Taiwan Set to Launch 4G Telecom Era for US$3.3 Bn.
2013/12/19 | By Ken LiuTaiwan's National Communications Commission (NCC) is expected to issue interim permissions by the end of 2013 to Taiwan's six telecom-service providers with 4G service plans, which are estimated to cost the providers at least NT$100 billion (US$3.3 billion) for equipment spending in two years.
The six providers are Chunghwa Telecom Co., Ltd., Far Eastone Telecom Co., Ltd., Taiwan Mobile Corp., the Hon Hai Group-held Ambit Microsystems Corp., Asia Pacific Telecom Co., Ltd., and the Ting Hsin International Group-held Taiwan Star Cellular Corp., which will install some 40,000 4G cell towers plus support network and consumer-end equipment in two years to prepare rolling out the service sometime in the second half of 2014.
Chunghwa Telecom Co., Ltd., the island's No.1 telecom carrier by revenue, plans to announce contracts by the end of 2013 to purchase 4G cell towers, with an estimated to 5,000-6,000 towers to be bought in two years that have drawn attention from Ericsson, Nokia-Siemens, and Alcatel-Lucent.
Industry executives estimate a 4G cell tower to cost around NT$2 million (US$66,666) for both equipment and installation, while keeping an eye on Chunghwa's purchasing plan as it would be the island's first 4G purchasing contracts.
Including the 4G towers, Chunghwa aims to install 7,000 towers in five years, with 500 to be completed in the second half of 2014, during which the company plans capital expenditure at some NT$10 billion (US$333 million).
Far Eastone plans to install 3,000-4,000 towers in two years to cover at least half of the island's population within service reach.
Taiwan Mobile has begun installing support network for its 4G service, with capital expenditure for 2013 set at NT$13.5 billion (US$450 million), up around NT$1 billion (US$33 million) from 2012. Industry executives estimate the company's spending for 2014 to hit new high.
Ambit executives point out that the company will install 6,000 4G towers in two years without immediate plans to introduce the service.
Asia Pacific Telecom executives say the company will install 3,000-4,000 towers in two years.
According to senior government officials, the sizable proceeds received for the bandwidths allotted will be used to accelerate infrastructure investment so that the providers can roll out the service as scheduled. (KL)
4G Investments by Taiwan's Telecoms Over Next Two Years
| Company
| Radio Bandwidth
| Bidding Fee
| Investment Project
|
| Chunghwa
| 35MHz
| NT$39.0bn
| 5,000-6,000 tower installations
|
| Far Eastone
| 30MHz
| NT$31.3bn
| 3,000-4,000 tower installations
|
| Taiwan Mobile
| 30MHz
| NT$29.0bn
| N/A
|
| Ambit
| 20MHz
| NT$9.1bn
| 6,000 tower installations
|
| Asia Pacific Telecom
| 10MHz
| NT$6.4bn
| 3,000-4,000 tower installations
|
| Taiwan Star Cellular
| 10MHz
| NT$3.6bn
| 4,500 tower installations
|