Gou to partake in 4G license bid examination
By Kathryn Chiu ,The China PostTAIPEI, Taiwan -- To win 4G mobile communications licenses in Taiwan, business heavyweights including Hon Hai Precision Chairman Terry Gou and Chunghwa Telecom Chairman Yen-sung Lee will personally sport their 4G technologies for the government to review next Monday.
August 10, 2013, 12:08 am TWN
National Communications Commission (NCC,國家通訊委員會) on Friday announced that an examination session will be held on Aug. 12. The NCC said the session will help decide qualified bidders for open-bids on Sept. 2 for 4G long-term evolution (LTE) licenses, the new standard for wireless communication of high-speed data for mobile phones and data terminals.
NCC said, after examining the qualifications, that it will announce the final list of applicants qualified to participate in subsequent open-bids on Aug. 15 and rehearse its open-bid on Aug. 20.
The NCC is scheduled to release a total of 270MHz of frequency spectrum in the 700MHz, 900MHz and 1800MHz bands for the 4G LTE service, according to an Executive Yuan announcement at the end of 2012.
The licensing procedure involves two stages. First, the NCC will finish the qualification review by the end of August. Then, the bidding process will start at the beginning of September after the declaration of qualified bidders. The final result is expected by the end of 2013.
Apart from Terry Gou (郭台銘) and Yen-sung Lee (李炎松), other tycoons including Wei Ying-chiao (魏應交), chairman of a potential bidder funded by Ting Hsin Group, Far Eastern Group Chairman Douglas Hsu (徐旭東) and Asia Pacific Chairwoman Sophia Chiu (邱純枝) are expected to present themselves at the examination session to be conducted next Monday.
Since the bidding price is the most important factor at the 4G LTE license open-bid auction, analysts believe that there's a high likelihood that all of the seven applicants will pass the examination unless their technologies come across as unimpressive.
After the call for applications of 4G Telecommunications Services Licenses from May 5 to July 1, seven applicants emerged: Chunghwa Telecom Co, Taiwan Mobile Co., Far Eastone Telecommunications (FET) Co., Asia Pacific Telecom Co., Ambit Microsystems Corp. and two other companies backed by Ting Hsin International Group and Shinkong Group.
The NCC in May set the base price for the 4G LTE auction at NT$35.9 billion and a tentative date of December 2013 for the allocation of Taiwan's first 4G LTE licenses.
Based on the commission's rules for the bidding, a bidding unit contain 5MHz. Each bidder can bid for no less than 10 MHz and no more than 35MHz, and the rule applies to both upstream and downstream spectra. The commission estimated four to seven 4G licenses could be issued.