In a significant move for the mobile landscape, the Hong Kong government has introduced a subsidy strategy to aid the deployment of 5G base stations in rural and underdeveloped regions. Noteworthy regulatory data backs up this seemingly unusual step given Hong Kong’s advanced mobile sector, where the government has historically prioritized 5G development over raising hefty license fees. This project aligns with their ongoing strategy.
Remoteness is a key factor here, as Hong Kong’s reputation often misleads due to its towering skyscrapers and dense population. Yet, it hosts many isolated villages, especially in the northern regions close to the Chinese border. Recognizing this, the Office of the Communications Authority (OFCA) has opened the doors for licensed mobile operators to apply for subsidies under a new scheme. This assistance aims to support the installation of approximately 50 base stations. It targets country parks, remote islands, and other rural territories.
While OFCA has not disclosed the precise funding amount for this scheme, calculations indicate it could cost around HK$200 million (over US$25 million), possibly lower, depending on the complexity of the individual sites. The funds available range from up to HK$2 million per base station, with an additional HK$2 million for more challenging deployments.
An OFCA representative commented, “We anticipate that once the new [base stations] are completed and activated, mobile network coverage of country parks in Hong Kong will increase to at least 90 per cent, while coverage along major government hiking trails will reach 98 per cent or above.” They further asserted that the scheme will enhance network coverage, benefitting 70 nearby villages and promoting smart tourism.
Hong Kong’s primary mobile network operators, China Mobile, HKT, Hutchison, and SmarTone, can now apply for these subsidies, with the application window available until 2028 or when funding depletes. All base stations must be operational within four years post-application.
This initiative follows the Hong Kong government’s recent decision to allocate mmWave frequencies to these operators at no extra cost. It is another show of commitment to advancing 5G technology while ensuring equitable spectrum distribution. Meanwhile, OFCA will conduct a spectrum auction in October to reissue airwaves in the 2.5-2.6 GHz bands. With competitive reserve pricing, the 50 MHz auction exemplifies the region’s proactive spectrum strategy.
