The advent of 5G technology opens up vast potential for various commercial and smart city applications such as internet of things, remote operation, telemedicine and intelligent transportation. With the extensive availability of 5G in Hong Kong, mobile users are now enjoying vastly improved services with high speed, high capacity, high reliability, massive connectivity and low latency communications.
As of end March 2024, CA had assigned a total of 2 130 MHz of radio spectrum in various low, mid and high frequency bands, namely 700 MHz, 3.3 GHz, 3.5 GHz, 4.9 GHz, and 26 GHz and 28 GHz for public mobile telecommunications use, including the provision of 5G services. Since the launch of commercial 5G services on 1 April 2020, as of end March 2024, 5G coverage in Hong Kong has exceeded 90% with all the populated districts, bustling shopping malls and mass transit railway stations covered.
In order to meet the growing needs of innovative 5G applications in terms of speed, capacity and coverage, OFCA supported CA’s work to release additional spectrum in different frequency bands to the market. OFCA relocated the relevant users of fixed links and outside broadcasting links operating in the 6/7 GHz band to other frequency bands with a view to making available 400 MHz of spectrum in the 6/7 GHz band for public mobile services. The 6/7 GHz band may also be suitable for 6G deployment, making Hong Kong a first mover in releasing relevant frequency band for 6G development. OFCA also administratively assigned another 1 200 MHz of the non-shared spectrum in the 26/28 GHz band for the provision of 5G or more advanced mobile services in August 2024.
Upon expiry of the previous assignment in March 2024, 90 MHz of spectrum in the 2.5/2.6 GHz band was re-assigned to three MNOs following an auction held in October 2021, with the result that some of the frequency assignments in the 2.5/2.6 GHz band would be changing hands in the new 15-year term of assignments. OFCA convened a meeting of the technical working group comprising representatives of the three MNOs concerned in September 2022 to coordinate the relevant technical arrangements. Through the concerted efforts of the technical working group, 90 MHz of spectrum in the 2.5/2.6 GHz band was seamlessly handed over to the new assignees in March 2024.
The current assignments of 20 MHz of spectrum in the 850/900 MHz band and 90 MHz of spectrum in the 2.3 GHz band will expire in May 2026 and March 2027 respectively. It is planned that the relevant spectrum will be used for public mobile services. With OFCA’s support, CA and the Secretary for Commerce and Economic Development (SCED) conducted a joint public consultation in November 2022 and issued a joint statement in May 2023 about the re-assignment arrangements as well as the related spectrum utilization fee (SUF). Pursuant to the above decision, the spectrum concerned will be re-assigned by way of auction in November 2024.
The spectrum in the 6/7 GHz band is the largest block of the mid-band spectrum that can be made available for mobile services. With OFCA’s support, CA and SCED launched a joint public consultation in July 2023, and promulgated the decisions through a joint statement issued in March 2024 about the assignment arrangements as well as the related SUF. Pursuant to the above decision, OFCA will conduct an auction for a total of 400 MHz of new spectrum in the 6/7 GHz band in November 2024.
Whilst 90 MHz of spectrum in the 2.5/2.6 GHz band was re-assigned to three MNOs in March 2024 for another term of 15 years, the current assignments of the remaining 50 MHz of spectrum in the same band will expire in May 2028. OFCA provided support to CA and SCED for conducting a public consultation on the re-assignment arrangements and the related SUF in September 2024.
In support of the Government’s policy initiative to improve network coverage in remote areas, OFCA continued to implement the subsidy scheme with a funding of HK$770 million to provide financial incentives for FNOs to extend fibre-based networks to 235 villages across nine districts in the New Territories and outlying islands in phases from 2021 to 2026, benefitting about 110 000 villagers. As these villages are located far away from the existing fibre-based backbone networks of FNOs, villagers could only choose broadband services delivered over copper-based networks at a speed of no more than 10 Mbps before implementation of the subsidy scheme.
The 235 villages were grouped under six tender projects (namely, Project 1 to Project 6) which were approved under the subsidy scheme between November 2019 and May 2020. Selected FNOs were entrusted to roll out fibre-based lead-in connections to the villages concerned, and lay three submarine fibre-based cables connecting Lamma Island to Hong Kong Island (under Project 5), as well as Cheung Chau to Lantau Island and Peng Chau to Lantau Island (under Project 6) respectively. To introduce competition, the 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 subsidy scheme for use by other FNOs for free.
