The adoption of 5G technology will revolutionise mobile users’ experience with cutting-edge technical capabilities for high speed, high capacity, high reliability, massive connectivity and low latency communications. It is widely expected that 5G will open up vast potential for various commercial and smart city applications such as smart surveillance, time-critical remote operation, telemedicine, and intelligent transportation.
In 2019, the CA assigned a total of 1 980 MHz of radio spectrum in the 3.3 GHz, 3.5 GHz, 4.9 GHz, and 26 GHz and 28 GHz bands in a timely manner for public mobile telecommunications use, including the provision of 5G services. MNOs launched their commercial 5G services in Hong Kong starting from 1 April 2020. As of March 2021, 5G coverage in Hong Kong had reached over 90% of the population, covering major shopping centres and more than 50 MTR stations.
In order to meet the needs of various 5G applications in terms of speed, capacity and coverage, more spectrum in different frequency bands would be released to the market. OFCA provided support to the CA and the Secretary for Commerce and Economic Development (SCED) to launch joint public consultations in the third quarter of 2020, and to promulgate their decisions by way of joint statements on 30 March 2021 on the arrangements for frequency allocation and assignment for the spectrum in the 600 MHz, 700 MHz and 4.9 GHz bands as well as the related spectrum utilisation fee (SUF). Pursuant to the above decisions, a total of 220 MHz of new spectrum in the above three bands will be assigned by way of auction by the end of 2021.
In view of the ample supply of spectrum in the 26 GHz and 28 GHz bands, the CA has adopted an administrative approach for the assignment of spectrum in these bands. Among the 4 100 MHz of spectrum available, 3 700 MHz of spectrum has been set aside as non-shared spectrum for the provision of large scale public mobile services including 5G services while the rest has been set aside as shared spectrum for innovative 5G applications in specified locations. In April 2019, three incumbent MNOs were each assigned 400 MHz of the non-shared spectrum as per their applications. 400 MHz of shared spectrum was also assigned in October 2019 to the Airport Authority for innovative 5G applications in support of the smart airport development.
To fully resolve the issue of the “3.5 GHz restriction zone” in Tai Po, OFCA has been discussing with the concerned satellite operators the relocation of their earth stations for telemetry, tracking and control of the licensed satellites in orbit (TT&C stations) operating at the 3.5 GHz band from Tai Po to the Chung Hom Kok Teleport, so that MNOs can make wider use of all the available 5G bands (including the 3.5 GHz band) in Hong Kong for the provision of 5G services. With OFCA’s assistance, one of the satellite operators has been allocated a land lot for relocation of its TT&C stations from Tai Po to the Chung Hom Kok Teleport, while the other operator is in good progress of discussion with the relevant government departments on the terms of possible land allocation for the same purpose.
Relocation of the TT&C stations involves complex land and technical issues, including site selection, land grants, site formation, construction works and establishment of another set of satellite antennae, as well as the need to ensure that operation of the existing satellites in orbit will not be affected. Considering the lead time and effort required for completing the relocation exercise, it is expected that the “3.5 GHz restriction zone” in Tai Po can be removed before the end of 2024. Meanwhile, MNOs can make use of the other newly allocated frequency bands (e.g. the 4.9 GHz band) or re-farm the existing spectrum (e.g. the 1.8 GHz and 2.1 GHz bands) to provide 5G services in the “3.5 GHz restriction zones”.
OFCA launched the “Subsidy Scheme for Encouraging Early Deployment of 5G” under the Anti-epidemic Fund in May 2020. The scheme aims to encourage various sectors, through the provision of financial incentives, to deploy 5G technology early in fostering innovation and smart city applications, and improving the efficiency of their operations and the quality of their services, which will contribute to enhancing Hong Kong’s overall competitiveness. Under the scheme, each approved project will be subsidised for 50% of the actual cost directly relevant to the deployment of 5G technology, subject to a cap of HK$500,000.
Since its launch, the scheme has been well received with enthusiastic responses. As of 31 August 2021, a total of 108 applications had been approved, covering various sectors including construction, design, education, environmental protection, e-sports and recreation, event and exhibition, logistics, medical and healthcare, property and building facilities management, repair and maintenance, sales and marketing, telecommunications, textiles, and transport.
In order to raise public awareness of the innovative applications enabled by 5G and to showcase the fruitful accomplishment of the scheme, OFCA organised the “Embrace the New 5G Era – Experience-Sharing Seminar on the Applications of 5G Technology” on 29 April 2021 in collaboration with the Hong Kong Productivity Council. In the seminar, five of the grantees under the scheme shared their experience of how the deployment of 5G had improved their efficiency and brought substantive benefits to their business operations. The four MNOs also gave presentations of their 5G applications and solutions, as well as the latest 5G developments. More than 300 participants joined the seminar in person or online.
