5G regulation and law in Hong Kong

Hong Kong has embraced 5G, and taken steps to integrate the technology into different sectors. The government and the Office of the Communications Authority (OFCA) are promoting 5G developments, from supplying spectrum, supporting technical trials, and implementing measures to assist with deployment.

On 1 April 2020, three mobile network operators (MNOs) started the commercial launch of 5G and a fourth launched its one on 26 May 2020. The four MNOs are Hong Kong Telecom, China Mobile Hong Kong, 3HK and SmartTone. We understand that the MNOs are using a mix of DSS, NSA and SA for their 5G networks.

On 5 May 2020, OFCA launched the Subsidy Scheme for Encouraging Early Deployment of 5G (Subsidy Scheme) under the second round of the Anti-Epidemic Fund. Under the scheme, the local government will subsidise 50% of the actual cost directly relevant to 5G deployment in an approved project, subject to a cap of HKD 500,000. Public and private entities are eligible to submit applications for projects.

On 4 July 2021, OFCA announced that it would increase funding earmarked for the Subsidy Scheme from HKD 50m to HKD 100m to further encourage the public and private sectors to deploy 5G technology and foster innovation.  OFCA has approved 103 applications since the launch of the Subsidy Scheme covering sectors such as remote mechanical maintenance, remote telemedicine application and 4K/8K live video broadcasting.

As of May 2022, the coverage of 5G networks is over 90%, covering major locations in urban areas and 97 stations in the Mass Transit Railway (MTR) lines. In core business districts, some MNOs have reached 99%, while 5G users have exceeded three million, or around 40% of the population, according to a Legislative Council Paper.

On 2 December 2022, OFCA announced that the application period for the Subsidy Scheme would close on 31 December 2022. As of 2 December 2022, OFCA has approved 160 applications under the Subsidy Scheme covering various industries and sectors. Approved projects include a remote surgery consultation and training system for university teaching hospitals, STEM education system, safety monitoring system for construction sites, smart passenger flow analysis systems, smart security systems, and remote control gantry crane.

Telecom companies are monetising 5G investments, generally pricing 5G consumer mobile service plans at a higher level compared to 4G plans.

No, but the Hong Kong Applied Science & Technology Research Institute in 2019 received the green light from the Hong Kong Transport Department to conduct an autonomous vehicle trial at the Hong Kong Science Park. The objective was to facilitate the system’s awareness monitoring within the 5G networks and to initiate research on related technologies.  

Pursuant to the Subsidy Scheme, three 5G projects have been approved for remote technical support and monitoring solutions for lifts, 3D building information modelling in construction sites and remote e-sports car racing.

There does not appear to be any formal government initiatives or legislation on this issue at present. However, the first licences for the 26 GHz and 28 GHz frequency bands were granted by administrative assignment. Subsequent licences were granted by public auction.

The frequencies are accessible in stadiums, airports and other premises, and there are no specific restrictions.

OFCA has held auctions to award spectrum licences to provide public mobile services.

On 29 November 2019, the Communications Authority announced that spectrum in the 4.9 GHz band was awarded to China Mobile Hong Kong Company Limited and Hong Kong Telecommunications (HKT) Limited for 4840-4880 MHz and 4880-4920 MHz respectively.

On 13 December 2019, the Communications Authority announced that spectrum in the 3.3 GHz band was awarded to Hutchison Telephone Company Limited, Hong Kong Telecommunications (HKT) Limited, SmarTone Mobile Communications Limited and China Mobile Hong Kong Company Limited for 3300 – 3330 MHz, 3330 – 3360 MHz, 3360 – 3380 MHz and 3380 – 3400 MHz respectively.

On 16 January 2020, the Communications Authority announced that spectrum in the 3.5 GHz band was awarded to China Mobile Hong Kong Company Limited, Hong Kong Telecommunications (HKT) Limited, SmarTone Mobile Communications Limited and Hutchison Telephone Company Limited for 3400 – 3460 MHz, 3460 – 3510 MHz, 3510 – 3560 MHz and 3560 – 3600 MHz respectively.

The licences were awarded in an auction, and we understand that OFCA has no specific requirements.

The spectrum licences are subject to conditions including, but not limited to: transfer, international conventions, compliance with local laws, provision of service, customer charter, confidentiality, maintaining records and plans of network, control of interference and obstruction, installation, use of frequencies, safety, indemnities, codes of practice, asset purchase, accounting practices, furnishing information to authorities, tariffs, discounts, billing and metering, emergency services, network location, universal service contribution, insurance, location services, back-up power supply, payment of spectrum utilisation fee, etc.

We understand that the spectrum may be deployed in a technology-neutral manner and used to provide 4G or 5G services. However, licensees must seek approval from OFCA before ceasing to provide a mobile service.

OFCA announced: 

• on 14 October 2019, that 200 MHz of spectrum in the 3.5 GHz band was auctioned off to four mobile network operators at a total spectrum utilisation fee (SUFs) of HKD 1bn.
• on 23 October 2019, that 80 MHz of spectrum in the 4.9 GHz band received successful bids from two mobile network operators at a total SUFs of HKD 240m.
• on 6 November 2019, that 100 MHz of spectrum in the 3.3 GHz band was successfully auctioned to four mobile network operators at a total SUFs of HKD 6.651bn.

The Secretary for Commerce and Economic Development (SCED) is empowered by the Telecommunications Ordinance (Cap. 106) and applicable regulations to prescribe the method for determining the minimum SUF. The exact amount of SUF is determined by auction, but each frequency block is subject to a reserve price. The auction reserve price is specified by SCED closer to the time of the auction.

On 17 November 2022, the Secretary for Commerce and Economic Development and the Communications Authority jointly launched a public consultation on the proposed arrangements for the re-assignment of 20 MHz of spectrum in the 850/900 MHz bands and 90 MHz of spectrum in the 2.3 GHz band for the provision of public mobile services as well as the related spectrum utilisation fee. As spectrum is a scarce public resource and is in high demand, the Communications Authority has proposed that the re-assignment take place through an auction to ensure that it will be put to the most efficient use and benefit the general public.

No 5G-specific rules have been drafted.

We understand that there have been delays to extending network coverage to remote areas due to the high costs of network roll-out and the small number of subscribers. In this regard, the government has launched a subsidy scheme to support and encourage fixed network operators.

There are currently no reported decisions specifically regarding non-compliance with 5G concessions’ obligations.

There are currently no specific regulations on 5G network or spectrum sharing. The Telecommunications Ordinance (Cap. 106) has broad applicability.  

Pursuant to the Radio Spectrum Policy Framework announced in 2007, the Communications Authority will publish a spectrum release plan to inform industry of the potential supply of radio spectrum for the following three years. The spectrum release plans are updated every year on a rolling basis.

Yes. We understand that in March 2020, Ericsson and SmarTone, announced a five-year contract to deploy 5G.

No information is currently available about granting competitors access to new 5G networks.

The Legislative Council has noted the increased risk of cyberattacks and data privacy breaches due to the technological design of 5G. There is neither a standalone cyber-security law nor a mandatory notification mechanism for personal data breaches. Information security issues such as computer and internet-related crimes are currently treated under criminal laws.