3G spectrum deprival may cost consumers, operators up to HK$15.5B
Consumers to bear big chunk by upgrading services to overcome disruption, survey commissioned by operators says
Consumers will bear the brunt of an estimated HK$15.5 billion in costs imposed by the government's plan to seize and reauction chunks of 3G spectrum now in use, according to a study commissioned by the city's leading mobile network operators.
It estimated data download speeds would deteriorate by an average of 27 per cent for 3G subscribers, worse than the 9 per cent degradation estimated by the regulator, the Office of the Communications Authority (Ofca).
"In the worst case, spectrum deprival could result in a 64 per cent increase in download times," Plum consultant Ken Pearson said yesterday.
The network congestion caused by that loss could set back mobile services in the city "by a few years", he said.
With the release of Plum's findings, the city's four incumbent 3G network operators appear to have taken a last stand against the spectrum reassignment plan before the government announces its decision next month.
SmarTone Telecommunications, CSL, Hutchison Telecommunications Hong Kong and PCCW's HKT have argued that the government must follow long-standing industry practice and automatically renew their 3G spectrum licences on the 2.1-gigahertz band.