Valuing mobile spectrum in Hong Kong
Hong Kong operator commissions Network Strategies to conduct a key economic study
Auckland, New Zealand 28 November 2016
HKT engaged Network Strategies to review the commercial value of 900MHz and 1800MHz spectrum in Hong Kong.
With the expiry of existing spectrum assignments in Hong Kong for 900MHz and 1800MHz spectrum over the period from November 2020 to September 2021, the Communications Authority (CA) proposed to base the spectrum utilisation fee (SUF) for renewal spectrum licences with reference to prices paid in three previous Hong Kong auctions. These reference prices would inform either a fixed price (if the spectrum is not auctioned) or a reserve price (if the spectrum is auctioned).
Our analysis, supported by our Global Awards Database, found that those reference prices did not reflect the structural changes that had more recently occurred in the Hong Kong market. These included market consolidation, spectrum sharing arrangements and potential removal of supply-side inefficiencies, all likely to have a material effect on the true market value. The reference prices were also extremely high in comparison with international benchmarks.
The results of the study were presented in Hong Kong to an audience of stakeholders and other interested parties by Dr Suella Hansen, Director, and Noelle Jones, Principal Consultant, on 28 November 2016.
About Network Strategies
Network Strategies works at the forefront of the telecommunications revolution, delivering advice and insight to operators, manufacturers and governments. From offices in Auckland, London, Melbourne and Wellington, Network Strategies staff provide strategic consultancy to clients throughout the Asia-Pacific region, Europe and North America, offering a complete global outlook on key issues affecting all players in the telecoms sector.
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