Taiwan approves 3G license auction plan

Taiwan has the highest mobile phone penetration rate in Asia

In this story: Asia's first 3G services start this week DoCoMo has stake in potential bidder RELATED SITES

By Staff and wire reports

TAIPEI, Taiwan -- Taiwan's cabinet has approved a plan to auction five third-generation wireless communication licenses.

The transportation and communications ministry said on Monday it will begin taking applications in July, with a close-off in October.

Third-generation wireless technology enables mobile phone users to have high-speed Internet access, streaming video and CD-quality music.

But recent auction results in Australia and Singapore for 3G licenses have not matched the vast sums paid in 2000 by bidders for European licenses, at the height of the dotcom boom.

Asia's first 3G services start this week

The first 3G services in Asia will start this week in Japan, when NTT DoCoMo launches its introductory service on Wednesday, ahead of a full-service launch in October.

Taiwan is one of the most advanced telecommunications markets in Asia, with the region's highest penetration rate of 80.2 percent for mobile phones. At the start of this year, Taiwan had 17.9 million mobile phone subscribers and 4.65 million Internet users.

Potential bidders for the 15-year licenses include state-run Chunghwa Telecom and mobile phone operators such as Taiwan Cellular, Taiwan's biggest wireless service firm, and rival Far EasTone, which is part of the Far Eastern Textile group.

Other contenders are the Tsai family's Lin Yuan Group -- the parent of Cathay Life Insurance -- and KG Telecom, the mobile phone service arm of the Koos Group.

DoCoMo has stake in potential bidder

DoCoMo took a 20 percent stake in KG Telecom last November and said it was keen to introduce its I-mode service to Taiwan.

According to Reuters, the communications ministry is undecided about whether to set a floor price for the auction.

"We plan to start reviewing qualifications of the applicants in October, conduct the auction in November, and announce the winners in December," the official said.

Chunghwa Telecom
Far EasTone
KG Telecom
Taiwan Cellular

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