The territory's six PCS (personal communications service) licensees enjoyed a keyhole view of each other's network development plans last week when the Office of the Telecommunications Authority (Ofta) released licence conditions and timetables.
The documents run to more than 150 pages and include performance targets for the roll-out of networks and maximum handset prices and tariffs. The operators have to lodge unspecified performance bonds and face multi-million-dollar penalties for missing targets or overcharging.
The handset and tariff levels laid out in the licences are maximums and, as they are based on the proposals made by the licensees early last year, the prices ultimately offered to the public are likely to be lower.
The year-long delay in gaining approval for the licences from the Joint Liaison Group will also affect roll-out plans. The operators have to meet their deadlines for providing service, which range from four months from September 30 (the date licences were granted) in the case of Peoples Phone, to 10 months for Pacific Link.
They are likely to launch with more than the minimum number of cell sites to ensure their networks start off on a competitive basis.
Dylan Tinker, regional telecommunications analyst for Jardine Fleming, said: 'Hongkong Telecom CSL and others have put up so many base stations, the PCS operators don't want to be seen as secondary quality. They want to come in with what is seen as quality service.' Peoples Phone is committed to having its network running by the end of January with 40 base stations.
