03.30.2001
MoTC to issue five 3G licenses

• Transportation and Communications (MoTC) has finalized its proposal for opening up the market to third-generation phone services. The proposal was drafted by the Directorate General of Telecommunications (DGT). The MoTC has decided to issue five licenses for 3G cellular phone services, with bidding slated for 4Q01.

• The license fee, estimated to be at least NT$12b, can be paid over 14 years following down payment. Existing mobile operators and new applicants may bid for the license. The plan will be submitted to the Executive Yuan next week for ratification, and details may be announced in 2Q01.

• While new entrants view the issuance of five licenses as optimal, existing players see it as overly generous. Singapore and Hong Kong are to issue four 3G mobile licenses. We believe existing mobile operators Chunghwa Telecom (2412 'Chung Hua Dian'), Taiwan Cellular Corp. (4901 'Tai Wan Da'), Far EasTone (unlisted) and KG Telecom (unlisted) are likely to all pick up licenses.

AngelLo@Primasia.com +886-[0]2-2547-8865