Hong Kong’s Office of the Telecommunications Authority (OFTA) aims to conduct an auction for assigning the available radio spectrum in the 2300MHz band in the second half of 2011. The regulator has released proposed auction rules and licensing arrangements for the spectrum left over from a 2009 auction, based largely on the procedures used that year. Under the proposals, the available frequencies will be divided into three 30MHz blocks; new entrants and incumbent licensees, including the successful bidders in the 2009 auction, may participate in the auction; an individual bidder spectrum cap of 30MHz will apply; each band will be subject to a one-off upfront spectrum utilisation fee (SUF), the amount of which is to be determined by the auction. The three bands – 2300MHz-2330MHz, 2330MHz-2360MHz and 2360MHz-2390MHz – will be assigned under 15-year unified carrier licences; winners will be allowed to provide fixed, mobile or a combination of both services; licensees will be required to submit performance bonds to guarantee network and service rollout. Where the authorised scope of service includes a fixed service, a minimum coverage of 200 residential and/or commercial buildings within five years is required. Where the authorised scope of service includes a mobile service, a minimum coverage of 50% of Hong Kong’s population within five years is required; licensees will be required to implement and facilitate at their own expense mobile number portability. Although the 2.3GHz concessions will be technology-neutral, it is expected that the licensees will deploy Time Division Duplex (TDD) technologies, according to OFTA’s statement.