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Mobile & Wireless
Hong Kong awards three 4G licenses
Radio spectrum auction using Internet-based platform a first for country
by Ek Heng, Asia Pacific Correspondent
Hong Kong has awarded licenses for fourth generation (4G) mobile operations to the three highest bidders in a recent spectrum auction. The successful telcos are CSL Limited, Genius Brand Limited and China Mobile Hong Kong Company Limited.
In announcing the awards, the regulator, Office of the Telecommunications Authority (OFTA), said it was the first time the government was deploying an Internet-based software platform for auctioning radio spectrum.
The highest bidder is CSL Limited at HK$523 million (US$67.4 million), while at HK$518 million (US$66.7 million), Genius Brand is second highest and is followed by China Mobile Hong Kong with HK$494.7 million (US$63.7 million). Genius Brand is controlled by PCCW Limited and Hutchinson Telecommunications International Limited.
The OFTA added that successful bidders will be able to deploy the next generation Broadband Wireless Access (BWA) technologies and offer a variety of advanced high-speed multimedia services. It will create opportunities to both network operators and providers of content and service applications, said the OFTA The three bidders have been allocated a total of 90MHz of radio spectrum in the 2.5 GHz brand for a total payment of HK$1.53 billion (US$197.8 million), the OFTA said.
Touching on the background to the auction which was opened in October 2008, OFTA said: “Five companies submitted their applications by the deadline of 16 December 2008 and were qualified to take part in the spectrum auction starting from 12 January 2009.” The other bidders are City Telecom (HK) Ltd. and SmarTone Telecommunications Holdings Ltd. There are 17 mobile operators in Hong Kong.
Hutchinson planning Indonesian exit
Meanwhile, Hutchinson Telecommunications (HTIL) which also operates outside Hong Kong to offer mobile services in six other countries in Asia is planning to exit from Indonesia. It offers mobile services in Indonesia through Hutchinson CP Telecommunications (HCPT), a joint venture with CP Group of Indonesia.
‘Negative factors’ were reportedly cited for its decision which included ‘complicated regulatory risks.’ The joint venture operates 2G and 3G platform in Indonesia and has a subscriber base of 3.6 million as at September 2008 giving it a market share of 2.8 percent.
In December 2007, Indonesia invoked its anti-monopoly laws against Temasek Holdings, Singapore’s sovereign wealth fund manager, for its indirect holdings in two telcos, Indosat and PT Telkomsel. The stakes in the two Indonesian telcos were owned by two Singapore entities – one, a fully owned investment unit, ST Telemedia and the other is publicly-listed, Singapore Telecommunications Limited, in which Temasek has substantial interests. Following unsuccessful appeal in May 2008, ST Telemedia sold its stake in Indosat to Qtel, Qatar Telecom.
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