Taiwan 3G Mobile Network to Launch 3G in June 2003

date: March 18, 2002

Taiwan 3G Mobile Network, formerly known as Taiwan PCS Network and a start-up mobile operator recently licensed to operate 3G services, said it will roll out 3G services in June next year, despite doubts expressed by other operators.

Those services will come at a cost of no more than NT$1,200 a month, he added.

"Other operators may cast doubt on such plans, but let them," the CEO said. "We'll just do our job."

According to Wu, it is often the underdogs, such as his company, that move forward the newest technologies. He said leading mobile operators including Chunghwa Telecom, Taiwan Cellular and Far EasTone Telecommunications all of them winners of a 3G license may be reluctant to launch 3G services. The reason: their operating cost to run 2G services will double once they step into the 3G arena.

"With revenues likely staying the same, and rising operating cost, their profits will definitely be affected," Wu stated. "Whereas we don't have to worry about those burdens."

The Taiwanese auction concluded with five companies deciding to bid for licenses allowing them to offer 3G services.

The auction ended when 3GO, a newcomer to the mobile telecoms market, dropped out of the bidding. In what has been the most competitive auction in recent months, the bidding has sky-rocketed over 45 per cent from the floor price, and has finally reached a new total of about TWD49bn (EUR1.92bn). The winners were: Chunghwa EUR336.8m, Taiwan Cellular EUR340.5m, Yuan-Ze Telecom EUR336.5m, Taiwan PCS EUR255m and Asia Pacific Broadband EUR350m.

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