By far, the selected FNOs have already extended their fibre-based networks to 200 villages and completed the rollout of three submarine fibre cables connecting Lamma Island, Cheung Chau and Peng Chau. OFCA will continue to supervise the implementation of the subsidy scheme and it is expected that fibre-based networks will be extended to all villages covered by the subsidy scheme by 2026.
With the extension of the fibre-based networks, not only will the villagers concerned be able to enjoy high-speed fixed broadband services, 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.
The 2022 Policy Address announced that the Government will further expand the 5G network by amending legislation to ensure availability of appropriate space in new buildings for installation of mobile communications facilities. To take forward the initiative, OFCA assisted CEDB in formulating the legislative proposal to ensure availability of reserved space in and access to new buildings for installation of mobile communications facilities by MNOs. Industry consultation sessions were conducted from February to April 2023 to seek views from stakeholders (including the developers, telecommunications trade, professional bodies, etc.) on the proposal. A total of 13 submissions were received and all were supportive of the proposal.
The Telecommunications (Amendment) Bill 2023 was introduced into LegCo in December 2023 and passed by LegCo on 21 February 2024. Under the Telecommunications (Amendment) Ordinance 2024, MNOs may be authorised by CA for free access to reserved space in specified buildings (including new and redeveloped commercial, industrial, residential and hotel buildings) to install and maintain mobile communications facilities. In addition, new government buildings and public housing will also follow the arrangements for installing mobile communications facilities. The arrangement will help further expand the mobile network coverage and capacity in Hong Kong. The relevant amendment took effect on 1 October 2024, of which MNOs authorised by CA can install and maintain mobile communications facilities in the reserved space in specified buildings with building plans approved on or after 1 April 2025.
In the meantime, OFCA assisted CA in developing the “Code of Practice for the Provision of Mobile Access Facilities in Specified Buildings for the Provision of Public Mobile Radiocommunications Services”, which sets out the specific requirements for developers and MNOs regarding the installation of mobile communications facilities in specified buildings. OFCA is also liaising with other relevant government departments in updating the respective administrative guidelines to ensure timely implementation of the new requirements.
Owing to the characteristics of 5G, more RBSs are required to be installed to provide reasonable 5G network coverage. To facilitate the expedient and effective rollout of 5G network, OFCA has launched a pilot scheme since March 2019 to open up more than 1 500 suitable government premises for MNOs to install RBSs. OFCA has set up a dedicated team to coordinate with MNOs and relevant government departments to streamline the application process under the scheme. OFCA has accordingly issued the “Guidance Notes for Submission of Applications under the Pilot Scheme for Installation of Radio Base Stations at Selected Government Venues”, setting out the principles, requirements and streamlined procedures for application. As an incentive for MNOs, a nominal rental of HK$1 per year is charged for each RBS installed. As of end August 2024, 246 applications were received under the scheme, of which 134 were approved.
Apart from government premises, the Government has established mechanisms to facilitate MNOs’ installation of RBSs at sheltered bus stops and public payphone kiosks. To facilitate MNOs’ access to these facilities, OFCA issued the “Guidelines on the Use of Public Payphone Kiosks for the Installation of Radio Base Stations for Provision of Public Mobile Services” and “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. As of end August 2024, 12 applications for installation of RBS at sheltered bus stop were approved. Moreover, the Government will reserve available space and loading capacity at multi-functional smart lampposts in various districts for RBS installation to further expand the 5G network coverage. The four local MNOs have submitted applications to CA respectively for using the first batch of 5G RBSs installed at the smart lampposts, and the vetting of the applications was completed in April 2024. OFCA will continue to work with the industry and relevant government departments in identifying suitable public facilities for installation of RBSs and facilitating technical trials.
In support of the 2023-24 Budget initiative, OFCA assisted CEDB in amending the legislation to incentivise investment in mobile communications infrastructure through tax deduction on the SUF payable by MNOs on spectrum acquired through auctions in future. The Inland Revenue (Amendment) (Tax Deductions for Spectrum Utilization Fees) Ordinance 2024 took effect on 19 January 2024. The SUF payable by MNOs for the radio spectrum to be acquired will be fully deductible from profits tax and the tax deduction will spread over the spectrum assignment term. The tax deduction aims to encourage MNOs to invest in mobile communications services through bidding for radio spectrum.
