3G mobile phone licence controversy looms for Hong Kong regulators

With the free-to-air television licensing controversy still raging, it could be a case of out of the frying pan into the fire for Greg So Kam-leung and his Commerce and Economic Development Bureau in the coming days.

The Office of the Communications Authority [Ofca] - a subordinate agency under the bureau - said it would announce the final decision over the fate of 3G mobile licences "before mid-November". The decision could affect millions of people's mobile phone and data services and lead to fresh furore.

The timing could not be more sensitive amid the political firestorm over television licences. In fact, the authority has already delayed the decision, originally set for the end of last month.

A spokeswoman for Ofca declined to explain last week why it was postponed. Lawmaker Charles Mok, a member of Legco's panel on information technology and broadcasting, said it couldn't be caused by the TV licensing arrangement fiasco.

"The government did not give a good explanation as to why the announcement was delayed. I wouldn't be surprised if this is a political decision."

Ofca will pick one of three proposals: keep the status quo by renewing all 3G mobile data licences; take back the licences and put them up for auction; or seize an equal share of spectrum from the operators to create a space for a new player.

Any change to the present setup will leave mainland state-owned giant China Mobile as the only potential beneficiary. The government said it was weighing up the options because it wanted to boost competition in the mobile market.