Telecom equipment shares surge
By Ted Chen, The China PostTAIPEI, Taiwan -- Shares of telecommunication equipment makers yesterday mounted a spirited rally across the sector, propelled by anticipated demand on the prospect of the fourth-generation (4G) mobile broadband network, with regulators set to commence bidding for operating licenses today.
September 3, 2013, 12:05 am TWN
Citing precedents in the North American and European markets, a surge of demand in equipment is anticipated from telecoms carriers during the early phases of a next generation network, said a Capital Group (群益投顧). By convention, procurement by telecoms carriers begins with client-premises equipment, followed by devices such as smartphones and tablets, said the analyst. However, with the majority of the bandwidth for bidding residing in the 1,800-megahertz and 2,600-megahertz range, telecoms carriers are likely to increase their number of signal stations to provide greater subscriber coverage.
Shares of telecoms equipment makers including Microelectronic Technology Inc. (台揚), Boardtek (先豐), and UMT (昇達科), surged yesterday on anticipated demand for signal stations equipment. Makers of smaller-scale signal station equipment makers, including Unizyx (合勤控), Alpha Networks (明泰), Serom (中磊), Arcadyan (智易), and Gemtek (正文), also saw marked upward movement during yesterday's trading.
Gains in the telecoms equipment making sector yesterday was led by Wistron NeWeb Corp. (啟碁科技), whose shares saw a 7-percent surge and closed at a one-year high of NT$60.3, while shares of Sercom and Unizyx rose by 4 percent and 3 percent respectively.
Client-premises equipment refers to a number of terminal devices installed and located at telecoms subscribers' premises, including routers, switches, and set-top boxes.
According to the National Communication Commission, 4G bidding will commence tomorrow for 12 segments of frequencies contained in the 700-, 900-, 1,800-, and 2,600-megahertz bandwidths.