Shin Kong Group out of contention in 4G bid
By Ted Chen, The China PostTAIPEI, Taiwan -- A regulator yesterday announced that a subsidiary of the Shin Kong Group (新光集團) has been disqualified from an ongoing auction for operating licenses for the fourth generation (4G) mobile broadband network, as it has exceeded its limit in forfeiting offers over the past six days of bidding.
September 11, 2013, 12:11 am TWN
The National Communications Commission (NCC) stated that the company had forfeited four opportunities to offer a bid over the 53 rounds of bidding that took place over the past six days, resulting in its disqualification from the auction.
A deposit of NT$1 billion will be returned to the company, said the NCC, noting that bidding will continue with the remaining contenders.
The Shin Kong Group is among two other non-telecoms carrier companies vying for a 4G operating license, and the first to be disqualified from the auction.
The other non-telecoms carrier companies in the race for 4G are the Star of Taiwan (台灣之星), a subsidiary backed by the Ting Hsin International Group (頂新集團), and Ambit Microsystems Corporation (國碁電子), a subsidiary backed by the Hon Hai Group. Previous reports pointed to rumors that the Foxlink Group (正崴集團), headed by Gou Tai-chiang, intends to collaborate with Taiwan Star.
Gou Tai-chiang is the younger brother of Terry Gou, chairman of the Hon Hai Group. The reports have since sparked speculation over the motives of the Gou brothers in launching independent initiatives in their 4G pursuits.
Over the past six days of auctioning, the A4 block in the 700MHz spectrum accumulated NT$7.11 billion in bids, the B3 block in the 900MHz spectrum NT$2.165 billion, and blocks C1 to C5 in the 1,800Mhz spectrum NT$28.515 billion, according to the NCC.
Bidding is expected to conclude after one month.
On news of its subsidiary's disqualification, shares of parent company Shinkong Synthetic Fibers Corporation (新光合成纖維) tumbled 1.22 percent, or NT$0.13, at the end of yesterday's trading and closed at NT$9.85. Concurrently, the company recorded a 9.93-percent month-on-month decline in revenues for August.
The Shin Kong Group did not issue any statement explaining the circumstances of their disqualification from bidding.