The 2023 Policy Address announced that the Government will coordinate proactively with relevant organisations to enhance 5G network capacity at major public event venues. To implement the initiative, OFCA is actively coordinating with relevant stakeholders including government departments, venue managers and MNOs to install RBSs at major public event venues, including Central Harbourfront Event Space (CHES), Hong Kong Coliseum (HKC), Hong Kong Convention and Exhibition Centre (HKCEC), AsiaWorld-Expo (AWE), Victoria Park (VP) and Kai Tak Sports Park (KTSP). Since April 2024, MNOs have already activated 5G RBSs and provided 5G services at HKCEC, AWE and VP, whereas the installation of 5G RBSs at CHES, HKC and KTSP are in progress and 5G services would be in place gradually. OFCA will continue to coordinate with relevant organisations to set up mobile communications facilities at major event venues to ensure that the public and event participants can enjoy quality communications services and provide high-level telecommunications infrastructure for reinforcing Hong Kong’s position as an international hub for mega events.
The 2023 Policy Address announced that the Government will enhance the coverage of 5G networks by expediting the expansion of mobile network infrastructure in rural and remote areas through subsidies. To take forward the initiative, OFCA has commenced the preparatory work for the implementation of the subsidy scheme, including liaison with MNOs about the mobile network coverage in rural and remote areas and technical matters in relation to the installation of RBSs. An industry consultation on the proposed framework was completed in August 2024. We are consulting local stakeholders and finalising details of the proposal taking into account the views received. We plan to seek funding approval from LegCo in 2025 for implementation of the subsidy scheme.
Following the reallocation of the 3.4–3.6 GHz (3.5 GHz) band from fixed satellite service to mobile service with effect from 1 April 2020, two restriction zones in Tai Po and Stanley have been delineated to enable the coexistence of 5G services and the earth stations for telemetry, tracking and control of the licensed satellites in orbit (TT&C stations) operating in the same and adjacent bands. In response to the industry request and with input from the stakeholders, OFCA assisted CA in issuing the “Guidelines for Installation of Radio Base Stations Operating in the 3.4–3.6 GHz Band within the Restriction Zones Delineated by the Communications Authority” such that MNOs would be able to deploy 3.5 GHz RBSs within the restriction zones in a controlled manner.
To resolve the issue, OFCA has proactively liaised with the concerned satellite operators regarding the relocation of their TT&C stations operating in the 3.5 GHz band from Tai Po to the Chung Hom Kok Teleport (the 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 satellite operator has been granted a land lot for relocation of its TT&C stations in the 3.5 GHz band from Tai Po to the Teleport, while the other satellite operator has undertaken to install satellite band-pass filters at its satellite facilities to prevent radio interference.
Relocation of the TT&C stations involves complex land and technical issues, including site selection, land grants, site formation, construction work and establishment of additional satellite antennae, as well as ensuring that operation of the existing satellites in orbit will not be affected. Considering the lead time and effort required for completing the relocation exercise, the target is to remove the “3.5 GHz restriction zone” in Tai Po by end of October 2024. Pending completion of relocation, MNOs would make use of other 5G bands (e.g. the 700 MHz and 4.9 GHz bands) or re-farm their existing spectrum (e.g. the 850 MHz and 2.1 GHz bands) to provide 5G services in the restriction zones.
OFCA has kept up with worldwide development trends in telecommunications and participates in related international/regional meetings of the ITU, Asia-Pacific Telecommunity (APT), and other organisations. OFCA has also maintained close dialogue with industry players in Hong Kong to keep abreast of the development of the telecommunications industry. With OFCA’s recommendations, CA issued the Spectrum Release Plan for 2024–2026 in February 2024 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. In parallel, OFCA has been closely monitoring the development of new frequency bands for various radiocommunications services, including mobile services, arising from the outcomes of the World Radiocommunication Conference of ITU convened in late 2023. Taking note of the market development, OFCA will assist CA in providing timely supply of additional spectrum to the industry.
The Emergency Alert System (EAS) was set up by four local MNOs, enabling the Government to send time-critical messages via their mobile networks to alert the public to take contingency measures as soon as possible during emergency situations. OFCA will work with the MNOs in streamlining the operation and offer necessary assistance to different bureaux/departments which intend to disseminate emergency messages via the EAS.
