 5 MHz to 30 MHz, for bidding in the auction to be held in January 2009. Both new entrants and incumbent licensees may take part in the auction. Each of the bidders may bid for any combination of frequency bands, subject to a spectrum cap of 30 MHz," the spokesman continued.
This will be the first time that the spectrum auction is conducted on an Internet-based software platform. With the use of a simultaneous multiple round ascending auction format, all the 12 frequency bands will be auctioned simultaneously over multiple rounds. The SUF payable for the use of each frequency band will be determined by the highest valid bid for that frequency band in the auction.
"To reflect the value of the radio spectrum as a scarce public resource and having taken into account the international benchmarks, local market situations and technological development, the Government has set the minimum SUF at HK$25 million for every 5 MHz of spectrum. The actual amount of SUF payable by successful bidders will be determined by the results of the auction exercise. Successful bidders will be required to pay the SUF as a single upfront payment and to offer services within five years from the grant of the licence," the spokesman added.
The Information Memorandum can be downloaded from OFTA's website at: www.ofta.gov.hk/en/industry/broadband/main.html. OFTA will conduct an industry briefing for the auction on October 27, 2008, and accept bidding applications on December 15 and 16, 2008.
Background:
BWA is a radio technology that can support a variety of wide area high-speed wireless data services for fixed and mobile customers. A number of economies including the USA, the UK, Australia, France, Germany, Japan, Singapore and South Korea have already deployed or plan to deploy BWA services shortly.
In order to maintain Hong Kong as a regional telecommunications hub and to facilitate the provision of quality telecommunications services to meet the challenges of the information age, the Telecommunications Authority (TA) conducted three rounds of public consultation in December 2004, August 2005 and May 2007 on the deployment of BWA services in Hong Kong. On December 3, 2007, the TA issued a statement announcing his decision to allocate radio spectrum for the provision of BWA services.
To invite applications for the BWA licences, (a) the Secretary for Commerce and Economic Development has specified the minimum SUF (i.e. the reserve prices); and (b) the TA has specified the terms and conditions for the BWA spectrum auction pursuant to section 32I of the Telecommunications Ordinance and the Telecommunications (Determining Spectrum Utilisation Fee by Auction) Regulation by publication in the Gazette (the Gazette Notices). The TA has also issued an Information Memorandum (with the Gazette Notices as appendices) as a general guide to the licensing exercise.
Ends/Friday, October 3, 2008
Issued at HKT 19:04
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