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To cope with the market demand for public mobile service, the Office of the Telecommunications Authority (OFTA) today (April 24) invited applications from existing mobile network operators to participate in the auction of radio spectrum in the 1800 MHz band, which is scheduled to be held in June.
"There has been significant growth of mobile telephony services in Hong Kong over the past years. As of January 2009, the number of mobile subscribers has reached 11.43 million. To cope with the need for additional radio spectrum for capacity expansion of public mobile service, the Government has decided to release 4.8 MHz x 2 of radio spectrum in the 1800 MHz band by way of auction," a spokesman for OFTA said.
"The available radio spectrum is not sufficient for a new entrant to build a network that can compete effectively with the existing mobile network operators in terms of system capacity, coverage or quality of service. Therefore, the Telecommunications Authority has decided to assign the radio spectrum to the existing mobile network operators only," the spokesman said.
"The available spectrum will be divided into six frequency bands, each with a bandwidth of 0.8 MHz x 2. Existing mobile network operators may bid for one to all six frequency bands. The use of the frequency bands will be subject to payment of a spectrum utilisation fee, which is composed of an upfront fee and an annual fee. The minimum amount of the upfront fee is HK$60,000 for each frequency band and the actual amount will be determined in the auction. The annual fee will be pitched at the same level currently applied to public mobile service using the 1800MHz band," the spokesman said.
"The frequency bands to be assigned through this auction exercise will be restricted for use in base stations located outside country parks and specific remote areas. This is because some of the frequency bands have already been assigned to mobile network operators for improvement of their service coverage along hiking trails. Co-ordination with the mobile network operators who are using the same frequencies for serving the country parks and specific remote areas will be required to prevent harmful interference," the spokesman added.
OFTA will auction the frequency bands using the simultaneous multiple round format with an Internet-based software platform. The auction rules and other elements in relation to the frequency assignment are set out in the Information Memorandum which is published today and can be downloaded from OFTA's website at (www.ofta.gov.hk). OFTA will accept bidding applications on May 21 and 22, 2009.
Ends/Friday, April 24, 2009
Issued at HKT 12:01
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