Hong Kong regulator OFTA's planned hybrid auction calls for, among other things, a royalty payment scheme for license winners to pay off their bids. However, the details of the royalty scheme have to be approved by LegCo via legislation before the auction can proceed. Some lawmakers, as well as some industry representatives, have criticized the current royalty plan, which calls for the royalty percentage to be based on the highest bid of the four license winners. Other aspects of the 3G auction process have also drawn concern, such as the blind bidding process under which the identities of bidders and the amount of their bids will be kept secret from each other until OFTA has decided on the winners.
Critics say the blind bidding scheme is unfair and lacks transparency.
If LegCo fails to pass the bill by that date, Hong Kong's 3G auctions could be delayed further. An official for the Information Technology and Broadcasting Bureau expressed optimism that the legislation will pass by July, keeping the process on track for a September auction, the Post reports.