26 September, 2019
Hong Kong authorities have recently issued three separate announcements of spectrum bands that will be made available to telecoms providers, ranging from auctions of new 5G spectrum to the availability of spectrum vacated by the switch off of analogue TV and non-exclusive, geographically shared spectrum.
New spectrum assignments for Hong Kong's TV licensees following release of existing spectrums for mobile telecommunications services
Hong Kong Communications Authority has announced plans, in light of the government's policy initiatives, to vacate a total of 160MHz spectrum in the 614 – 806 MHz band for deployment of mobile telecommunications services (including 5G mobile services) to benefit the Hong Kong community by the end of 2021, subsequent to analogue switch-off for TV services in November 2020. The band is currently assigned to two TV licensees: Television Broadcasts Limited (TVB) and HK Television Entertainment Company Limited (HKTVE) for broadcasts of TV programmes. CA would assign new TV frequency channel at 598 – 606 MHz band to the licensees in February 2021.
Hong Kong Office of the Communications Authority begins auctions of 5G spectrum
On 19 July 2019, OFCA announced upcoming auctions of a total of 380 MHz of 5G spectrum in the 3.3 GHz, 3.5 GHz and 4.9 GHz bands. The first auction will be for the 3.5 GHz band to be held on 14 October 2019 with applications accepted on either 12 or 13 September 2019, followed by auctions for the 4.9 GHz band and 3.3 GHz band. The government has set the auction reserve prices for the 3.3 GHz, 3.5 GHz and 4.9 GHz bands to be HK $2 million per MHz, HK $4 million per MHz and HK $3 million per MHz respectively. Subsequently, on 23 August 2019, CA provided Q&A documents on the auction of the 3.3 GHz, 3.5 GHz and 4.9 GHz bands, which include information relating to auction arrangements and logistics and licensing matters. On 26 August 2019, OFCA released a “5G Thematic Website” aimed to educate the public on how 5G mobile technology will change the means of communication and enable the development of many innovative applications.
Hong Kong Office of the Communications Authority invites applications for assignment of shared spectrum in 26 GHz and 28 GHz bands
On 15 July 2019, OFCA invited applications for assignment of a total of 400 MHz of spectrum in the 26 GHz band (24.25 – 27.5 GHz) and 28 GHz band (27.5 – 28.35 GHz), for provision of innovative wireless broadband services based on 5G or other advanced mobile technologies on a non-exclusive, geographically sharing basis. Successful applicants will be given a Localised Wireless Broadband Service License valid for five years, during which they can deploy the shared spectrum for use in specified locations in Hong Kong, subject to a total network coverage limit of 50 km2. Mobile network operators already awarded spectrum in these bands for provision of conventional large-scale 5G mobile services by OFCA earlier will not be eligible to apply.
Revamped licensing regime for the Class License for Offer of Telecommunications Services
CA has revamped the existing Class License for Offer of Telecommunications Services regime under the Telecommunications Ordinance (Cap.106) which will come into effect on 26 October 2019. The CLOTS regime deems any person who offers telecommunications services without operating any telecommunications means in Hong Kong to be a licensee subject to licensing conditions for regulatory oversight. CLOTS licensees are mainly resellers of telecommunications services operated by licensed operators, offering products such as "Wi-Fi Eggs", local mobile voice and/or data services, local fixed voice and/or broadband services, prepaid IDD services and prepaid international voice/data roaming services. The revamped regime introduces a new registration requirement for licensees with a customer base of 10,000 subscriptions or more, requiring them to register with CA and provide prescribed company and services information. To facilitate a smooth transition for the new registration requirement, a three-month grace period after the effective date is allowed. Coupled with requirements for licensees to provide prescribed information to consumers and submit annual updates to CA, this revamped regime reflects CA's efforts to strengthen compliance monitoring over CLOTS licensees and safeguard consumer interests. CA has released guidelines to assist service providers to comply with the revamped CLOTS regime.
Anti-extradition bill protests in Hong Kong may trigger the Government's deployment of emergency laws which may restrict Internet access
Following the unrests in Hong Kong over the now withdrawn extradition bill, it has been reported that the Hong Kong Chief Executive Carrie Lam may invoke the Emergency Regulations Ordinance once used during Hong Kong's 1967 riots, to control and suppress publications and communications in Hong Kong. The Chief Executive may potentially order private telecommunications companies and internet service providers to block Internet applications and websites used by protesters. In response, the Hong Kong Internet Service Providers Association (HKISPA) issued an urgent statement warning that this may spell "the end of the open Internet of Hong Kong" and deter businesses' investments. HKISPA also warned that this may negatively impact the mainland China, since Hong Kong helps transit more than 80% of China's internet traffic, as well as local and international companies operating more than 100 data centres in Hong Kong.
For further information, please contact:
John Koh, Director, Osborne Clarke
john.koh@osborneclarke.com