To further encourage the public and private sectors to deploy 5G technology and foster innovation, the Government has increased funding earmarked for the scheme from $50 million to $100 million, and this would support about 200 projects in total. The deadline for application has been extended to 31 July 2022, and OFCA will continue to provide support for operation of the scheme.
OFCA organised the "Embrace the New 5G Era – Experience-sharing Seminar on the Applications of 5G Technology" on 29 April 2021 in collaboration with the Hong Kong Productivity Council.
In support of the Government’s policy initiative, OFCA is implementing a subsidy scheme with a funding of HK$770 million to provide financial incentives for FNOs to extend their fibre-based networks to 235 villages across nine districts in the New Territories and outlying islands. These villages are located far away from the existing fibre-based backbone networks of FNOs, where villagers can only choose broadband services delivered over copper-based networks at a speed of 10 Mbps or below.
The 235 villages are grouped under six projects (namely, Project 1 to Project 6) for tendering purpose. Selected FNOs are required to roll out fibre-based lead-in connections to the vicinity of the entrances of the villages concerned, and roll out three submarine fibre-based cables connecting Lamma Island from Hong Kong Island (under Project 5), as well as connecting Cheung Chau from Lantau Island and Peng Chau from Lantau Island (under Project 6). To introduce competition, selected FNOs are required to open up at least half of the capacity of the network facilities and submarine fibre-based cables subsidised under the scheme for use by other FNOs for free.
Following the award of all six tender projects under the scheme between November 2019 and May 2020, the selected FNOs have started their implementation work and are extending their fibre-based networks to the villages concerned in phases from 2021 onwards. Not only will the villagers concerned be able to enjoy high-speed fixed broadband services, but MNOs will also be able to make use of the new networks as backhaul for their mobile networks and provide high-speed and innovative mobile services including 5G services to the areas concerned.
For the deployment of 5G services in Hong Kong, MNOs are required to establish a larger number of radio base stations (RBSs) as compared with previous generations of mobile services. To facilitate the expedient and effective rollout of 5G networks, OFCA launched a pilot scheme in March 2019 to open up more than 1 000 suitable government premises for MNOs to install RBSs with a streamlined approval process. OFCA has set up a dedicated team to coordinate with MNOs and relevant government departments on the matters concerned, and issued the “Guidance Notes for Submission of Applications under the Pilot Scheme for Installation of Radio Base Stations at Selected Government Venues” to set out the principles, requirements and streamlined procedures in respect of the applications under the scheme. As of August 2021, 158 applications had been received under the scheme, of which 84 were approved. As a further policy initiative to facilitate the 5G network rollout, OFCA will assist operators under a “demand-led” model to identify and gain access to additional suitable government premises for installation of RBSs.
OFCA has also been coordinating with the relevant government departments to facilitate MNOs’ access to suitable street furniture and public facilities such as public payphone kiosks and sheltered bus stops for the installation of RBSs. We issued the “Guidelines on the Use of Public Payphone Kiosks for the Installation of Radio Base Stations for Provision of Public Mobile Services” and the “Guidelines on the Use of Sheltered Bus Stops for the Installation of Radio Base Stations for Provision of Public Mobile Services” in April and November 2020 respectively to facilitate the industry’s use of the public payphone kiosks and sheltered bus stops for installation of RBSs. OFCA will continue to work with the industry and the relevant government departments in identifying other suitable street furniture and public facilities for installation of RBSs and facilitating technical trials.
In order to ensure efficient operation of 5G networks in the 3.3 GHz and 3.5 GHz bands, having consulted all MNOs, OFCA provided technical support to the CA in issuing the “Guidelines for Setting the Frame Structure of Mobile Networks Operating in Time-Division- Duplex Mode in the 3.3 – 3.6 GHz Band” in April 2020. OFCA will continue to provide technical guidance to the industry as necessary to facilitate effective implementation of 5G networks in Hong Kong.
OFCA keeps up with worldwide development trends in telecommunications and participates in related international/regional meetings of the International Telecommunication Union and Asia-Pacific Telecommunity, among others. During the year, OFCA set up an in-house task force on spectrum supply to collate efforts with a view to conducting early spectrum planning work and ensuring timely release of suitable spectrum to meet the demands of emerging new radiocommunications services and facilitate the ongoing development of public mobile (including 5G) services. Taking into account OFCA's recommendations, the CA issued the Spectrum Release Plan for 2021 – 2023 to inform the industry of the potential supply of spectrum for provision of public mobile and/or other radiocommunications services in the coming three years.