Pursuant to the Telecommunications (Registration of SIM Cards) Regulation (Cap. 106AI) (the Regulation), the Real-name Registration Programme for SIM Cards (RNR Programme) has been fully implemented since February 2023, requiring that all SIM cards issued and used locally (including SIM service plans and pre-paid SIM cards) must have completed real-name registration before service activation. CA has issued the “Guidelines on Implementation of Real-name Registration for SIM Cards” (the RNR Guidelines) to provide guidance and detailed requirements of the RNR Programme for telecommunications service providers.
Since the full implementation of the RNR Programme, OFCA has been carrying out a series of ongoing monitoring and enforcement actions to ensure that telecommunications service providers and other relevant parties comply with the requirements of the Regulation and the RNR Guidelines. OFCA has been working continuously with telecommunications service providers, and reminding them to enhance their registration platforms and strengthen inspection of their registration records. Among others, they have adopted “iAM Smart” as the default registration method for Hong Kong identity card holders in completing real-name registration of pre-paid SIM cards starting from 1 October 2024.
OFCA will continue to work with telecommunications service providers to conduct sample checks on the registration information to safeguard the integrity of the registration records. OFCA will also continue to carry out enforcement and monitoring actions, including verification of telecommunications service providers’ registration platforms, ad hoc market surveillances and inspections of registration records, and continue the publicity efforts to enhance public awareness of the requirements of the RNR Programme.
OFCA has been working closely with the telecommunications industry and the Police to devise and implement technical measures against fraudulent calls and messages delivered through telecommunications networks. In 2023/24, the telecommunications industry implemented measures to block suspicious +852 calls incoming from outside Hong Kong as well as to send voice or text alerts to mobile service users before receiving +852 calls incoming from outside Hong Kong. As of end August 2024, telecommunications service providers have blocked more than 4.2 million suspicious calls starting with “+852” and mobile service providers have issued more than 26.5 million voice or text alerts.
Besides, OFCA formulated a code of practice, requiring mobile service providers and fixed service providers to monitor calls originating from their networks since end June 2023 and end December 2023 respectively. Should call patterns of suspected phone deception be identified, the services of the relevant telephone numbers would be suspended. As of end August 2024, about 1.13 million local telephone numbers were suspended in accordance with the code of practice. OFCA will continue to work with the telecommunications industry and the Police to monitor and enhance the effectiveness of the aforementioned measures.
To help the public verify the authenticity of SMS senders, OFCA worked with the telecommunications industry, the banking industry and the Police to establish the SMS Sender Registration Scheme. Under the scheme, registered senders should use Registered SMS Sender IDs with the prefix “#” to send SMS messages to local subscribers of mobile services.
All other SMS messages with sender IDs containing “#” but not sent by Registered Senders would be blocked by the telecommunications networks. The scheme has been implemented since 28 December 2023, and was open for application by all sectors starting from February 2024. Major telecommunications service providers, banks, government departments, statutory bodies, companies and organisations from various sectors (e.g. public utilities, retail, education, insurance and credit finance, etc.) have joined the scheme progressively. As of end August 2024, more than 320 companies and organisations have participated in the scheme. OFCA would continue to publicise the scheme and encourage more industries and organisations to join the scheme.
With the support of OFCA and other government departments, PCCW-HKT Telephone Limited and Hong Kong Telecommunications (HKT) Limited (HKT), a major operator of public payphone service, commenced a trial of smart payphone kiosks (Smart Kiosks) in March 2023 with the aim to revitalising traditional kiosk-type public payphones. HKT installed two trial Smart Kiosks in Causeway Bay and Central in April and May 2023 respectively. Apart from public payphone and free Wi-Fi services, the Smart Kiosks also provide information services such as transportation and public facilities available in the vicinity, contact information of social welfare services, tips for caregivers, and news and weather information, as well as a USB charging port provided to the public free of charge. OFCA will continue to provide coordination support to HKT.
Along with the ongoing network expansion of FNOs, Hong Kong has a high level of penetration of broadband services. As of end March 2024, there were around 3 million residential and commercial fixed-broadband subscriptions, with the household penetration rate exceeding 97%, among which 85% of the households are enjoying fixed-broadband services via optical fibre.
