Capitalizing on Mobile Internet and Data Growth Opportunities
BEIJING and HONG KONG, Feb. 7, 2012 (GLOBE NEWSWIRE) -- 21Vianet Group, Inc. (Nasdaq:VNET) ("21Vianet" or the "Company"), the largest carrier-neutral Internet data center services provider in China, today announced that it is a provisional successful bidder for radio spectrum in the 2.3 GHz band to provide broadband wireless access ("BWA") services in Hong Kong. 21Vianet is one of three provisional successful bidders, each of whom won one frequency band of 30 MHz. 21Vianet submitted a final bid of HK$150 million (US$19.3 million), which was the minimum bidding price set by the Hong Kong Telecommunications Authority for the spectrum.
The Hong Kong Telecommunications Authority will issue a 15-year unified telecommunications carrier license to successful bidders, allowing licensees to provide fixed, mobile or a combination of these services using the licensees' frequency bands. Provisional successful bidders will be required to pay spectrum utilization fees within 30 business days and submit a refundable performance bond of HK$150 million (US$19.3 million) as a guarantee of compliance with the network and service rollout requirements.
In connection with these fees, 21Vianet obtained a non-binding letter of intent from China Development Bank, in which the bank indicated its intention to provide a US$30 million credit facility to 21Vianet to finance the BWA spectrum license.
"We are focused on capturing the best market opportunities and are pleased to win the Hong Kong spectrum auction with the minimum required bid," said Mr. Josh Chen, founder, chairman and chief executive officer of 21Vianet. "We believe that this opportunity is a cost-effective means of opening up more growth opportunities for 21Vianet. We are seeing an accelerating business trend towards accessing data through the mobile Internet. By extending our Internet infrastructure services into the wireless Internet, we aim to further embed 21Vianet into the core Internet infrastructure in Greater China."
"To utilize the BWA spectrum, we aim to partner with established mobile operators to successfully extend our service offerings," Mr. Chen continued.