Following the re-allocation of the 3.4 – 3.7 GHz band from fixed satellite service to mobile service from 1 April 2020 for the provision of 5G services, all Satellite Master Antenna Television (SMATV) systems installed in buildings for receiving and distributing satellite television signals to serve occupants should only operate in the 3.7 – 4.2 GHz band. Relevant technical upgrades of SMATV systems should be implemented in order to co-exist with 5G systems operating in the adjacent 3.4 – 3.6 GHz band after 1 April 2020.
To support the upgrade of SMATV systems, the four MNOs using the 3.4 – 3.6 GHz band for provision of 5G services collectively contributed HK$32,000,000 to establish a subsidy scheme for funding the cost of the upgrade by owners of SMATV systems, and the MNOs jointly appointed OFCA to administer the scheme on their behalf. Each successful applicant would be granted with a one-off subsidy of HK$20,000 for upgrading the SMATV system concerned. The subsidy scheme started on 27 November 2019, and was closed on 26 November 2020 after one year of operation. A total of 1 039 applications were successfully processed and HK$20,780,000 was disbursed. Following the completion of the scheme, the remaining fund was returned to the four MNOs.
Since the creation of a new licensing regime by the CA in December 2017 for the provision of Wireless Internet of Things (WIoT) platforms and services using the shared frequency band of 920 – 925 MHz, three WIoT licences have been issued. In addition, the existing MNOs may also make use of the frequency spectrum assigned to them under the Unified Carrier Licence to provide WIoT services by adopting mobile technologies such as Narrowband Internet of Things (IoT) and 5G technologies that enable massive IoT connections. OFCA will continue to support the CA to facilitate the development and competitive supply of WIoT services in Hong Kong.
The Localised Wireless Broadband Service (LWBS) Licence was created in July 2019 to enable the use of 400 MHz of spectrum in the frequency range of 27.95 – 28.35 GHz on a geographically shared basis for the provision of innovative wireless broadband services. Following the issue of the first LWBS Licence in October 2019, OFCA will process any new LWBS licence applications to facilitate the development of innovative 5G and smart city applications at different locations, such as university campuses, industrial estates and technology parks. OFCA will continue to support the CA in updating the licensing regime to cater for market development such as addressing potential demand for the operation of smaller scale 5G private systems by different industries and entities in localised areas.
On 12 January 2021, a new 15-year term of assignment commenced for 50 MHz of spectrum in the 900 MHz band upon expiry of the previous term. As some of the spectrum in the 900 MHz band would change hands upon re-assignment, OFCA convened a technical working group as early as May 2019 comprising representatives of all four MNOs to coordinate the relevant technical arrangements to reconfigure their existing networks and/or roll out additional network infrastructures. Through the efforts of the technical working group, the spectrum in the 900 MHz band was smoothly handed over to the new assignees on 12 January 2021.
The current assignments of 150 MHz of spectrum in the 1800 MHz band will expire in September 2021. While 20 MHz of spectrum in the 1800 MHz band will be re-assigned administratively to each of the four incumbent MNOs, the remaining 70 MHz of spectrum will be re-assigned to the four operators pursuant to the results of the auction in December 2018. Similar to the re-assignment of the spectrum in the 900 MHz band, some of the frequency assignments in the 1800 MHz band will change hands upon commencement of the new 15-year assignment term on 30 September 2021. OFCA will continue to work closely with the industry to ensure a smooth change-over of spectrum in the 1800 MHz band in September 2021.
The current assignment of 90 MHz of spectrum in the 2.5/2.6 GHz bands will expire in March 2024. Separately, the existing assignee of 15 MHz of spectrum in the 850 MHz band, the assignment of which is due to expire in November 2023, obtained CA’s approval for early return of the concerned spectrum and it returned the spectrum in June 2021 after completing the necessary decommissioning work. After the public consultations in the third quarter of 2020, the CA and SCED announced on 30 March 2021 the arrangements for re-assignment of the spectrum in the 850 MHz and 2.5/2.6 GHz bands upon expiry of the existing assignments and the related SUF. OFCA will assist the CA in implementing the decisions to re-assign the 105 MHz of spectrum in the 850 MHz and 2.5/2.6 GHz bands, together with 220 MHz of new spectrum in the 600 MHz, 700 MHz and 4.9 GHz bands, by way of a single auction in the fourth quarter of 2021.
