Hong Kong’s telecommunications sector is headed for a shake-up that could test the patience of consumers and local network operators, after the government’s decision to reassign the existing 3G mobile spectrum. The Communications Authority said the government would auction off a third of the 3G spectrum currently held by each of the city’s four incumbent 3G mobile network operators in the fourth quarter next year. But the government will also offer the operators – SmarTone Telecommunications, CSL, Hutchison Telecommunications’ Three Hong Kong and PCCW’s HKT – right of first refusal to be reassigned two-thirds of the spectrum they now hold. Their licenses are due to expire in October 2016, when each operator will make HKD151 million in royalty payments. Authority Chairman Ambrose Ho said this “hybrid” approach would “encourage competition and allow new investment to enter the local market. It is more likely to promote innovative services from new 3G spectrum assignees and the incumbents”. China Mobile has expressed an interest in bidding for the reassigned spectrum. The four operators expressed their disappointment, raising the specter of service degradation, including slower download speeds, when chunks of their spectrum are removed from service in October 2016. Hutchison Telecom accused the government and in particular the Communications Authority of total disregard for the public’s interest. The operators’ lawyers are considering litigation.