OFTA proposes public auction of radio frequency spectrum for CDMA2000 mobile service
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    To enable the continuity of the CDMA mobile service, the Office of the Telecommunications Authority (OFTA) issued today (October 27) a public consultation paper proposing to release radio frequency spectrum in the 850 MHz frequency band through a public auction for the provision of a mobile service using the CDMA2000 standard.

     "The frequency assignment for the existing CDMA licensee will expire on November 20, 2008. As the regulator, we have the responsibility to ensure the continued availability of the CDMA mobile service to local consumers, roamers from Mainland China and roamers from other parts of the world as well. The licensing of a new mobile service using the CDMA2000 standard will contribute to the harmonisation of popular mobile services with the Mainland as well as other parts of the world, thereby strengthening Hong Kong's position as a strategic gateway," said a spokesperson for OFTA.

     Under the proposal, a block of frequencies from 825 ¡ª 835 MHz paired with 870 ¡ª 880 MHz i.e., a maximum of 20 MHz of radio frequency spectrum will be made available for a single new licence to enable the provision of the CDMA2000 mobile service. The new licence will be subject to the payment of a one-off Spectrum Utilisation Fee (SUF), the amount of which will be determined through a public auction. Incumbent licensees will be permitted to take part in the auction.  

     "We are mindful of the Spectrum Policy Review (SPR) which is being conducted by the Government. Given that it takes time to conclude the SPR consultation, we consider that it is in the public interest to cater for the ongoing needs of the community, and hence our decision to conduct this consultation in parallel with the SPR.

     "We have to act proactively and swiftly to consider the release of radio frequency spectrum in a timely manner so that the needs of the community may be met," continued the spokesperson.

     Interested parties are invited to submit comments on the proposed licensing exercise by December 27, 2006. The consultation paper can be downloaded from OFTA's website at www.ofta.gov.hk.

Background

     The Telecommunications Authority announced his decision in November 2004 that the licensee of the CDMA service would not be granted a new licence upon the expiry of its licence. Instead, the licensee was offered the retention of one-third of the originally assigned spectrum for the purpose of subscriber migration for a period of three years, which is due to end on November 20, 2008. After that date, the assigned spectrum will be withdrawn and it will be made available for assignment to the successful bidder in this auction exercise.

Ends/Friday, October 27, 2006
Issued at HKT 16:06

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