Broadband

Hong Kong Plans Major Spectrum Auction to Boost 5G Services

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Hong Kong’s Office of the Communications Authority (OFCA) has unveiled plans to auction new spectrum in the 850/900 MHz, 2.3 GHz, and 6/7 GHz bands. The new allocations aim to enhance 5G services’ network capacity, speed, and coverage. OFCA has invited interested parties to apply, emphasizing the spectrum’s significance in advancing public mobile communications.

A spokesperson for OFCA commented, “The Communications Authority and the Secretary for Commerce and Economic Development issued joint statements to assign 510 megahertz of spectrum through auction this year for public mobile services, including 5G services.”

On November 11, OFCA will auction 110 megahertz of reassigned spectrum in the 850/900 MHz and 2.3 GHz bands. This will be followed by an auction on November 25, where 400 megahertz in the 6/7 GHz band will be available. Successful bidders will receive unified carrier licenses valid for 15 years, providing a long-term foundation for 5G service expansion.

The auction reserve prices are set at HKD 4 million (around $512,000) per megahertz for the 850/900 MHz and 2.3 GHz bands, and HKD 2 million per megahertz for the 6/7 GHz band. The final spectrum utilization fees will emerge from the auction results. OFCA has implemented spectrum caps to avoid over-concentration, limiting each assignee to 10 megahertz in the 850/900 MHz band, 50 megahertz in the 2.3 GHz band, and 140 megahertz in the 6/7 GHz band.

This spectrum allocation comes after OFCA’s recent announcement regarding the second-round assignment in the 26 GHz and 28 GHz bands. The authority will distribute 1,200 megahertz of spectrum in the third quarter to China Mobile Hong Kong (CMHK), Hong Kong Telecommunications (HKT), Hutchison Telephone Company (HTCL), and SmarTone. HTCL will receive 600 megahertz, while CMHK, HKT, and SmarTone will each gain an additional 200 megahertz.

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