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 assisting with deployment.

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

Since its launch, the coverage of some MNO’s 5G networks in core business districts in urban areas has reached 99%. They cover over 90% of the population and all 98 stations in the Mass Transit Railway (MTR) lines according to the OFCA. A report published by an international survey organisation in July 2023, Hong Kong ranked first in Asia Pacific and European regions in terms of 5G availability.

On 31 December 2022, OFCA finally closed the application period for the Subsidy Scheme for Encouraging Early Deployment of 5G, after extending the deadline several times in light of  enthusiastic response. As of 2 December 2022, OFCA had approved and administered 160 projects under the Subsidy Scheme covering 50% of the actual cost directly relevant to 5G deployment in an approved project, subject to a cap of HKD 500,000. (USD 64,190) Public and private entities were eligible to submit applications for projects. Approved projects include 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.

On 30 May 2024, OFCA launched the Labelling Scheme for Buildings with 5G Indoor Coverage to encourage MNOs to enhance 5G network coverage inside buildingsb by collaborating with building managers to install the relevant infrastructure. Once installed, a building can post a designated label which certifies its high-speed and high capacity 5G network services.

The Hong Kong Chief Executive’s 2024 Policy Address further highlighted intentions to finalise the Subsidy Scheme to Extend 5G Coverage in Rural and Remote Areas, which covers 235 villages across nine districts in the New Territories and outlying islands.

Deployment of 5G SA networks

The roll-out of SA in Hong Kong began in 2020, with Hong Kong Telecom, CSL and China Mobile Hong Kong developing SA capabilities. CSL, a subsidiary of Hong Kong Telecom, was the first in Hong Kong to use 5G SA together with mmWave technology, notably to provide Hong Kong’s 2023 National Day Fireworks Display.

In the meantime, China Mobile Hong Kong has become the first MNO to launch a 5G SA international roaming service in mainland China in November 2024, in collaboration with China Mobile Group, which operates over 2.3 million 5G base stations and has a network based on the advanced 5G SA model (independent network architecture, lower latency and enhanced encryption and security mechanisms).

There do 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 in this regard. On 9 May 2024, the OFCA announced that MNOs had made good progress with setting up 5G radio base stations at public event venues across Hong Kong, including Hong Kong Convention and Exhibition Centre and AsiaWorld-Expo. It was further announced that the OFCA will continue to work with government departments and MNOs to install further mobile infrastructures to enhance 5G network capacity at more major public event venues.

On 21 February 2024, the Telecommunications (Amendment) Bill 2023 was passed to provide a legal basis for the Communications Authority (CA) to grant authorisation to mobile network operators to gain access to reserved space in specified new buildings (including new and redeveloped commercial, industrial, residential and hotel buildings) for installation and maintenance of mobile communications facilities, with a view to strengthening 5G infrastructure in Hong Kong. The amendments came into operation on 1 October 2024.

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

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

On 13 December 2019, OFCA announced that spectrum in the 3.3 GHz band was awarded to Hutchison Telephone Company Limited, HKT, 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, OFCA announced that spectrum in the 3.5 GHz band was awarded to China Mobile Hong Kong Company Limited, HKT, SmarTone Mobile Communications Limited and Hutchison Telephone Company Limited for 3400 – 3460 MHz, 3460 – 3510 MHz, 3510 – 3560 MHz and 3560 – 3600 MHz respectively.

On 27 October 2021, OFCA announced that spectrum in the 600 MHz, 700 MHz, 850 MHz, 2.5/2.6 GHz and 4.9 GHz bands was awarded to Hutchison Telephone Company Limited, HKT, SmarTone Mobile Communications Limited and China Mobile Hong Kong Company Limited.

On 20 November 2024, OFCA announced that the auction of radio spectrum in the 850/900 MHz and 2.3 GHz bands was concluded. A total of 110 MHz of spectrum in 11 frequency blocks was awarded to Hutchison Telephone Company Limited, HKT, SmarTone Mobile Communications Limited and China Mobile Hong Kong Company Limited.

On 29 November 2024, OFCA announced that spectrum in the 6/7 GHz band was awarded to China Mobile Hong Kong Company Limited, Hong Kong Telecommunications (HKT) Limited and SmarTone Mobile Communications Limited for 6570 – 6670 MHz, 6670 – 6770 MHz and 6925 – 7025 MHz respectively.

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

The following documentation is required from each provisional successful bidder:

1. a Letter of Credit to guarantee payment of the Spectrum Utilisation Fee (SUF); and
2. submission of performance bonds, where applicable, to ensure compliance with the network and service roll-out- requirement before the actual frequency assignments take effect.

To prevent over-concentration of spectrum holdings by a single spectrum assignee, the CA has set caps on the amount of spectrum that can be acquired by each assignee in the respective bands, which are 10 MHz for the 850/900 MHz band, 50 MHz for the 2.3 GHz band, and 140 MHz for the 6/7 GHz band.

Most MNOs are licensed under Unified Carrier Licenses.  Key terms of the licenses (i.e. general conditions) include:

1. Transfer: The licence or any rights under it can only be transferred with the prior written consent of the Authority, considering factors like market structure and the transferee's competence (clause 2).
2. Customer charter: the licensee must prepare a customer charter outlining minimum service standards (clause 6).
3. Confidentiality: customer information must not be disclosed without consent, except for crime prevention or as authorised by law (clause 7).
4. Control of interference and obstruction: The licensee must ensure that its network does not cause harmful interference or obstruction to other lawful telecommunications service (clause 9).
5. Use of spectrum: the licensee can only operate radiocommunications installations on frequencies assigned by the CA, and these must comply with the CA’s technical standards and not cause interference. Changes to installations/ their locations require prior written approval from the CA (clause 12).
6. Prohibition of claims against Government: The licensee cannot claim against the Government for network disturbances caused by Government works (clause 15).
7. Indemnity: the licensee must indemnify the Government against losses related to the licensee's activities (clause 16).

