LCQ9: Subsidy Scheme for Encouraging Early Deployment of 5G
6.7.2022

Following is a question by the Hon Jimmy Ng and a written reply by the Secretary for Commerce and Economic Development, Mr Algernon Yau, in the Legislative Council today (July 6): Question: The Government has earlier on increased the funding earmarked for the Subsidy Scheme for Encouraging Early Deployment of 5G (the Scheme) to raise the total subsidy amount of the Scheme to $100 million, and extended the application period of the Scheme to July 31, 2022, with a view to encouraging the public and private sectors to deploy the fifth generation (5G) of mobile telecommunications and technology to foster continuous innovation. In this connection, will the Government inform this Council: (1) of the respective numbers of applications received, approved and rejected so far, as well as the number of applications currently under vetting; the average time taken for vetting and approving each application, as well as the average subsidy amount of the approved applications; (2) of the current balance of the total subsidy amount of the Scheme; whether it has plans to increase the total subsidy amount of the Scheme again, so as to subsidise more projects; if so, of the details; if not, the reasons for that; (3) whether it will consider extending the application period of the Scheme again, or regularising the Scheme; if so, of the details; if not, the reasons for that; and (4) given that under the Scheme, a subsidy amounting to 50 per cent of the actual costs directly relevant to the deployment of 5G technology will be granted to an approved project, subject to a cap of $500,000, whilst each applicant shall be eligible to receive subsidy for one project only, whether the Government will raise the subsidy rate and the cap of the subsidy amount, as well as increase the number of projects for which each applicant is eligible to receive subsidy; if so, of the details; if not, the reasons for that? Reply: President, Our consolidated reply to the various parts of the question as raised by the Member is as follows: To encourage early deployment of 5G in various industries for enhancing efficiency, productivity and service quality, we launched the Subsidy Scheme for Encouraging Early Deployment of 5G (the Subsidy Scheme) under the Anti-epidemic Fund in May 2020. An amount totalling $100 million has been earmarked to subsidise half of the actual cost directly related to the deployment of 5G technology in an approved project (subject to a cap of $500,000 for each project). The Subsidy Scheme is implemented by the Office of the Communications Authority. As at June 20, 2022, relevant statistics of the Subsidy Scheme are tabulated below: Applications received 533 Applications approved 141 Applications rejected for not meeting the eligibility criteria/withdrawn 350 Applications under assessment 42 Average time of assessment About three weeks (from receipt of the application form with complete information) Average amount of subsidy for an approved project About $440,000 The Subsidy Scheme has been well received. It has supported the use of innovative applications in various industries, such as remote real-time healthcare, construction site safety monitoring, remote mechanical maintenance, e-sports car racing, 4K/8K live broadcast of musical performance or sports coaching, thereby demonstrating the wide applicability of 5G. The current subsidy model has been operating smoothly, and the subsidy amount and ratio have balanced the need for using public funding wisely and supporting innovative 5G projects. To encourage the deployment of 5G technology by more public and private organisations to foster innovation, we announced on June 20 that the deadline for applications to the Subsidy Scheme would be further extended to the end of this year. We will continue to step up publicity of the Subsidy Scheme with a view to providing support for more diversified innovative business services and smart city applications, and promoting a wider use of 5G technology.