ISE06/19-20

Subject: information technology and broadcasting


Spectrum for 5G

Superiority of 5G technology

  • With the combination of high, medium and low frequency bands, 5G improves on 4G in terms of the following three major areas:

    (a)increased speed: 5G can provide up to 20 times faster speed (20 Gbps) compared with current 4G peak speed (1 Gbps);

    (b)low latency: the end-to-end latency in 5G could reduce to one millisecond which is 50 times shorter than that in 4G; and

    (c)higher capacity: 5G is expected to support up to one million connected devices per one square kilometre, which is a 1 000 times increase over 4G capacity14Legend symbol denoting See Singapore Public Service (2019)..

Applications of 5G technology

Figure - Applications of 5G technology

Figure - Applications of 5G technology

Source: Office of the Communications Authority.

5G development in Hong Kong

  • According to the Government, 5G development needs to be supported by spectrum in the high, mid and low frequency bands17Legend symbol denoting See GovHK (2019b).. In March 2019, the Office of the Communications Authority ("OFCA") offered assignment of 400 MHz of spectrum in the 26 GHz and 28 GHz bands to each of the three MNOs as per their applications.
  • OFCA subsequently auctioned a total of 380 MHz of spectrum in the 3.5 GHz, 3.3 GHz and 4.9 GHz bands in the second half of 2019. For the low frequency band, OFCA plans to vacate up to 160 MHz of spectrum in the 600/700 MHz band for public mobile services (including 5G services), after the switching off of analogue television broadcasting on 30 November 2020.
Table - Amount of 5G spectrum acquired by MNOs

  HKT CMHK SmarTone 3HK
26/28 GHz 400 MHz 400 MHz 400 MHz nil
3.5 GHz 50 MHz 60 MHz 50 MHz 40 MHz
3.3 GHz 30 MHz 20 MHz 20 MHz 30 MHz
4.9 GHz 40 MHz 40 MHz nil nil
Total 520 MHz 520 MHz 470 MHz 70 MHz
Source: Office of the Communications Authority.

Challenges for launching 5G in Hong Kong

  • Hong Kong saw the commercial launch of 5G services on 1 April 2020. Nevertheless, there are still some issues that might need to be addressed to ensure sustainable development of the services. These include the installation of 5G equipment, co-existence of 5G with satellite earth stations, availability of cybersecurity specialists, and safeguards against personal data breach.
  • 5G requires many more base stations that are more densely distributed than existing ones. Some MNOs have expressed their concerns over the long negotiation time with property owners for the installation of their 5G radio equipment. The Government is proactively opening up 1 000 suitable government premises for the installment of base stations by MNOs, but the industry believes many more sites are necessary18Legend symbol denoting See South China Morning Post (2019).. As discussed below, South Korea needs to construct more base stations to provide stable coverage for its 5G services, amid consumer complaints of weak signals and poor connections after the launch of services in April 2019.
  • There is also the problem of 5G interfering with satellite earth stations. In Tai Po and Stanley, the satellite earth stations are currently using the 3.5 GHz band which has been considered as the most popular band for deploying 5G. To avoid interference, OFCA has set up restriction zones in Tai Po and Stanley to constrain the development of mobile base stations operating in the 3.5 GHz band in the area. Yet, the restriction zones might affect the relevant research and development work in the Chinese University of Hong Kong and the Hong Kong Science Park, as well as the use of 5G communications by more than 700 000 members of the public. 19Legend symbol denoting See GovHK (2019b).
  • As mentioned above, the technological design of 5G inevitably creates increased risk of cyberattacks and data privacy breaches. The current problem for Hong Kong is the availability of experienced cyber security specialists in the information technology ("IT") sector. Of the 95 780 IT employees in 2018, only 1 118 or 1.2% were in IT security. Furthermore, there is neither a cybersecurity law nor mandatory notification mechanism for personal data breach in Hong Kong. Information security issues, such as computer and Internet-related crimes, are currently dealt with under the criminal laws.

