The Office of the Communications Authority (OFCA) announced today (20 November 2024) that after a total of 110 rounds of bidding in seven days, the auction of radio spectrum in the 850/900 MHz and 2.3 GHz bands was concluded. A total of 110 MHz of spectrum in 11 frequency blocks was auctioned off to four mobile network operators at total spectrum utilization fees (SUFs) of $2,242.5 million.
The results of the auction are listed in the table below:
| Frequency block | Frequency range (MHz) | Provisional successful bidder | SUF payable ($) |
|---|---|---|---|
| A1 | 832.5 - 837.5 paired with 877.5 - 882.5 | SmarTone Mobile Communications Limited | 151,500,000 |
| A2 | 885.0 - 890.0 paired with 930.0 - 935.0 | Hutchison Telephone Company Limited | 223,500,000 |
| B1 | 2300 - 2310 | Hutchison Telephone Company Limited | 142,500,000 |
| B2 | 2310 - 2320 | Hutchison Telephone Company Limited | 251,000,000 |
| B3 | 2320 - 2330 | China Mobile Hong Kong Company Limited | 217,000,000 |
| B4 | 2330 - 2340 | China Mobile Hong Kong Company Limited | 196,000,000 |
| B5 | 2340 - 2350 | China Mobile Hong Kong Company Limited | 215,000,000 |
| B6 | 2350 - 2360 | China Mobile Hong Kong Company Limited | 226,500,000 |
| B7 | 2360 - 2370 | China Mobile Hong Kong Company Limited | 219,500,000 |
| B8 | 2370 - 2380 | Hong Kong Telecommunications (HKT) Limited | 280,500,000 |
| B9 | 2380 - 2390 | Hong Kong Telecommunications (HKT) Limited | 119,500,000 |
"The spectrum auction implements the 2023 Policy Address initiative to promote telecommunications development. Apart from using the spectrum for continued provision of fourth generation (4G) mobile communications services, successful bidders can also refarm relevant spectrum for 5G and future generations of mobile communications services (including 6G), thereby further enhancing overall service quality and driving innovation, benefitting all citizens in Hong Kong. In addition, benefitting from the amendments to the Inland Revenue Ordinance (Cap. 112) that came into effect in January this year, mobile network operators can enjoy full tax deductions for SUFs payable on radio spectrum acquired," a spokesman for OFCA said.
The assignment of the frequency blocks will be valid for a period of 15 years. Each provisional successful bidder is required to submit a Letter of Credit by 13 January 2025, in full amount to guarantee payment of the SUF as specified in the table above. The provisional successful bidders are also required to submit performance bonds, where applicable, to ensure compliance with the network and service rollout requirement before the actual frequency assignments take effect.
In addition, the auction of the newly launched 6/7 GHz band spectrum as mentioned in the 2023 Policy Address will take place on 25 November.
Office of the Communications Authority
20 November 2024