According to a report issued by the Fibre to the Home Council Europe in March 2024, among the 83 economies under comparison, Hong Kong was ranked third worldwide in fibre to home/building household penetration.
To promote the awareness of the public including building owners and building management offices (BMOs) on the merits of having optical fibre networks in their buildings, OFCA has implemented the Labelling Scheme for Buildings with Optical Fibre Access since November 2022. Under the scheme, OFCA compiles and maintains a register of buildings connected with optical fibre networks based on the information provided by FNOs as well as building owners, BMOs and property developers. The register, in the form of a geographical information system, is open to public inspection on OFCA’s website. The relevant building owners or BMOs are encouraged to display the designated label in their buildings indicating the availability of optical fibre networks there. As of end March 2024, more than 70 500 buildings were registered under the scheme, covering 92% of living quarters in Hong Kong.
To provide the public with more stable and high-speed mobile communications services, OFCA launched the Labelling Scheme for Buildings with 5G Indoor Coverage in May 2024 which aims at encouraging collaboration between MNOs and building managers to install 5G communications facilities and enhance mobile network coverage in the indoor common areas of buildings such as lobbies, lifts, carparks, shopping centres and basements. Under the scheme, a designated label will be posted at locations with 5G indoor base stations installed, as a certification of 5G indoor coverage at the vicinity.
OFCA has been facilitating the operators to seek statutory approvals of laying and landing of new submarine cable systems in Hong Kong from relevant government departments. With the support of OFCA’s single-point-of-contact service, several new regional or transcontinental submarine cable systems are under construction and scheduled to be put into service between 2024 and 2029.
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. OFCA has been providing support and technical advice to the Government on the way forward from the telecommunications perspective.
Since its implementation on 1 January 2018, the charging scheme for the SUF for spectrum assigned administratively (SUF Charging Scheme) has encouraged spectrum users to use the spectrum assigned to them in an efficient manner and return excessive spectrum to CA. Over 200 links in the designated six frequency bands subject to the SUF have been returned to CA since the introduction of the SUF Charging Scheme. As the SUF Charging Scheme is subject to review every five years, a review was conducted in 2023 and an industry consultation had been conducted. Having considered the findings of the review and the views of the stakeholders, CA and SCED promulgated their decisions in December 2023. The decision of CA is to maintain the adoption of the existing criteria to identify the frequency bands that are subject to SUF and that the prevailing six designated frequency bands should continue to be subject to SUF. Meanwhile, SCED decided to maintain the prevailing SUF levels.
In alignment with the Government’s policy to improve regulatory measures with a view to enhancing the Hong Kong’s competitiveness, OFCA supported CA to enhance the licensing regime of four types of licences, namely Ship Station Licence, Broadcast Radio Relay Station Licence, Hotel Television (Transmission) Licence and Satellite Master Antenna Television Licence, by extending the period of validity of the licences from one year to two years to enhance regulatory certainty for the licensees. The enhancements took effect from March 2024. OFCA will continue to assist CA in overseeing the operation of the enhanced licensing regime.
Since satellite spectrum and orbital positions are scarce and invaluable resources, their use by communications satellites should comply with the coordination and notification requirements of ITU. OFCA supports local licensed satellite operators to coordinate with foreign administrations and assists in the processing of licences for the operation of satellites in space orbits. As of end March 2024, two satellite operators were licensed in Hong Kong to track, control and conduct telemetry for a total of nine geostationary satellites in orbit.
OFCA stays abreast of international developments in telecommunications standardisation and updates local technical standards in order to meet the needs of the industry and the public. In 2023/24, two new technical standards and three revised technical standards governing RBSs, repeaters and user equipment for public mobile services, including 5G services, were approved and issued by CA.
Qualified local and overseas testing laboratories are now providing testing and certification services for different kinds of telecommunications equipment in accordance with technical standards prescribed by CA. In particular, a full range of telecommunications equipment testing and certification services are offered by local laboratories accredited by CA as local certification bodies (LCBs). In 2023/24, LCBs and foreign certification bodies issued 545 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 required service quality and performance standards, OFCA will continue to closely monitor their performance by conducting regular documentary checks, on-site visits and reviews. So far, all LCBs have complied with the requirements set by OFCA.