Hong Kong to Auction Off Broadband Wireless Licenses
Hong Kong's Office of the Telecommunications Authority (OFTA) has invited applications for Hong Kong's Broadband Wireless Access (BWA) licences - which are generally expected to be used to provide WiMAX services.
"To maintain Hong Kong as a leading wireless city, the Government has decided to release radio spectrum in the 2.3 GHz and 2.5 GHz bands for the provision of BWA services. The deployment of the technologies will enable the public to enjoy advanced high-speed wireless fixed and mobile services," the spokesperson of OFTA said.
"The available radio spectrum of 195MHz is divided into 12 frequency bands, each with a bandwidth varying from 5 MHz to 30MHz, for bidding in the auction to be held in January 2009. Both new entrants and incumbent licensees can take part in the auction. Each of the bidders may bid for any combination of frequency bands, subject to a spectrum cap of 30 MHz," the spokesperson continued.
With the use of a simultaneous multiple round ascending auction format, all the 12 frequency bands will be auctioned simultaneously over multiple rounds. The SUF payable for the use of each frequency band will be determined by the highest valid bid for that frequency band in the auction.
"To reflect the value of the radio spectrum as a scarce public resource and having taken into account the international benchmarks, local market situations and technological development, the Government has set the minimum SUF at 3 million USD for every 5 MHz of spectrum. The actual amount of SUF payable by successful bidders will be determined by the results of the auction exercise. Successful bidders will be required to pay the SUF as a single upfront payment and to offer services within five years from the grant of the licence," the spokesperson added.
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