Hong Kong to Offer a CDMA2000 License

Hong Kong's telecoms regulator, OFTA has invited bids for a CDMA2000 license. The auction will be the second one to take place in Hong Kong for the assignment of radio spectrum since the auction of the radio spectrum for 3G mobile services in September 2001.

"One licence will be issued for the provision of CDMA2000 services starting from 20 November, 2008. Radio spectrum with a bandwidth of 7.5 MHz x 2 in the 850 MHz band will be assigned to the licensee. The use of such radio spectrum will be subject to a one-off lump sum payment of SUF, the amount of which is to be determined in the auction exercise," a spokesperson of the Office of the Telecommunications Authority (OFTA) said.

The reserve price is set at HK$76 (US$9.7) million.

"Regarding the format of the auction, this will be a multiple round ascending auction. Similar to the auction held in 2001, this auction will be held with a high level of confidentiality such that the identity of the bidders and their submitted bids in each round of the auction will not be disclosed during the auction. This arrangement is intended to prevent collusive behaviour and manipulation of the auction process," continued the spokesperson.

"New entrants and existing licensees may participate in the auction. They may participate on their own and/or cooperate with others. The cooperation may be in the form of joint venture or other types of agreements. While prior consent from the Telecommunications Authority is not required for any form of cooperation, existing licensees should ensure compliance with the competition provisions in the Telecommunications Ordinance, for example, the prohibition of anti-competitive conduct," the spokesperson said.

The auction is intended to be held around late October or early November. The new licensee will have about one year lead time to roll out its network before commencing to provide CDMA2000 services from 20 November, 2008.

Posted to the site on 31st August 2007