KG Telecom withdrawn Taiwan's 3G auction

date: December 27, 2001

NTT DoCoMo, the first 3G operator in the world, said its partner KG Telecom had withdrawn its application for a 3G wireless license in Taiwan.

DoCoMo acquired a 20% equity stake in KG Telecom in November 2000 and both parties had hoped to buy a 3G license in Taiwan. However, DoCoMo said given the high number of licenses on offered per person and poor economy situation in Taiwan that it is best to assess the result of the auction and the market trend than driving-in buying the license.

In October, Taiwan's Ministry of Transportation and Communications has finalised the terms of the bidding process for 3G licenses. Five 3G licenses are to be issued by the end of the year, from which the government plans to raise at least $973 million.

The licenses would be for 15 years and cover all of Taiwan. Minimum bids will range from US$121 million to $220 million, based on the bandwidth. At least seven business conglomerates in Taiwan have so far shown interest.

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last updated: January 12, 2004

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