New chapter of success 4G-ing ahead

The people of Hong Kong have long been receptive to new technologies. The significant amount of mobile data accessed in the past few years attests to this. There has been a doubling from 2.36 billion Megabytes in early 2011 to 5.05 billion Megabytes this year, with mobile users growing by 15 percent to 15 million over the same period.

What is more, according to a global smartphone survey conducted by Google in 2011, the average number of applications (apps) owned by Hong Kong smartphone users was 30 - the highest in Greater China. Such a welcoming environment bodes well for the fourth generation of mobile wireless communication, better known as 4G, which has started to penetrate the local market.

So what can be expected from 4G? Speed, being up to ten times faster than its 3G counterpart, is certainly a major attribute, in turn boosting the capability of such mobile devices as smartphones, tablets, "netbooks" and laptop computers as well as wireless hotspots. In terms of economic and social benefits, one independent macroeconomic research study commissioned by the UK's largest communications company offers an idea of 4G's possibilities. The study revealed that 4G mobile networks have the potential to add 0.5 percent to the country's GDP, pumping 5.5 billion pounds of direct investment into the UK economy by 2015 and creating or protecting up to 125,000 jobs.

Here in Hong Kong, the first commercial 4G LTE (Long Term Evolution) network commenced operation in February 2012. At present, four telecommunications providers offer such services. This makes the city among the few in Asia with 4G commercial networks - Singapore and Japan being among this elite group. The enhancement of network infrastructure coupled with the evolution of smartphones has driven the demand for mobile apps, and there are increasingly more companies developing their own apps for branding and marketing purposes.

Hong Kong Science and Technology Parks Corporation (HKSTPC) has consequently sought to encourage local industries and entrepreneurs to take maximum advantage of this 4G head start. One of the HKSTPC's efforts is the Incu-App Technology Business Incubation Programme (Incu-App), which was launched at the start of the year. Assisting entrepreneurs and start-ups seeking to penetrate the thriving apps industry, which includes mobile, Internet and portal apps, the intensive 18-month program provides various levels of assistance.

Aside from the incubation program, Hong Kong Science Park has a number of partner companies engaged in 4G-related technologies, spanning wireless testing equipment for 4G to LTE baseband chip set module development. Aiding their efforts is the newly opened LTE Test Lab, which is a collaborative product of HKSTPC and Munich-based Rohde & Schwarz GmbH & Co KG. Located within the Wireless Communications Test Lab of the Park, the new facility provides a conducive and dynamic 3GPP testing environment that aids development of LTE technologies. With this latest addition, partner companies can thus bolster their competitiveness before 4G truly gains traction.

The dawn of 4G will largely be dependent on the greater availability of associated handsets and more commercial networks globally. Some analysts expect this will reach the 100 mark (LTE networks) by the end of 2012; hence, full-scale penetration of 4G will happen sooner rather than later. Echoing this view is the senior director of GSM Association's Asia-Pacific branch, Jaikishan Rajaraman, who noted that there will be 126 million LTE network subscribers in the Asia Pacific region by 2015 - 58 million being from China - and the number of 4G users will reach 300 million across 55 countries by 2015.

With 4G now on our doorstep, local companies can once again help Hong Kong begin a new chapter of success, drawing on their entrepreneurial spirit, business acumen and capacity to innovate.

The author is chairman of the HKSTPC.

(HK Edition 08/25/2012 page3)