PCCW will bid for HK license

date: August 15, 2001

Not to be left out of Hong Kong's highly profitable mobile communication market, Richard Li's Pacific Century CyberWorks-Hong Kong Telecom has confirmed to bid for one of the city's four 3G high speed mobile phone licenses to be issued.

According to a report, CSL, a regional mobile communications company jointly run by PCCW-HKT and Australia's Telstra said PCCW will be making an independent bid and said it is unlikely the company will join forces with other operators in the auction.

The government of the Hong Kong Special Administrative Region will start accepting applications starting in the middle of next month.

Aug. 9 was the last day for Hong Kong operators with second-generation mobile licenses to apply to bid for one of the 3G licenses.

Hong Kong will auction 3G mobile telecoms spectrum on a royalty basis that requires carriers to bid a minimum of 5% of their 3G network turnover. Under terms of the auction, scheduled for mid-September, carriers will be required to pay a minimum of HK$50 million (US$6.4 million) a year for the first five years, with rising annual minimum payments for the following ten.

Today, potential HK 3G operators assured by OFTA head Anthony Wong that fast-growing wireless LAN used in offices and malls will remain local, and not become rivals to 3G networks. Wong says if separate LANs are linked together to effectively become public networks, they will be subject to licensing controls.

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