MOTC mulling 3G licenses

The Ministry of Transportation and Communications has reportedly decided to issue five licenses for third-generation (3G) mobile phone services in the fourth quarter of the year, the local media said yesterday, adding that both existing mobile phone service providers and new applicants can bid for the licenses.

The 3G licenses will enable broadband Internet service providers to transmit video, photographs and music over mobile phones at high speeds.

But ministry officials dismissed the reports, saying the ministry has yet to decide whether it will give out 3G licenses.

The report also said the winners would be allowed to pay the license fees -- estimated to be at least NT$12 billion -- in installments over 14 years after an initial payment equivalent to 10 percent to 20 percent of the total cost.

According to the report, Minister of Transportation and Communications Yeh Chu-lan (葉菊蘭) was briefed by the Directorate General of Telecommunications (電信總局) last Tuesday about the government's proposal on 3G licenses and had instructed the DGT to submit the proposal to the Executive Yuan next week for approval, noting that the opening for 3G services in Taiwan is already one year behind the US and European nations.

But the report indicates the ministry is likely to honor its earlier promise that the 3G licenses will be issued as scheduled by the end of the year.

However, some of Taiwan's mobile phone service operators and industry analysts feel the release of five 3G licenses will be too many for the domestic market.

Executives of Taiwan Ratings Corp (中華信評) said there should be no more than three 3G licenses issued with market values between NT$10 billion and NT$15 billion.