4G licensing to bring treasury expected NT$30 bil.

By Ted Chen,The China Post

TAIPEI, Taiwan — The National Communication Commission (NCC, 國家傳餔委員會) yesterday approved a draft governing the release of licenses for the next generation of mobile bandwidth, which is expected to bring in over NT$35 billion to the treasury.

According to the NCC, the target revenue for the release of licenses for the next generation of mobile bandwidth technology, commonly known as 4G, was originally set at NT$30 billion by the Legislative Yuan during the budget process, but was later increased to NT$35 billion. The NCC said actual revenue contributions may only be determined at the conclusion of the 4G license release.

A conference explaining the specifics of the upcoming 4G license release-scheme will be held on Friday, March 22, with regulatory guidelines and a base price to be announced in June and September, respectively, said the NCC, while indicating that the bidding process will be completed by November.

Current guidelines indicate that cross-shareholding among all prospective bidders may not exceed 15 percent, according to reports.

According to estimates by the Taipei Computer Association (TCA, 北市電腦公會), the infrastructure required for the 4G network will amount to expenditure of NT$150 billion in assets and labor. However, due to technological limitations most of the solutions will be provided by foreign companies, while Taiwanese firms can expect to benefit from 40 percent of the NT$150 billion set for 4G infrastructure. Specifically, the migration toward the new 4G network will require a variety of base transceiver stations (BTS), numbering (check) at 2,800, 3,800, and 6,000 for the respective bandwidth frequencies of 700Mhz, 900Mhz, and 1800MHz, according to the TCA.

Meanwhile, telecommunication carriers expect expenditure to outstrip the TCA’s estimated NT$150 billion.