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Three win 4G mobile licences in auction

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China Mobile Hong Kong, Telstra-controlled CSL and a joint venture owned by Hutchison Telecom and PCCW were yesterday's winners in the auction of three licences to provide the next generation of mobile services, according to the Office of the Telecommunications Authority.

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Two other bidders, SmarTone Wireless, backed by property developer Sun Hung Kai Properties, and fixed-line operator Hong Kong Broadband Network, failed to secure licences.

The 2.3-gigahertz and 2.5GHz licences have been on auction since January 12. Market sources had said all five bidders were competing on the 2.5GHz spectrum, which is suitable for use by long-term evolution (LTE) technology, an upgrade of the existing WCDMA platform.

CSL, Hutchison and PCCW already own 2.1GHz 3G licences. The new licences could strengthen their positions by enabling them to provide faster mobile broadband services, with download speeds of more than 100 megabits per second, an industry watcher said.

LTE-compatible products are expected to be commercially affordable no later than 2011.

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China Mobile was the city's only mobile operator running on a 2G system. A 3G licence will allow the company to provide value-added services such as mobile video and mobile broadband.

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