5G development in South Korea

  • South Korea was an early mover in 5G development20Legend symbol denoting 5G services were showcased during the Winter Olympics in February 2018 where 5G technology was used for live streaming of sporting events. which auctioned off 3.5 GHz and 28 GHz spectrum in June 2018. 5G services were launched in December 2018 for business customers and in April 2019 for residential users. It is expected that the deployment of nationwide 5G networks will be fully completed in 2022 or 2023.
  • More than four million South Korean consumers have already signed up for 5G services since its rollout in April 201921Legend symbol denoting The number of 5G subscribers reached 4.7 million by end-2019, representing 7% of South Korea's mobile subscribers. See tefficient (2019).. The rapid adoption reflects, among other things, the proactive role that a government can play in creating a successful 5G launch. In South Korea, the government has implemented a series of initiatives to foster an optimal environment for MNOs to deploy 5G networks. The actions taken include:

    (a)establishing a health industry ecosystem - The Ministry of Science and ICT ("MIST") established a public-private partnership - 5G Forum - in 2013 on the basis of the collaboration between mobile network operators, global equipment manufacturers, research institutes, universities and the government. 5G Forum's main missions and objectives are to promote 5G technology research and development, as well as international collaboration on 5G technology; 

    (b)formulating a national 5G strategy with targets to achieve - In April 2019, the South Korean government announced a national strategy, 5G+ Strategy, to foster the development of 15 5G-related strategic sectors by 2026. The strategy also set out the goals of generating US$73 billion (HK$572.0 billion) from the production of goods in 5G-related industries, or 15% of the global market share, by 2026;

    (c)reforming legislation to facilitate 5G infrastructure development - In April 2018, MIST revised legislation to provide MNOs with greater access to local government-owned locations (such as streetlamps and traffic facilities) to install mobile equipment for 5G services. As a result, the number of 5G-installed base stations has increased from around 8 500 at the end of 2018 to 85 000 by April 2019;

    (d)providing financial support to the industry - To support 5G network investment, the government offers MNOs a tax credit equivalent to 2%-3% of their investment in 5G base stations for a two-year period between 2019 and 2020. The government also provides innovative 5G start-ups with financial support in the form of loans and grants; and

    (e)encouraging network sharing between MNOs - Led by the government, three MNOs signed an agreement on a shared 5G deployment and network in April 2018. The agreement is to avoid redundant investment in 5G infrastructure, which results in US$1 billion (HK$7.8 billion) in savings over 10 years.
  • While South Korea is ahead of many countries in the launch of 5G services, local users have reportedly complained of weak signals and poor connections22Legend symbol denoting See Financial Times (2019) and Asia Wall Street Journal (2019).. Another common complaint among users is the unavailability of the services in many places, especially rural towns. As explained by some analysts, there are not enough base stations for nationwide coverage and MNOs need to expand their facility investment quickly to solve the problem.

5G development in the United Kingdom

  • The UK is the first country in Europe to have four 5G networks23Legend symbol denoting The four 5G networks in the UK are run by Three, O2, EE (a subsidiary of BT) and Vodafone. EE was the first MNO to launch 5G mobile services in the UK on 30 May 2019.. In April 2018, the country auctioned off 150 MHz of spectrum in the 3.4-3.6 GHz band to four MNOs. Subsequently in July 2018, the UK government published the 90-page report Future Telecoms Infrastructure Review recommending ways to accelerate the roll-out of 5G networks to most of the population by 2027 and the nationwide coverage of full fibre by 2033.
  • 5G Testbeds and Trial Programmes ("5GTT") at the Department of Culture, Media and Sport ("DCMS") is a fundamental part of the Future Telecoms Infrastructure Review. Through 5GTT, the UK government coordinates pilot and trial activities to identify potential deployment and technical challenges for 5G, reduce commercial risks associated with investment in 5G by stimulating demand for new services, and help inform future policy.
  • The UK also amended the Electronic Communications Code in late 2017, aiming to make the legislation more appropriate to future networks as they evolve. The amended Code includes provisions making it easier and cheaper for MNOs to secure access to land from site owners for (a) deploying new mobile sites and (b) modifying existing sites (e.g. for addition of new antennas).24Legend symbol denoting One salient feature of the amended Code is the introduction of the "no scheme" valuation system, which limits landowners' ability to charge premium prices for the use of their property for telecommunications infrastructure. The calculation of rental charges is based on the value of the owner's property, rather than the value MNOs may reap in return. The Government states that while landowners should receive fair payment for the use of their land, this should not include a share of the economic value created by the demand for services provided by MNOs.
  • In addition to the above facilitation measures, the UK government has also placed much emphasis on cybersecurity risks and cybersecurity manpower development. On cybersecurity risks, the government released a 5GTT technical report on 5G network security in December 2018, which outlines the following four security principles that 5G should meet:

    (a)cross-layer security – a uniform framework is needed to co-ordinate different security methods applied to different parts of a 5G network (such as the software, physical infrastructure and devices);

