Taiwan Expected To Issue 3G Licenses In December

date: 15th February 2001

Taiwan plans to issue licenses for third generation mobile phone networks in December, an official at the Directorate General of Telecommunications said Thursday.

However, the Cabinet has yet to decide whether to auction off the three to five licenses or hold a "beauty contest" and issue them on the basis of merit, the official said.

Although one study favored a multi-stage auction, which could raise much more money, the DGT's own team has recommended issuing the licenses based on the qualifications of the applicants, she added.

The government is expected to finalize regulations covering the 3G licenses in March, with the selection process likely to take place in October, the official said.

Most mobile players favor issuing licenses based on merit - as it would lower their costs considerably compared to an auction - though some industry experts believe the government may opt for the latter given the potential windfall it could bring to government coffers.

Taiwan currently has four island-wide mobile operators, including state-run Chunghwa Telecom (Q.CTE) and the island's biggest operator, Taiwan Cellular Corp. (Q.TCE), as well as two regional operators.

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