**********************************************************
The Office of the Telecommunications Authority (OFTA) announced today (February 6) that two existing mobile network operators and one new entrant have successfully bid for a total of 90 MHz of radio spectrum in the 2.3 GHz band at a total sum of spectrum utilisation fees (SUF) of $470 million.
"Over the past two years, mobile data service has continued to grow at a spectacular rate. As a result, the industry finds it necessary to continually provide for additional network capacities in order to meet the market demand. With the assignment of the radio spectrum through the spectrum auction today, the successful bidders will be able to deploy state-of-the-art mobile broadband technologies and provide the necessary network capacities to maintain the momentum of growth of the booming service," a spokesman for OFTA said.
Three existing mobile network operators and one new entrant took part in the spectrum auction. Conducted on an Internet-based software platform, the auction commenced today and came to a satisfactory conclusion after a total of six bidding rounds. The provisional successful bidders, the radio spectrum under bidding and the SUF determined in the auction are tabulated below:
Provisional Radio Spectrum SUF Payable
Successful Bidders Bid (HK$ million)
21 ViaNet Group Frequency Band A1 150
Limited (2300-2330 MHz)
China Mobile Hong Frequency Band A2 170
Kong Company (2330-2360 MHz)
Limited
Hutchison Telephone Frequency Band A3 150
Company Limited (2360-2390 MHz)
Total 90 MHz 470
"The Telecommunications Authority issued a provisional successful bidder notice today. Each of the provisional successful bidders is required to pay the SUF, submit a performance bond and comply with other necessary regulatory requirements within 30 business days after the issue of the notice. The acquired spectrum will be assigned under a 15-year unified carrier licence. The licensees will be required to provide a minimum coverage of 50 per cent of the population of Hong Kong as regards its mobile services, or a minimum coverage of 200 commercial and/or residential buildings as to its fixed services within five years from the grant of the licences," the spokesman added.
Ends/Monday, February 6, 2012
Issued at HKT 19:38
NNNN
