Hong Kong’s Communications Authority (CA) having considered requests from the industry, has decided to adjust the performance milestones of the network and service rollout obligations to be met by the assignees of the spectrum in the 26 GHz and 28 GHz bands for the provision of large scale public mobile services.
After the adjustment, assignees will be required to install 20% of the minimum number of radio units required to be installed within the first three years following spectrum assignment, an addition of 30% within four years, and an addition of the remaining 50% within five years.
The adjustment responded to concerns from the industry, which were raised in view of the availability of relevant equipment supply (in particular indoor solutions) and the lead time required for site modification for installation of their radio base stations. Notwithstanding the adjustment, the total minimum number of radio units required to be installed within the first five years following spectrum assignment, set in proportion to the amount of spectrum assigned, remains intact. The performance bond for guaranteeing compliance with the network and service rollout obligations, at $1 million per MHz of spectrum assigned, also remains unchanged. The performance bond will be released to the spectrum assignees by phases on equal portions upon fulfilment of each milestone.
Potential applicants for administrative assignment of spectrum in the 26 GHz and 28 GHz bands for provision of large scale mobile services are advised to take this adjustment of network and service rollout obligations into consideration in submitting their applications on or before the deadline, which has been extended to 22 February 2019 in response to the industry’s request.