Threat of delay in 3G mobile auction as operators demand further talks on Ofta 'open network' proposal

Hong Kong's mobile telecommunications operators have criticised the Government's intention to force third generation (3G) mobile-phone licence winners to lease between 30 and 50 per cent of their bandwidths to other companies.

The rising concern could delay the awarding of licences as the operators are seeking further talks with the Office of the Telecommunications Authority (Ofta).

In a submission to Legco yesterday, Hutchison Telecom, the SAR's biggest mobile-phone company with 1.6 million subscribers, called the plan 'extremely unfair', and Pacific Century CyberWorks, which owns 40 per cent of HKT Mobile, claimed the new concept had 'major technical' issues that needed to be resolved.

Together with the third and fourth-largest mobile operators - SmarTone Telecommunications and New World Mobility - the companies, which are expected to have the financial muscle to win a licence when the auction takes place, are unhappy that it is the Government making the rules.

They want the market to decide how much spectrum should be released. 'We are of the strong view that [Ofta's] proposal of mandating an 'open network' structure and specifying a percentage will distort the development of 3G in Hong Kong and is potentially damaging to consumer interests,' Hutchison Telecom managing director Agnes Nardi said.

She warned bidders would offer less if they were unfairly forced to share their network with others who did not bear the capital cost and risk involved.