3G licenses may be limited

date: 20th December 2000, source: taipeitimes.com

A report in the local press said the government plans to issue only three third-generation (3G) mobile Internet licenses in Taiwan, and the licenses will go out auction style. Industry players reacted with calm, however, saying guidelines for the licensing process will not be finalized until January of next year.

A 3G licence -- the right to deploy a mobile Internet network -- is the next stage after second generation (2G) technologies such as GSM (global system for mobile communications), GPRS (general packet radio service), and WAP (wireless access protocol).

Local media reported yesterday the Ministry of Transportation and Communications backed a plan to issue only three licenses for companies who want to operate 3G mobile Internet systems in Taiwan.

The report also indicated an auction style bidding process would decide which companies won a license. Industry players bidding for a license would be required to put down a deposit and undergo a thorough review of qualifications before being invited to bid on a license.

Furthermore, while a minimum bid will be set using figures supplied by an outside research firm, the Nomura Research Institute -- estimated at between NT$10 billion and NT$40 billion -- no maximum bid will be set.

Winners of one of the three licenses would be allowed to pay for the right to run a 3G system in installments, not all in one lump sum.

This announcement goes decidedly against the tone of a meeting last week convened by Legislator Chou Ya-shu, chair of the 3G licensing committee, to determine whether Taiwan should limit 3G licenses to just three over concern about available bandwidth.

Industry representatives and researchers from two of the three research organizations working on the issue said Taiwan had enough bandwidth for five licenses.

"I think even six licenses wouldn't be a problem," said Tsehong Tsai, professor of engineering at National Taiwan University and head of the 3G task force under the Directorate General of Telecommunications, while speaking at the meeting.

"Hong Kong is issuing four 3G licenses and Singapore plans to issue six," he added. "Is there something different about Taiwan that would limit us to just three?"

top