In 2020/21, we ushered in the era of extensive 5G services and full digital television broadcast. One of our most significant endeavours is to sustain the momentum for their further development in Hong Kong.
Mr Chaucer LEUNG, JP
Director-General of Communications
I am delighted to present the 2020/21 annual report of the Office of the Communications Authority (OFCA) Trading Fund.
Despite the social and economic challenges brought by the pandemic, the Hong Kong telecommunications market remained vibrant and maintained a strong momentum for growth.
We are among the most advanced telecommunications markets of the world with one of the highest local mobile and fixed broadband penetration rates. With a mobile penetration rate of 291% and a total of 23 million mobile service subscriptions, mobile connectivity is an indispensable part of daily life and there has been a tremendous growth in mobile data usage. In March 2021, there were more than 93 900 Terabytes of total mobile data consumption or 12.6 Gigabytes on per capita basis, both increased by 350% as compared with five years ago.
The commercial launch of fifth generation (5G) services on 1 April 2020 represents a new era of telecommunications, offering both business and individual users a new world of possibilities for innovative telecommunication services and applications.
As of March 2021, 5G networks have reached over 90% of the Hong Kong population. Our high-speed optical fibre network also has an extensive reach serving 2.9 million broadband subscriptions at a household broadband penetration rate of over 95% (84% of which being served by optical fibre).
Hong Kong has a thriving broadcasting sector offering a broad range of services. Residents can access over 750 local and overseas television programme channels in various languages through free-to-air television services, pay television services, satellite reception, and 13 local radio channels. Hong Kong is also a prime location for uplinking satellite television services due to our favourable geographical location, excellent infrastructure and other positive factors. There are currently ten non-domestic television programme service licensees providing over 220 satellite television programme channels for audiences across the Asia-Pacific region. The Government’s “open sky” policy provides unmatched access to unencrypted satellite television programme channels uplinked from Hong Kong and elsewhere in the world for free. Over 520 such free satellite television programme channels are currently available in Hong Kong.
OFCA had made remarkable progress in 2020/21. I would like to highlight some of our major accomplishments below.
Facilitating the continued development of 5G services remained to be a major focus of our work in 2020/21. Following the timely release of about 2 000 MHz of spectrum in the mid and high frequency bands to the market in 2019/2020 leading to the successful commercial launch of 5G services in April 2020, we assisted the Communications Authority (CA) in making available an additional supply of 220 MHz of new spectrum in the low and mid frequency bands for the provision of 5G services, which will facilitate enhancement of network coverage, speed and capacity of 5G services.
Spectrum in the high frequency bands is instrumental in the provision of extremely high-speed and high-capacity data transmission in the 5G era. In April 2019, three incumbent mobile network operators (MNOs) were assigned a total of 1 200 MHz of spectrum in the 26 GHz and 28 GHz bands. In addition, application for the assignment of up to 400 MHz of spectrum in the 26 GHz and 28 GHz bands for use on a geographically shared basis to provide localised wireless broadband services has been open since July 2019. OFCA continued to support the CA in 2021 in keeping a close watch of the market development for the 26 GHz and 28 GHz bands.
OFCA will continue to keep abreast of worldwide development trends in telecommunications and monitor spectrum planning at international and regional levels. OFCA has set up an in-house task force on spectrum supply with a view to ensuring timely release of suitable spectrum to meet the needs of emerging radiocommunications services and facilitate the on-going development of public mobile (including 5G) services in Hong Kong.
As a long-term solution to remove the “3.5 GHz restriction zone” in Tai Po, OFCA has been discussing with the two satellite operators the relocation of their satellite earth station facilities from Tai Po to the Chung Hom Kok Teleport. Taking into account the lead time and effort required to complete the relocation works, it is expected that the “3.5 GHz restriction zone” in Tai Po will be lifted by end-2024. In the meantime, MNOs can make use of other newly assigned frequency bands (e.g. 4.9 GHz band) or re-farm their existing spectrum (e.g. 1.8 GHz and 2.1 GHz bands) to provide 5G services across Hong Kong.
In order to encourage various sectors to deploy 5G technology early to foster innovation and smart city applications, OFCA has been administering the Subsidy Scheme for Encouraging Early Deployment of 5G launched under the second round of the Anti-epidemic Fund since May 2020. Under the scheme, the Government will subsidise 50% of the cost of deployment of 5G technology in an approved project, subject to a cap of $500,000. The scheme received very positive responses from various sectors, supporting novel 5G applications to improve business operations and quality of services while benefiting the society as a whole.
