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HK Govt Waives Performance Bonds of 3G Mobile Operators
The Telecommunications Authority of Hong Kong Special Administrative Region (SAR) announced Friday the arrangement to waive the submission of performance bonds due in October 2002 from the four licensees for third generation (3G) mobile services.

"We have decided to give the 3G licensees a one-year waiver on the submission of performance bonds to assist the industry in response to changing market conditions. Our decision is taken after careful consideration of needs of the industry and the steps other governments have taken to help their 3G licensees," said a spokesperson for the Office of the Telecommunications Authority (OFTA).

"The waiver does not affect government revenue as the licensees are still required to pay the spectrum utilization fee (SUF) for all years within the 15-year license period," said the spokesperson.

By accepting the waiver, the four licensees would not be required to submit on Oct. 22 a performance bond to guarantee payment of the SUF of 60.124 million HK dollars (US$7.7 million) for the sixth license year to be called in the event of serious default.

The 3G licensees in Hong Kong are Hong Kong CSL Limited, Hutchison 3G HK Limited, SmarTone 3G Limited and SUNDAY 3G (Hong Kong) Limited.

(Xinhua News Agency October 12, 2002)

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