More Involvement for Foreign Firms in Taiwan

date: August 29, 2001

A proposal forwarded by the Directorate General of Telecommunications has been passed by the Ministry of Transportation and Communications (MOTC) of Taiwan.

According to the proposal, the cap limit of direct foreign-owned stakes in type-I telecommunications firms of Taiwan will hike from 20% to 49%.

The number of foreign-Taiwanese partnerships that will be formed to bid for 3G permits is expected to increase after the new measure takes place.

Meanwhile, the amount of combined stakes to be held by foreign players in telecommunications service firms of Taiwan has not been altered.

Up to 60%t of indirect and direct shares in a telecommunications firm can be held by foreign companies.

Chinese Petroleum, Taiwan Sugar and Taiwan Power have all revealed that they are not intending to follow previous plans to enter Taiwan's 3G license contest.

All three of the corporations are equipped with the capacity to establish 3G hardware ability, but are unsure how they would generate profits from 3G and have been forced to rethink their strategies. It is believed that CP has withdrawn because some legislators, believed to have special interests with local private telecoms firms, have vowed to boycott CP's move in the review of the company's 2002 budget plan.

CP wants to avoid being affected by this boycott, but admitted that if it does not make the most of this opportunity to expand into telecoms there will be very few opportunities in the future.

TS had earlier attempted to enter the fixed line market, but budget cuts stunted plans.

TP announced its cancellation of its 3G business plan because of dwindling budgets and the uncertainty of the business.

Hi3G Access, UMTS NewsDesk

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