SmarTone-Vodafone Confirms LTE Network Upgrade Intent

Hong Kong's SmarTone-Vodafone has announced that it plans to migrate its network towards an LTE platform after it withdrew from last weeks WiMAX license auction. The operator said that it decided not to persue the WiMAX option after the cost of the license started to exceed the cost of deploying the LTE upgrade.

SmarTone-Vodafone said that its maximum bid price for the WiMAX license was based on the incremental value attributable to implementing LTE with the new spectrum, and the savings made upon return of existing excess spectrum to the government. As bidding for the new spectrum went beyond this maximum bid value, SmarTone-Vodafone chose instead to implement LTE on its existing spectrum.

"We will re-use part of our existing spectrum to implement LTE. This provides the greatest flexibility and the most efficient way to meet market demand for LTE as and when required, as well as maximising value for our shareholders and customers." said Mr. Douglas Li, CEO of SmarTone-Vodafone.

SmarTone-Vodafone is assured that its existing spectrum is capable of supporting business growth with HSPA and HSPA+ in the next several years, even assuming robust growth in traffic and capacity requirements. It is also confident that proven LTE equipment and devices will be widely available by the time it commences LTE implementation. SmarTone-Vodafone's implementation of LTE with existing spectrum at lower frequencies will be relatively more complex but offers the benefit of better radio in-building coverage, an important advantage in the Hong Kong cityscape.

At present, SmarTone-Vodafone's network can already support download speeds of up to 14.4 Mbps and upload speeds of up to 5.76 Mbps.

"Our decision to implement LTE through the re-use of existing spectrum makes financial sense and it's good for our customers as well as our shareholders. It underpins our longterm commitment to wireless as the most efficient medium to deliver integrated total communications to customers at home, at work and anywhere in between. This way we will continue to enhance our unique proposition of providing a better service at the best value," Mr. Li added.

Posted to the site on 26th January 2009