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Hong Kong awards 3G licences to four bidders
Posted: 20-Sep-2001 [Source: FT]

[Licenses awarded based on a revenue-sharing scheme.]

by Joe Leahy, Hong Kong -- "Hong Kong on Wednesday awarded third-generation cellular licences to each of the four carriers that applied, forgoing the need for an auction.

"Hong Kong had planned to auction the licences but was forced to award them at the reserve price because two of the city's six cellular providers opted not to bid.

"Providers of the licences, which were awarded on the basis of a revenue-sharing scheme, have to pay 5 per cent of network revenue over the next 15 years, or a minimum of HK$50m ($6.4m) per year in the first five years and rising thereafter.

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