In 2001, we auctioned off the radio frequencies in the 1.9 – 2.2 GHz band for the provision of the third
generation (3G) mobile telecommunications services. The relevant spectrum assignment will expire in
October 2016. Taking into account inter-alia representations received from the two rounds of public
consultation conducted in 2012 and 2013 respectively, the CA announced its decision in November 2013
to adopt a hybrid administratively-assigned cum market-based approach to re-assign the 3G spectrum in
the 1.9 – 2.2 GHz band, under which two-thirds of the spectrum will be re-assigned administratively to the
incumbent 3G operators through right of first refusal and the remaining will be re-assigned through auction.
The Secretary for Commerce and Economic Development (SCED) also announced the related arrangements
for the spectrum utilization fee on the same day. The November 2013 announcement provides a notice
period of about three years for the incumbent 3G operators to prepare for the spectrum re-assignment in
October 2016. We will assist the SCED in completing the necessary legislative amendments in the first half
of 2014 whereupon the CA will offer the right of first refusal of two-thirds of the spectrum in the 1.9 – 2.2
GHz band to the incumbent 3G operators. We will assist the CA in finalizing the auction rules and issue
the related Information Memorandum to the industry. It is expected that the auction of the remaining 3G
spectrum will be held in the fourth quarter of 2014.