With OFCA’s support, the Commerce and Economic Development Bureau completed the review of the telecommunications regulatory framework under the Telecommunications Ordinance (TO) with a view to embracing the developments of 5G and IoT technologies and facilitating the trade. The Telecommunications (Amendment) Bill 2021, which sought to amend relevant provisions of the TO to implement the review proposals was introduced into the Legislative Council in July 2021. In parallel, OFCA also introduced various streamlined measures with the aim of further facilitating the operation of the industry.
The Government conducted a public consultation on the Real-name Registration Programme for SIM cards (Real-name Registration Programme) from 30 January to 20 March 2021. The Real-name Registration Programme was generally supported by various stakeholders. To implement the Real-name Registration Programme, the Telecommunications (Registration of SIM Cards) Regulation was made under section 37 of the TO with the effective date on 1 September 2021.
OFCA assisted CA in preparing guidelines to provide practical and administrative guidance to licensees supplying telecommunications services through SIM cards in Hong Kong in compliance with the registration requirements under the Registration Regulation. Following OFCA’s consultation with the telecommunications industry, the CA issued the guidelines in August 2021, which took effect upon commencement of the Real-name Registration Programme on 1 September 2021. OFCA will continue to assist the CA to oversee the operation and implementation of the Real-name Registration Programme in accordance with the Registration Regulation and the guidelines.
The Class Licence for Offer of Telecommunications Services (CLOTS) regulates persons who offer telecommunications services to the general public without the establishment of any means of telecommunications. Under the previous version of the Guidelines for Administration of CLOTS (CLOTS Guidelines), only CLOTS licensees with a customer base of 10 000 subscriptions or more were required to register with the CA. With the implementation of the Real-name Registration Programme, OFCA assisted the CA to update the CLOTS Guidelines to require all CLOTS licensees offering relevant SIM services during the course of business, irrespective of the size of their customer base to register their information with the CA before the Registration Regulation came into operation on 1 September 2021. As of 1 September 2021, 21 CLOTS licensees offering relevant SIM services in the course of business had been registered. OFCA will continue to assist the CA to ensure smooth operation of the enhanced registration system for CLOTS.
As an initiative under the Anti-epidemic Fund, the Government engaged the four local MNOs to set up an EAS, enabling the Government to send time-critical messages via the MNOs’ mobile networks to alert the public to take contingency measures as soon as possible during emergency situations, such as unforeseen extreme weather conditions. OFCA formulated technical specifications and test plans for the MNOs to follow in the stages of establishment, testing and implementation of the EAS on their networks. In addition, OFCA issued a regulatory guide for mobile handset suppliers/manufacturers setting out the functional requirements on mobile handsets supplied to Hong Kong such that they would be able to properly receive and display EAS messages. The Government launched the EAS on 26 November 2020. OFCA will continue to monitor MNOs’ operation and maintenance of the EAS, and assist in disseminating the Government’s emergency messages via the EAS as necessary.
OFCA supported the CA to enhance the Services-Based Operators (SBO) licensing regime by extending the period of validity of the SBO Licence from one year to two years to enhance regulatory certainty, streamlining the categories of services authorised under the SBO Licence, and adopting a new licence fee structure to ensure regulatory symmetry between the SBO Licence and other licences. The above enhancements took effect from August 2020. OFCA will continue to assist the CA to ensure smooth operation of the enhanced licensing regime.
OFCA has received applications from some MNOs to seek the CA’s approval to cease their provision of 2G services in the second half of 2021. Under the relevant licence condition, MNOs are required to make proper and appropriate arrangements for the affected customers to the satisfaction of the CA before ceasing to provide a generation of mobile service. OFCA assists the CA in vetting the MNOs’ applications to ensure that the 2G customers of these MNOs would be well taken care of before they cease provision of 2G services.
As part of the ongoing effort to maintain an effective regulatory regime conducive to the business operation of the telecommunications industry, OFCA supported the CA to introduce a number of streamlining measures to keep up with the advancement of telecommunications technologies and help enhance operational efficiency. Among others, in view of the intense competition and price transparency in the market, OFCA supported the CA to remove the licence requirement of submitting tariffs to the CA for filing and streamlined the requirement on publishing tariffs for information to customers. To reduce the industry’s compliance cost while ensuring market transparency and fulfilment of international trade requirements, OFCA assisted the CA to streamline the requirement on filing and publication of interconnection agreements under section 36A of the TO, where only the interconnection agreements involving new types or elements of interconnection would need to be filed with the CA. Furthermore, having reviewed the Billing and Metering Integrity Scheme (BMIS) under the latest market environment and having regard to other regulatory measures already in place which are effective in addressing billing and metering issues, it was decided to abolish the BMIS in January 2021, with a view to eliminating unnecessary regulation and fostering a more business-friendly environment. OFCA will continue to assist the CA to review and streamline regulatory practices to ensure that they remain relevant and in line with the latest market situation.
