The auction of radio spectrum in Hong Kong for the provision of 5G and potentially future 6G mobile services marks a significant step in enhancing the region’s digital economy and mobile broadband connectivity. This auction, conducted by the Office of the Communications Authority (OFCA), is notable as the first global instance of an auction in the 6/7 GHz band.
Key Players and Allocation
Hong Kong’s leading telecom providers, China Mobile Hong Kong, SmartTone, and Hong Kong Telecommunications (HKT), have each secured a 100 megahertz block of the 300 megahertz spectrum in the 6/7 GHz band for HKD 210 million ($27 million). This mid-band spectrum is vital due to its high speed and capacity, which are crucial for deploying advanced mobile communication services such as 5G and the upcoming 6G technologies.
Financial and Compliance Requirements
Carriers participating in the auction are required to pay spectrum utilization fees and submit performance bonds by January 15, 2025. These measures ensure that they adhere to network and service rollout guidelines outlined by OFCA. The spectrum allocation, effective by March 31, 2025, has a validity period of 15 years, reflecting Hong Kong’s commitment to sustained improvement of its telecommunications infrastructure.
Previous Auction Results
In addition to the recent 6/7 GHz auction, Hong Kong has seen successful bids in other spectrum bands. China Mobile Hong Kong notably acquired 50 megahertz in the 2.3 GHz band for HKD 1.07 billion. Hutchison Telecom also made significant acquisitions, securing 10 megahertz in the 850 MHz band and an additional 20 megahertz in the 2.3 GHz band for HKD 617 million. HKT and SmartTone were active participants as well, claiming 20 megahertz in the 2.3 GHz band for HKD 400 million and 10 megahertz in the 850 MHz band for HKD 151.5 million, respectively.
Future Spectrum Assignments
OFCA’s strategic initiatives continue to reshape Hong Kong’s telecommunications scenario. A total of 1,200 megahertz of spectrum in the 26 GHz and 28 GHz bands will be assigned in the third quarter to leading carriers like China Mobile Hong Kong, HKT, Hutchison Telephone Company, and SmartTone. These extensive allocations are part of a broader effort to maintain and enhance Hong Kong’s competitive edge in the global telecommunications landscape.
Launching Commercial Services
Major telecom operators in Hong Kong, including China Mobile Hong Kong, Hutchison, and HKT, launched commercial 5G services in April 2020. SmartTone followed in May 2020, employing Ericsson’s Dynamic Spectrum Technology (DSS). Before these advancements, local operators had secured 200 megahertz of the 3.5 GHz spectrum in mid-October 2019, with 5G licenses valid for 15 years.
Strategic Advancements
The auction of the radio spectrum in Hong Kong to support 5G and possibly future 6G mobile services is a major milestone for improving the region’s digital economy and mobile broadband. Implemented by the Office of the Communications Authority (OFCA), this auction stands out because it is the first auction of its kind in the 6/7 GHz band globally. Hong Kong’s strategic move to auction off this spectrum will significantly boost the area’s telecommunications infrastructure, ensuring that it can keep pace with global advancements in mobile technology. The addition of 5G services will provide faster data speeds, greater capacity, and more reliable connectivity, meeting the growing demand for high-speed internet. Furthermore, by preparing for potential 6G developments, Hong Kong is positioning itself as a forward-thinking leader in the tech industry. This proactive approach demonstrates not only a commitment to current technological advancements but also a readiness to adapt and lead in future innovations. Overall, the auction is a crucial step in bolstering Hong Kong’s position in the global digital landscape.
