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Hong Kong: Regulators set 3G re-allocation rumors straight

 |  December 9, 2013

The Office of the Communications Authority in Hong Kong has released an official statement this week to clarify misunderstandings regarding its planned re-allocation of 3G spectrum, responding to outcry regarding its decision to obtain one-third of spectrum currently held by top operators.

The OFCA said it plans to auction off that spectrum to allow a fifth market entrant in the wireless industry in October 2016. Reports say China Mobile Hong Kong will be like likely recipient of some of that spectrum.

One-third of the current 3G spectrum held by operators will be re-auctioned. The OFCA justified this approach by stating that spectrum only accounts for seven-to-ten percent of each operator’s spectrum.

Further, the OFCA defended its decision to establish a Spectrum Utilization Fee, claiming that fee will only amount to about .5 percent of the companies’ annual operating costs; operators had earlier suggested that the fee would rise due to the re-auctioned spectrum, ultimately passing on higher costs to wireless customers.

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