Public payphone service is a form of basic telephone service which the universal service provider (USP) is required to provide under its universal service obligation (USO). The cost of providing a public payphone service subject to the USO is shared by the fixed and mobile services operators. In view of the diminishing demand for public payphone service in recent years, OFCA supported the CA to conduct a review of the reasonable number of public payphones that should be subject to the USO from 2017 to 2019.
For in-building type public payphones, the CA decided to exclude 515 in-building type public payphones (about 35% of the total number of in-building type public payphones) from the USO. All the excluded in-building type public payphones have been removed by the USP. For kiosk type public payphones, the CA decided to exclude 765 kiosk type public payphones (about 50% of the total number of kiosk type public payphones) from the USO. As of March 2021, over 87% of the excluded kiosk type public payphones had been dismantled.
With the continuous network rollout of FNOs, the Hong Kong community can enjoy nearly ubiquitous coverage of broadband networks deploying various technologies. As of March 2021, there were around 2.9 million residential and commercial fixed-broadband subscriptions, with a household penetration rate of 95%. Broadband services are now available at speeds of up to 10 Gbps. Around 84% of the fixed broadband subscriptions are supported by broadband services with speeds of 100 Mbps or above.
According to a report issued by the Fibre to the Home Council Europe in March 2019, Hong Kong was ranked sixth worldwide in fibre to home/building household penetration among the 64 economies under comparison.
With the support of OFCA’s single-point-of-contact service, several new regional or transcontinental submarine cable systems, as well as four domestic systems are under construction and scheduled to be put into service between 2021 and 2023. OFCA will continue to assist operators in applying for the necessary statutory approvals for the construction and landing of new submarine cable systems in Hong Kong.
In order to reinforce Hong Kong’s role as a regional telecommunications hub and meet the growing demand for external telecommunications facilities in Hong Kong, OFCA will help provide suitable land lots in the Chung Hom Kok Teleport for external telecommunications infrastructure, aiming to further enhance the overall capacity and diversity of Hong Kong’s external telecommunications networks.
Preparatory work for tendering of the relevant land lots in the Chung Hom Kok Teleport is in progress. OFCA is closely working with the relevant bureaux and departments to make the relevant land lots available for the construction of external telecommunications facilities in the coming few years.
The land leases of 42 sites granted to telecommunications operators for establishing and operating telephone exchanges and other telecommunications-related facilities will expire in 2025. To facilitate the Government’s consideration of the way forward for handling these sites upon lease expiry, OFCA commissioned a consultancy study to review the current use of these sites. OFCA will continue to provide support and advice to the Government on the matter from the telecommunications perspective.
Satellite spectrum and orbital positions are scarce natural resources. The use of these resources by communications satellites registered in Hong Kong should comply with the coordination and notification requirements of the International Telecommunication Union (ITU). In this regard, OFCA supports the licensed satellite operators of Hong Kong to coordinate with foreign administrations from time to time, and assists in the processing of licences for the operation of satellites in space orbits. There are now ten satellites in orbit operated by two Hong Kong companies licensed to provide satellite communications services.
OFCA closely monitors international developments in telecommunications standardisation and updates local technical standards in order to meet the needs of the industry and the public. In 2020/21, two new technical standards covering multi-standard RBSs (including 5G base stations) and four revised technical standards covering 5G base stations and user equipment and electrical protection requirements for subscriber telecommunications equipment were approved and issued by the CA after consulting the Radio Spectrum and Technical Standards Advisory Committee.
Qualified local and overseas testing laboratories are now providing testing and certification services for various kinds of telecommunications equipment against technical standards prescribed by the CA. In particular, local laboratories accredited by the CA as local certification bodies (LCBs) offer a full range of telecommunications equipment testing and certification services. In 2020/21, LCBs and foreign certification bodies issued 584 equipment certificates to meet the needs of the telecommunications equipment market.
To ensure that all LCBs providing telecommunications equipment testing and certification services meet the service quality and performance standards required by OFCA, OFCA will continue to closely monitor their performance by regularly conducting documentary checks, plant visits and reviews. So far, all LCBs have been performing up to the requirements set by OFCA.
