SmarTone Asks For Extension On 3G Auction Consultation
January 6, 2001
Tech Center
SmarTone Asks For Extension
On 3G Auction Consultation
Dow Jones Newswires
HONG KONG -- SmarTone Telecommunications Holdings called on Hong Kong's telecommunications regulator to extend the consultation period for determining how the government will hand out third generation, or 3G, mobile-phone licenses later this year.
SmarTone issued a statement Friday following an industry workshop with the Hong Kong Office of the Telecommunications Authority.
1Hong Kong Prepares to Auction Four Mobile Telecom Licenses (Oct. 4)
The biggest telecommunications operators, which are expected to bid for four 3G licenses up for auction, have criticized the telecommunications regulator's proposal to require future 3G license holders to open up their networks to other service providers in a bid to encourage competition.
In its statement, SmarTone proposed that OFTA require that network operators open a maximum of 20% of the network to non-affiliated service providers, the smaller telecommunications operators who don't win a license.
Hong Kong currently has six mobile phone operators.
SmarTone said opening 30% to 50% of the network could result in one single smaller operator getting an aggregate capacity that is larger than the license holder's.
SmarTone said it also disagrees with other OFTA proposals and suggested that the process be left open to commercial forces with minimum intervention from regulators.
SmarTone said it suggests OFTA "take an additional three to four weeks to address others issue in the paper with the industry."
OFTA aims to finalize a licensing framework for the issuance of 3G licenses this month and is expected to issue the licenses in the second quarter of the year. South Korea and Singapore both recently announced they will delay their 3G auctions.
Other large operators which are expected to bid include New World Mobility, which is majority owned by New World Development Co., and HKT Mobile, which is 40% owned by Pacific Century Cyberworks and Hutchison Telecom, a unit of Hutchison Whampoa Ltd.
The two other smaller companies operating mobile phone networks in Hong Kong are Sunday Communications Ltd. and People's Telephone Co.
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