The Hong Kong government has successfully raised HKD2.24 billion ($288 million) through its recent 5G spectrum auction. According to a statement from Hong Kong’s Office of the Communications Authority (OFCA), 110 megahertz of repurposed mobile spectrum were sold over a seven-day auction. This endeavor highlights Hong Kong’s commitment to advancing its telecommunications sector.
China Mobile Hong Kong came out on top by securing the maximum 50 megahertz allocation in the 2.3GHz spectrum band, paying an impressive HKD1.07 billion. Meanwhile, Hutchison Telecom obtained a total of 30 megahertz across different bands, splitting its acquisition between the 850MHz and 2.3GHz bands for HKD617 million. HKT invested HKD400 million for 20 megahertz in the 2.3GHz band, and SmarTone acquired 10 megahertz in the 850MHz band for HKD151.5 million.
The 5G auction, conducted in a structured approach, divided spectrum into 11 separate blocks. This allocation allows successful bidders to enhance their existing networks and possibly expand into future innovations, such as 6G. A spokesperson from OFCA emphasized this point, stating, “The spectrum auction implements the 2023 Policy Address initiative to promote telecommunications development…further enhancing overall service quality and driving innovation.”
Successful bidders in the auction have payment flexibility. They can choose between paying the full amount immediately or opting for an annual spectrum utilization fee (SUF). However, all provisional successful bidders must submit a Letter of Credit by January 13, 2025, ensuring the SUF payment. Furthermore, performance bonds may be necessary to comply with network and service rollout requirements.
Looking ahead, OFCA is set to conduct an additional auction. This event, slated to offer a 400 megahertz block of spectrum in the 6GHz to 7GHz range, is part of ongoing efforts to enhance Hong Kong’s telecommunications capabilities.
