Hong Kong 6 GHz Spectrum Auction

event 16.01.2025 person Admin

Hong-Kong

Hong Kong has successfully auctioned a portion of its upper 6 GHz spectrum, generating HK$630 million ($81 million) in winning bids. However, the auction saw limited participation, with one major operator opting out, and a quarter of the available spectrum remaining unsold.

Auction Highlights

The auction, which took place in December 2024, was the first of its kind to allocate the upper 6 GHz band for mobile telecommunication services. Three of Hong Kong's four major mobile operators secured 100 MHz each, with the following allocations:

China Mobile Hong Kong: 6570–6670 MHz
Hong Kong Telecom: 6670–6770 MHz
Smartone: 6925–7025 MHz

Despite the strategic importance of this spectrum for future mobile networks, 7025–7125 MHz went unsold.

Limited Competition and Bidding Trends

The final bids were only 5% above the reserve price, which was set at HK$2 million per MHz. This subdued bidding contrasts sharply with an earlier 850/900 MHz and 2300 MHz auction, where final bids reached 3.5 to 7 times the reserve pricing.

A key factor in the muted interest was the absence of Hutchison, which released a statement acknowledging its involvement but clarifying that it did not actively participate. The company cited several reasons for its reluctance, including:

The immaturity of the device and infrastructure ecosystem in the 6 GHz band.
Limited global adoption of the frequency range for mobile services.
A lack of compelling use cases at this stage.
Existing spectrum sufficiency, allowing alternative network optimization strategies.

Future Outlook

The spectrum licenses granted through this auction will remain valid for 15 years, with assignments set to take effect by March 2025.

While some operators remain hesitant due to the current lack of device support and ecosystem maturity, China’s endorsement of mobile use in the upper 6 GHz range is expected to drive improvements in equipment availability and adoption worldwide. Hong Kong's cautious yet forward-looking approach ensures flexibility for future developments in mobile communications.

Relevant spectrum updates are reflected in our database and can be found here: https://www.spectrum-tracker.com/Hong-Kong