Subsidy Scheme to Extend Fibre-based Networks to Villages in Remote Areas

With a view to encouraging operators to roll out optical fibre networks in remote areas in Hong Kong, the Chief Executive announced in the 2017 Policy Address that the Government would take the lead to provide operators with financial incentives in the form of subsidies to encourage the extension of optical fibre networks to villages in remote areas.

The subsidy scheme covers 235 villages across nine districts in the New Territories and outlying islands (namely North, Sai Kung, Tai Po, Sha Tin, Yuen Long, Tuen Mun, Tsuen Wan, Kwai Tsing and Islands). These 235 villages are grouped under six projects. In June 2019, OFCA issued tender documents to invite eligible fixed network operators (FNOs) to participate in the subsidy scheme.

The subsidy scheme will subsidise the selected FNOs to roll out lead-in connections to the vicinity of the entrances of the villages concerned. The subsidy scheme will also subsidise the roll-out of three submarine cables connecting Lamma Island from Hong Kong Island, Cheung Chau from Lantau Island and Peng Chau from Lantau Island respectively.

To introduce competition, the selected FNOs are required to open up at least half of the capacity of the subsidised network facilities for use by other FNOs for free.



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