    (b)end-to-end security – there should be a secure connection between the network users and the core network;

    (c)cross-domain security – 5G technology creates a large number of novel use cases with unique requirements. This renders the need for co-ordination between those involved in the 5G system to enact integrated security solutions that go across domains; and

    (d)security-by-design – security must be built into the network design process during developmental stages.
  • The UK also implemented the Data Protection Act 2018 on 25 May 2018, in a move to provide a comprehensive and modern framework for data protection. In the event of a personal data breach, the Act requires data controllers to notify the Information Commissioner's Office without undue delay and, where feasible, not later than 72 hours after having become aware of it. In cases where there is a high risk, data controllers must notify the individuals affected.
  • As to cybersecurity manpower development, the UK launched the Cyber Skills Immediate Impact Fund in 2018 as a pilot scheme to increase the members and diversity of those working in the UK's booming cycle security sector. The Fund incentivizes a range of organizations, such as training providers and charities, with grants to develop, scale up, or refocus cyber security training initiatives. These initiatives range from face-to-face teaching to online platforms, and hybrids of these approaches.
  • In September 2019, DCMS commissioned the establishment of the UK Cyber Security Council through a consortium of cyber security professional bodies. The Council will be charged with, among other things, the development of an agreed framework of career pathways, including certification and qualifications required at each occupational level. The aim is to establish a nationally recognized career structure adopted by the whole cyber security sector across the UK.

Concluding remarks

  • After the launch of 5G services in Hong Kong, various stakeholders should make follow-up efforts to unleash its full potential. The experiences of South Korea and the UK illustrate the role of a government can play to accelerate the deployment of 5G services. The South Korean and UK governments have implemented various facilitation measures to foster an optimal environment for MNOs to deploy 5G networks. The UK government has gone further with proactive measures to develop cybersecurity talent and address the potential risk of personal data breach.


Prepared by Gary NG
Research Office
Information Services Division
Legislative Council Secretariat
14 April 2020


Endnotes:

1.Latency refers to the time lapse between when a base station sends data and when a destination device (e.g. mobile phone) receives it.

2.By 2025, Ericsson expects 5G to have 2.6 billion subscriptions covering up to 65% of the world's population and generating 45% of the world's total mobile data traffic. See Ericsson (2019).

3.GSMA, which was formed in 1995, represents the interests of mobile operators worldwide.

4.See GSMA (2018).

5.On 1 April 2020, three MNOs, Hong Kong Telecom ("HKT"), China Mobile Hong Kong ("CMHK") and 3 Hong Kong ("3HK"), launched 5G services in Hong Kong.

6.The vision of 5G technology is "always available", i.e. constant connectively at anytime, anywhere, through the deployment of a large number of base stations and an omnipresence of smart lampposts, smartphones and other devices. The enormous amount of personal data so generated allows precise tracking and monitoring of individuals' locations instead of an approximation.

7.ITU is a United Nations specialized agency for issues concerning information and communication technologies.

8.South Korea was estimated to have 1.6 million 5G subscribers at the end of June 2019, accounting for an overwhelming 82.4% of the global total. See Samsung (2019).

9.Radio waves are usually specified by their frequency which is measured in Hertz or Hz, where 1 GHz = 1 000 MHz = 1 000 000 000 Hz.

10.Bits per second (abbreviated bps or bit/sec) is a common measure of data transmission speed, specifying how much information (called bits) can be transmitted per second. Gbps is equal to 1 000 000  000 bits per second.  

11.Bandwidth means the size of the band. For example, the frequency band 600-700 MHz has a bandwidth of 100 MHz; and the 26 GHz band (24.25-27.5 GHz) covers 3.25 GHz of spectrum. The latter band has a wider/larger bandwidth. The bandwidth determines how much data a portion of spectrum can carry, and a wider bandwidth can carry more data and support higher speed.

12.Another technology is Massive MIMO (multiple input, multiple output) technique which deploys a large number of antennas at the base station to improve spectral efficiency of wireless networks.

13.Macro cells is a type of base stations which is used to provide coverage over large area, which are typically installed in ground-based masts, rooftops or other existing structures.

14.See Singapore Public Service (2019).

15.Both virtual reality ("VR") and augmented reality ("AR") are examples of immersive technologies that integrate virtual content with physical environment. VR uses the technology to simulate an interactive, three-dimensional environment, while AR uses it to superimpose a virtual object on to a real world environment.

