The Secretary for Commerce and Economic Development (SCED) and the Communications Authority (CA) today (September 19) jointly launched a public consultation on the proposed arrangements for the reassignment of 50 MHz of spectrum in the 2.5/2.6 GHz band for the provision of public mobile services as well as the related spectrum utilisation fee (SUF).
The 50 MHz of spectrum in the 2.5/2.6 GHz band is currently deployed for the provision of fourth generation (4G) mobile services, with the existing assignments due to expire in May 2028. The good radio propagation characteristics of spectrum in the band facilitates the deployment of radio base stations with wider geographical coverage, enabling the continued provision of public mobile services in a cost effective manner.
"As there are likely to be competing demands for the spectrum, the CA proposes to reassign it by way of auction. Under the technology neutral approach, prospective spectrum assignees may make use of the spectrum acquired for the provision of 4G, 5G or more advanced mobile services to meet the future demand for high-speed mobile broadband services and other innovative mobile technology applications," a spokesman for the CA said.
Similar to other spectrum assigned for public mobile services by way of auction, the SCED proposes that the SUF should reflect the full market value, and will set the auction reserve prices nearer the time.
"The auction ensures that spectrum as a scarce public resource will be put into the hands of those who value it the most and will consequently put it to the most efficient use, thereby benefiting the general public at large," a spokesman for the Commerce and Economic Development Bureau (CEDB) said.
Views and comments from the industry and other interested parties on the consultation paper are welcome on or before October 31. After taking into account the views and comments received, the SCED and the CA target to make their respective decisions no later than May 2025, thereby giving a three-year advance notice to the incumbent spectrum assignees before the expiry of the existing assignments.
The consultation paper can be downloaded from the websites of the CEDB and the CA.
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