In support of the Government’s policy initiative, OFCA also implemented a subsidy scheme with a funding of HK$770 million to provide financial incentives for fixed network operators (FNOs) to extend their fibre-based networks to 235 villages in remote areas. Following the award of all six tender projects under the scheme between November 2019 and May 2020, the selected FNOs are extending their fibre-based networks to the villages concerned in phases from 2021 onwards. OFCA will continue to monitor the implementation progress of these projects.
In order to reinforce Hong Kong’s role as a regional telecommunications hub, OFCA is working to provide suitable land lots in the Chung Hom Kok Teleport for the establishment of additional external telecommunications infrastructures. An open tender exercise is being prepared.
As one of the initiatives under the first round of the Anti-epidemic Fund, OFCA engaged the MNOs to establish and implement an emergency alert system (EAS) based on cell broadcast technology. Launched in November 2020, the EAS enables prompt dissemination of time-critical messages by the Government to mobile service users via the networks of the MNOs during emergency situations that may extensively endanger lives and properties.
Since 1 December 2020, Hong Kong has entered an era of full digital television broadcast.
Following the switching off of analogue television services on 30 November 2020, six digital television programme channels operating in the 600 MHz and 700 MHz bands will be migrated to the 500 MHz band. The 600/700 MHz bands so vacated will be used for the development of high value-added mobile telecommunications services including 5G, enhancing network capacity and coverage, and relieving the currently congested indoor mobile telecommunications hotspots such as mass transit railway (MTR) stations. Meanwhile, we launched a series of publicity programmes to raise public awareness of the necessary steps for continued reception of the six television programme channels concerned.
OFCA assisted the CA in processing the application by Fantastic Television Limited (Fantastic TV) for the assignment of spectrum to deliver its free television service. Noting that assigning the requested spectrum would enable Fantastic TV to increase its service coverage and launch a new television programme channel, the CA decided in April 2021 to grant an approval-in-principle to Fantastic TV for its provision of more programming choices to more households.
To provide broadcasting licensees greater flexibility in their business operations without compromising the interests of audience, we assisted the CA in reviewing the regulations governing real property advertisements, insertion of advertising materials in programmes covering sports and live events, and broadcast hours of mature programmes. Taking into account the views received from the industry and the public consultation exercise, the CA decided to relax, with effect from September 2020, the relevant provisions in the Television and Radio Codes of Practice on Programme and Advertising Standards.
To underpin continued development of 5G services in Hong Kong, we will support the CA in conducting an auction in the last quarter of 2021 to assign 220 MHz of new spectrum in the 600 MHz, 700 MHz and 4.9 GHz bands and re-assign 105 MHz of spectrum in the 850 MHz and 2.5/2.6 GHz bands. The available spectrum will provide additional capacity to enhance service coverage and speed as well as to promote innovative applications riding on 5G. We will also continue to facilitate the rollout of 5G networks by opening up more government venues through the “demand-led” approach and making available public street facilities such as payphone kiosks and sheltered bus stops for base station installations.
Following the Government’s decision to make the Telecommunications (Registration of SIM Cards) Regulation (Registration Regulation) to implement the real-name registration programme for SIM cards, OFCA assisted the CA in consulting the industry and promulgating a set of implementation guidelines with the same effective date as that of the Registration Regulation on 1 September 2021. We will continue to assist the CA in ensuring the implementation and operation of the SIM card real-name registration programme in accordance with the Registration Regulation and the guidelines.
On the broadcasting front, we will assist the CA in conducting a mid-term review of the free television licences of HK Television Entertainment Company Limited (HKTVE), Television Broadcasts Limited (TVB), Fantastic TV and the sound broadcasting licences of Hong Kong Commercial Broadcasting Company Limited (CRHK) and Metro Broadcast Corporation Limited (Metro). The CA will assess the performance of these licensees during the first six years of their respective licences as well as collecting views of the industry and the general public regarding the broadcasting services through a consultation exercise. The outcome of the review, including the recommendations on adjustments to regulatory requirements on the broadcasting services of the licensees in the remaining period of their licences, will be submitted for consideration by the Chief Executive in Council.
Thanks to the guidance of the Chairman and Members of the CA as well as views and assistance of all the industry stakeholders, OFCA diligently fulfilled its regulatory and facilitating role in the communication sector over the past year. I am confident that OFCA, with the dedicated and professional support of my colleagues, will continue to embrace the challenges ahead and facilitate the provision of innovative and state-of-the-art communications services to better serve the needs of the general public!