16.The Internet of Things describes the network of physical objects-"things"-that are embedded with sensors, software and other technologies for the purpose of connecting and exchanging data with other devices and systems over the Internet.

17.See GovHK (2019b).

18.See South China Morning Post (2019).

19.See GovHK (2019b).

20.5G services were showcased during the Winter Olympics in February 2018 where 5G technology was used for live streaming of sporting events.

21.The number of 5G subscribers reached 4.7 million by end-2019, representing 7% of South Korea's mobile subscribers. See tefficient (2019).

22.See Financial Times (2019) and Asia Wall Street Journal (2019).

23.The four 5G networks in the UK are run by Three, O2, EE (a subsidiary of BT) and Vodafone. EE was the first MNO to launch 5G mobile services in the UK on 30 May 2019.

24.One salient feature of the amended Code is the introduction of the "no scheme" valuation system, which limits landowners' ability to charge premium prices for the use of their property for telecommunications infrastructure. The calculation of rental charges is based on the value of the owner's property, rather than the value MNOs may reap in return. The Government states that while landowners should receive fair payment for the use of their land, this should not include a share of the economic value created by the demand for services provided by MNOs.


References:

Hong Kong

1.Communications Authority. (2018) Press Releases: SCED and CA Announce Arrangements for Releasing 5G Spectrum in Various Frequency Bands.

2.Communications Authority. (2019a) Annual report 2018-2019.

3.Communications Authority. (2019b) Code of Practice on the Operation and Management of Internet of Things Devices.

4.Constitutional and Mainland Affairs Bureau. (2019) Motion on "Keeping up with Technological Development and Enhancing the Protection of People's Privacy" at the Legislative Council meeting of 22 May 2019 Progress Report.

5.GovHK. (2019a) Hong Kong IT Manpower.

6.GovHK. (2019b) Press Release: LCQ4: Development of 5G mobile network and services.

7.Legislative Council Secretariat. (2019a) Background brief on spectrum assignment and the fifth generation mobile services.

8.Legislative Council Secretariat. (2019b) The Chief Executive's 2019 Policy Address Policy Initiatives of Innovation and Technology Bureau.

9.South China Morning Post. (2019) Technical issues must be addressed before roll-out of 5G services.


Others

10.Asia Wall Street Journal. (2019) 5G Underwhelms in Its First Big Test.

11.Business Insider Intelligence. (2019) The Global 5G Landscape.

12.City of London. (2020) The UK: cyber security expertise and capital.

13.Ericsson. (2019) Ericsson mobility report November 2019.

14.Financial Times. (2019) South Koreans complain at poor quality of 5G network.

15.GSMA. (2016) Improving wireless connectivity through small cell deployment.

16.GSMA. (2018) Study on Socio-Economic Benefits of 5G Services Provided in mmWave Bands.

17.GSMA. (2019a) The state of mobile 5G in the United Kingdom.

18.GSMA. (2019b) Towards a sustainable 5G.

19.ITU. (2018) Setting the Scene for 5G: Opportunities & Challenges.

20.Ministry of Science and ICT, Republic of Korea. (2019) Korea to Announce 5G+ Strategy Pledging to Provide World's Best 5G Service Based on World's First 5G Commercialization.

21.Ministry of Science and ICT, Republic of Korea. (2018) 2017 Annual Report on the Promotion of the Korean ICT Industry.

22.Ofcom. (2017) 5G spectrum access at 26 GHz and update on bands above 30 GHz.

23.NEC Corporation. (2015) Massive-Element Antenna for Small Cell Solutions in 5G.

24.Nokia. (2018) LuxTurrim5G - Building key enablers for a Digital Smart City.

25.Samsung. (2019) 5G Launches in Korea.

26.Singapore Public Service. (2019) Instruction Manual: 5G And Mobile Connectivity.

27.tefficient. (2020) Nine months with 5G: 4.7 million subs - each using 27 GB per month.

28.The Government of the Republic of Korea. (2019) 5G+ Strategy.

29.The Republic of Korea, 5G Forum. (2016) 5G Service Roadmap 2022.

30.UK Government. (2018a) Data Protection Act 2018.

31.UK Government. (2018b) Developing the UK cyber security profession.

32.UK Government. (2018c) Technical Report on 5G Network Architecture and Security.

33.UK Parliament. (2019a) 5G.

34.UK Parliament. (2019b) 5G technology.

35.UK Parliament. (2019c) Immersive and addictive technologies.

36.World Economic Forum. (2019) What you need to know about 5G.



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