HKT urges reforms to spectrum policy

In this article (5)
HKT has publicly criticized the Hong Kong government over its handling of spectrum-related matters, asserting that the region risks becoming “a third-class citizen in mobile service development.”
In an open letter to the government, HKT expressed concern over a range of issues, including a belief that the government is not doing enough to release more spectrum to the market, the failure to follow up on a pledge to introduce spectrum trading and insufficient public engagement over a planned spectrum reassignment exercise.
HKT also expressed concern over the fact that spectrum prices have “increased astronomically over the years [to the extent that] Hong Kong spectrum prices are now the most expensive in the world.”
Such high prices aren’t necessary when the government already has a huge budget surplus, HKT said. The charges are also inevitably passed on to consumers, who could see prices go up by more than HK$12 per month if the government sticks to its current pricing proposals.
“What Hong Kong needs is a forward-looking, accommodating and holistic approach to spectrum policy, not a simplistic spectrum auction that is purely designed to maximize government revenues at the expense of the spectrum policy objectives,” HKT concluded.
Questions & Answers
Q.What are HKT's main criticisms of the Hong Kong government's spectrum policy?
What are HKT's main criticisms of the Hong Kong government's spectrum policy?
HKT believes the government isn't releasing enough spectrum and hasn't followed through on a pledge for spectrum trading. They also raised concerns about insufficient public engagement for a planned reassignment exercise and extremely high spectrum prices.
Q.What impact could the government's current spectrum pricing proposals have on consumers?
What impact could the government's current spectrum pricing proposals have on consumers?
HKT stated that consumers could see their mobile service prices increase by more than HK$12 per month. This is because high spectrum charges are inevitably passed on by providers.
Q.Why does HKT believe Hong Kong's spectrum prices are unnecessarily high?
Why does HKT believe Hong Kong's spectrum prices are unnecessarily high?
HKT argues that the government has a significant budget surplus, so charging such high prices isn't necessary. They suggest the current auction system is focused on revenue maximisation over policy objectives.
Q.What outcome does HKT fear if the current spectrum policy continues?
What outcome does HKT fear if the current spectrum policy continues?
HKT warns that Hong Kong risks becoming 'a third-class citizen in mobile service development'. They advocate for a forward-looking, accommodating, and holistic approach to spectrum policy instead of solely revenue-driven auctions.
Reader pulse
Are HKT's spectrum concerns valid?
19,208 votes so far