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The Government today (November 26) issued a public consultation paper to invite views from members of the public and the industry on the proposed implementation of a charging scheme in respect of a radio spectrum utilisation fee (SUF) for administratively assigned spectrum.
The consultation paper sets out the Government's proposal to impose the SUF on spectrums that are administratively assigned to non-Government users, and gives details on the relevant guiding principles, the proposed level of SUF and its calculation methodology, and the implementation details.
"Radio spectrum is a scarce public resource. The proposed SUF charging scheme would serve as a price signal to encourage users of spectrum in congested bands to deploy spectrum assigned to them in a more efficient manner and, where applicable, return the surplus spectrum to the Government for subsequent assignment to other more needy users. This will be to the benefit of the other spectrum users and the community as a whole," a Government spokesman said.
Under the proposal, the SUF will be imposed on spectrum in frequency bands that are currently congested and are anticipated to be more congested in future. Accordingly, eight frequency bands used as fixed links, electronic news gathering/outside broadcast links and certain satellite links would be subject to SUF, and their levels would be based on the estimates of the opportunity cost of the concerned frequency bands.
There will be a transitional period of five years before the charging scheme is fully in force. To encourage spectrum users to return their surplus spectrum early and to provide an incentive for users to migrate to other means of providing their services (such as procuring new equipment in other frequency bands or moving to other alternatives), the Government proposes to offer a one-off grant capped at 10% of the annual SUF applicable to the spectrum.
The Government also proposes to review the bands that are subject to SUF as well as the level of SUF every five years. "Conducting regular reviews will help ensure that the system of SUF is up to date and compatible with the changing trends of spectrum utilisation and the technological landscape," the spokesman said.
In line with the Radio Spectrum Policy Framework published by the Government in 2007, SUF is in principle applicable to all non-Government uses of spectrum. SUF is already being imposed on spectrum assigned to public mobile communications services through auction. The Government appointed a consultant in 2009 to develop a generic system for setting SUF in respect of spectrum assigned administratively. The existing proposal has taken into account the recommendations of the consultant.
The consultation paper is available at the websites of the Commerce and Economic Development Bureau (www.cedb.gov.hk/ctb/eng/paper/pdf/suf_e.pdf) and the Office of the Telecommunications Authority (www.ofta.gov.hk/en/report-paper-guide/paper/consultation/cp20101126.pdf). Members of the public are welcomed to give views and comments on or before February 25, 2011 by post to: Office of the Telecommunications Authority, 29/F Wu Chung House, 213 Queen¡¯s Road East, Wan Chai, Hong Kong; by fax to 2803 5113; or by email to suf@ofta.gov.hk.
Ends/Friday, November 26, 2010
Issued at HKT 15:36
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