wireless access
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The Office of the Telecommunications Authority (OFTA) today (August 31) invited further views on the proposed licensing framework for broadband wireless access (BWA). This follows the first consultation initiated in December 2004.
BWA refers to technologies based on the use of high-capacity radio links to enable consumers to access telecommunications services, including broadband services. Apart from the capability in substituting the "last mile" links provided by Type-II interconnection, it is anticipated the new BWA technologies will soon be developed to have full mobility capabilities, enabling consumers to enjoy wider choices of innovative services in the near future.
"The primary objective of the Government to offer the BWA spectrum for deployment by the industry is to facilitate the progressive withdrawal of Type II interconnection links in fixed telecommunications services," a spokesman for OFTA said. "On the other hand, it is envisaged that BWA would be further developed to support full mobility services in the not-too-distant future. The phased approach of permitting BWA usage for mobility is devised with a view to enabling deployment of BWA technologies as a substitute for Type II interconnection links while removing regulatory uncertainty surrounding the deployment of BWA technologies for full mobile services as soon as such capabilities are reasonably available and supported. Thus the Government sees it is opportune to introduce the proposed licensing framework to embrace the development of the new technologies."
Having considered the submissions received during the first consultation conducted in December 2004, the Telecommunications Authority (TA) presents in the second consultation paper published today the proposed details of the regulatory framework for the deployment of BWA.
"The TA proposes to offer 180 MHz of BWA spectrum in the 3.4 - 3.6 GHz band, comprising six paired bands of 15 MHz x 2, for deployment by the industry in 2006. The spectrum resources would allow for a maximum of six network operators offering territory-wide BWA services, and the operators may use any technology that conforms to recognised open standard," the spokesman said.
"The TA is prepared to issue a new type of carrier licence, a Unified Carrier Licence with a validity period of 15 years, for network operator of BWA spectrum. Under this licence, the licensee may provide fixed telecommunications services initially, including the conventional fixed services and "nomadic" services of "limited mobility" nature. The scope of permitted service will be expanded to include "full mobility" services after January 1, 2008. Licensees will be required to start offering public services within two years of being awarded the BWA spectrum," the spokesman added.
"The TA proposes that BWA spectrum should be assigned by means of a hybrid selection approach which includes a pre-qualification followed by a 'simultaneous multiple round ascending auction'. Any interested party, including existing fixed/mobile carriers and new entrants, may bid for the BWA spectrum. The above arrangement ensures that BWA spectrum will be assigned to those who will value it most and use it in the most economically efficient manner," the spokesman continued.
"An up-front lump sum payment is proposed to be adopted for the spectrum utilisation fee (SUF) for BWA," the spokesman added.
"The BWA licensing framework influences how network operators roll out their access networks to provide telecommunications services in Hong Kong. In forming his current views and proposals, the TA has reviewed the submissions to the first consultation and the latest development of BWA in the worldwide market. Further comments and views collected in this round of consultation will be studied thoroughly before the TA determines the appropriate BWA licensing framework," the spokesman said.
The consultation paper can be downloaded from OFTA's website: www.ofta.gov.hk. Any views or comments on this consultation should reach OFTA by October 31, 2005. Electronic submission to bwa@ofta.gov.hk is welcome.
Ends/Wednesday, August 31, 2005
Issued at HKT 16:50
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