SmarTone-Vodafone to implement LTE through reuse of existing, lower-frequency spectrum, which provides superior radio in-building coverage

February 26, 2009

1 Min Read

HONG KONG -- SmarTone-Vodafone today announced its plan to implementnext generation wireless broadband technology, LTE (Long Term Evolution), through the reuseof its existing spectrum, providing materially higher speed, lower latency and greatercapacity for broadband connectivity and high bandwidth services. Customers will also benefitfrom superior in-building coverage through implementation of LTE at the lower frequencyspectrum.

SmarTone-Vodafone ceased to continue with the BWA spectrum auction at HK$453 millionas that had exceeded the cost difference between implementing LTE with the new spectrumand implementing LTE on existing spectrum. SmarTone-Vodafone’s maximum bid price isbased on the incremental value attributable to implementing LTE with the new spectrum, andthe savings made upon return of existing excess spectrum to the government. As bidding forthe new spectrum went beyond this maximum bid value, SmarTone-Vodafone chose insteadto implement LTE on its existing spectrum.

“We will re-use part of our existing spectrum to implement LTE. This provides the greatestflexibility and the most efficient way to meet market demand for LTE as and when required,as well as maximising value for our shareholders and customers.” said Mr. Douglas Li, CEOof SmarTone-Vodafone.

SmarTone-Vodafone’s existing spectrum is capable of supporting business growth withHSPA and HSPA+ in the next several years, even assuming robust growth in traffic andcapacity requirements. It is also confident that proven LTE equipment and devices will bewidely available by the time it commences LTE implementation. SmarTone-Vodafone’simplementation of LTE with existing spectrum at lower frequencies will be relatively morecomplex but offers the benefit of better radio in-building coverage, an important advantage inthe Hong Kong cityscape. Speed, latency and capacity can be made the same as on thehigher frequencies.

SmarTone Telecommunications Holdings Ltd. (Hong Kong: 0315)

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