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CEO of Far EasTone not sure on outlook

September 19, 2002

Far EasTone Telecommunications said on Thursday it targets launching 3G mobile services in 2004 at the earliest - the latest indication that the island's mobile phone operators have become less optimistic about demand for the services.

A trial 3G service may be launched no earlier than in the second half of 2003, company chairman Douglas Hsu of FarEasTone said.

Hsu's timeline for Far EasTone's 3G rollout points to heightened caution by Taiwan's third largest mobile operator on a slowdown in the global telecommunication market. It is another warning signal that the onset of slower-than-expected demand may have arrived.

"Far EasTone wants to be a bit ahead and advanced...but with the economic weather and a 100% (mobile market) penetration rate (in Taiwan), we have to be definitively conscientious," Hsu said in an interview.

Hsu said Far EasTone needs to be cautious even though it will keep all lines open for 3G."

Far EasTone is one of Taiwan's five 3G mobile service licensees, which include the two biggest incumbents, Taiwan Cellular and Chunghwa Telecom. The two market leaders earlier this year already turned cautious about their outlook for 3G mobile services.

 


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