Spectrum licences are subject to special conditions including, but not limited to.  and .

1. Purchase of assets: the Government may elect to take over the licensee’s undertaking and assets if it is in a dominant position in the market or subject to the universal service obligation and specific circumstances occur (clause 2).
2. Interconnection: the licensee must interconnect its network with other unified carriers and ensure any-to-any connectivity (clause 3).
3. Withdrawal and return of frequencies: the CA can withdraw frequencies if they are not used efficiently or in exceptional circumstances. The licensee can also return frequencies with the CA’s consent (clause 21).
4. Universal Service Contribution: the licensee may be required to contribute to pay a fee to ensure basic services are available to all customers (clause 22).
5. Testing and monitoring: the licensee must allow the CA to test and monitor its services to ensure compliance with the licence conditions (clause 51).
6. Emergency alert system: the licensee must establish and maintain an emergency alert system to disseminate public announcements during emergencies (clause 52).
7. Fraudulent use: the licensee must block calls or messages and suspend services suspected of fraudulent use as directed by the CA or law enforcement agencies (clause 53).

Other terms and conditions include international conventions, compliance with local laws, provision of service, maintaining records and plans of network, safety, codes of practice, accounting practices, furnishing information to authorities, tariffs, discounts, billing and metering, emergency services, network location, 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 OFCA approval before ceasing to provide a mobile service.

Operators have the option of either paying the full SUF in advance or by annual instalments. Amendments to the Inland Revenue Ordinance (Cap. 112) came into effect in January 2024 which enable mobile network operators to enjoy full tax deductions for SUFs payable on radio spectrum acquired.

OFCA announced:

1. on 14 October 2019, that 200 MHz of spectrum in the 3.5 GHz band was successfully auctioned off to four mobile network operators at total SUFs of HKD 1 bn (USD 128.58m).
2. on 23 October 2019, that 80 MHz of spectrum in the 4.9 GHz band received successful bids from two mobile network operators at total SUFs of HKD 240m  (USD 32m).
3. on 6 November 2019, that 100 MHz of spectrum in the 3.3 GHz band was successfully auctioned to four mobile network operators at total SUFs of HKD 665.1m (USD 85.5m)..
4. on 27 October 2021, OFCA announced that 255 MHz of spectrum in the 600 MHz, 700 MHz, 850 MHz, 2.5/2.6 GHz and 4.9 GHz bands was auctioned off to the four MNOs at total SUFs of HKD 1.8765bn (USD 241.3m).
5. on 20 November 2024, OFCA announced that 110 MHz of spectrum in 11 frequency blocks in the 850/900 MHz and 2.3 GHz bands was auctioned off to the four MNOs at total SUFs of HKD 2.242bn (USD 288.3m).
6. on 29 November 2024, that 300 MHz of spectrum in the 6/7 GHz band was bid for by three mobile network operators at total of SUFs of HKD 630m (USD 81m).

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.

We understand that there ha(Uve been delays with fixed network operators 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 concession obligations.

As spectrum is a scarce public resource and is in high demand, the CA has proposed that  re-assignment be take place via auction to ensure that spectrum will be put to the most efficient use and benefit the general public. In a September 2024 consultation paper, the CA considered arrangements for the re-assignment of a total of 50 MHz of spectrum in the 2.5/2.6 GHz band upon expiry of the existing assignments in May 2028 by way of auction.

However, on 11 June 2024, the results of the second round of spectrum assignment in the 26 GHz and 28 GHz bands were announced by OFCA. A total of 1,200 MHz of the spectrum were assigned in the third quarter of 2024 to the four MNOs at no charge to them.

Pursuant to the Radio Spectrum Policy Framework announced in 2007, the CA will publish a spectrum release plan to inform the 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.

No 5G-specific rules have been drafted.

We understand that there have been delays with fixed network operators 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.

The Hong Kong government encourages network sharing and the negotiating thereof among network operators without intervention, including antenna sharing, site sharing, radio access network sharing, domestic network roaming and capacity leasing. It reported that three MNOs signed an agreement on shared 5G deployment and network in April 2018.

In March 2020, Ericsson and SmarTone, announced a five-year contract to deploy 5G in Hong Kong.

Pursuant to a Collaborative Framework Agreement entered into on 26 January 2021, China Mobile Limited agreed to jointly construct the 700MHz Wireless Network with China Broadcasting Network Corporation Ltd (CBN) and share its 2.6GHz Network with CBN on a paid basis.

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

No information is currently available about granting competitors access to new 5G networks. The CA already considers the market to be ‘highly competitive’, with four MNOs serving a population of around 7.5 million.

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

Major MNOs in Hong Kong have already started testing and validating 5G-Advanced (5.5G) network technologies, which may be more widely deployed in the market. 6G services are expected to be launched by 2030.

6G network services were referenced in OFCA’s May 2024 communications as a future development to which many of the 5G measures outlined above shall also apply. The Hong Kong government’s Areas of Excellence Scheme supported the 6G@HK research project, which aims to develop 6G technologies and position Hong Kong as the regional leader in 6G research within the next 10 years.

The 6G@HK scheme centres around the following three programs:

1. Advanced Technologies Program – including research into transmission and signal processing technology, low-power and radio-frequency wave technology and wireless networking technology
2. Technology Demonstration Program – including an intelligent open radio access network demo and a reconfigurable optical-radio for ultra-broadband communications demo
3. Education and Service Program – including an industrial consortium and workshops and exchange programs for participating universities and industry participants