Hong Kong's Secretary for Commerce and Economic Development (SCED) and Communications Authority (CA) have launched a public consultation on the allocation of 3.3-GHz and 4.9-GHz 5G spectrum.
The government plans to auction 100 MHz of 4.9-GHz spectrum for territory-wide use and 100 MHz of 3.3-GHz spectrum for indoor use.
Spectrum in the two bands will form part of the 4,500 MHz of new spectrum the CA plans to release in 2019 and 2020 to support the development of 5G services.
The CA has proposed to hold a separate auction for each band, and to set spectrum utilization fees based on the full market value of the spectrum, as determined by the outcome of the auctions.
Meanwhile the SCED has proposed that winners be given the option to pay the spectrum utilization fees upfront or in annual installments.
“The 4.9 GHz band has the advantage of being able to support deployment of 5G services in any locations in Hong Kong, whereas the 3.3 GHz band can be used for enhancing 5G indoor coverage in conjunction with spectrum in other frequency bands," a CA spokesperson said in a statement.
The HKSAR government had reportedly been considering allocating 5G spectrum at no charge if demand is below 75% of supply, but the CA's proposal could indicate a change in direction.
Operator HKT has also been pushing the CA to expedite the release of mobile spectrum, warning that Hong Kong risks falling behind in 5G deployments.
The consultation will run until September 26, and the CA plans to hold the auctions some time around mid next year.