Taipei Times: As the nation's first 3G operator, Asia Pacific Broadband Wireless Communications (
Rock Hsu (
PHOTO: CHEN JUNG-FENG, TAIPEI TIMES
That opening-up [which will allow local mobile users to switch telecom operators while keeping their original numbers] will give start-up telecom operators like Vibo a good chance to snare users from the nation's three major players, including state-run Chunghwa Telecom Co (
After the new policy takes effect, users will have more choices, without the bother of updating new phone numbers with friends.
With good voice quality, sufficient digital content and optimized wireless coverage, we are confident in luring one million subscribers in the first year after the launch.
In addition, the handset problem, which has capped Asia Pacific Broadband's business last year, is resolving. We have numerous handset suppliers from South Korea, Europe and the US. And we also hope that Compal Electronics will start making our own 3G handsets next year.
With the macro environment improving, we hope Vibo can break even within two years of starting operations.
TT: The government has not yet decided about an auction of 3G licenses based on CDMA2000 technology. Will the license problem hamper Vibo's commercial launch by year's end as planned?
Hsu: Of course, we hope that the government will auction off licenses. We're very interested in making an offer. But Vibo will only be able to commercially launch by the end of the year if the problem is resolved by October. We can start operating as soon as we get the license. We have already scouted 4,000 sites around the nation for a planned 2,000 to 3,000 base stations. And we have been in discussion with telecom equipment suppliers. All we need now is a CDMA2000 license.
TT: Any backup plans? Is consolidation with industry also-ran Asia Pacific Broadband one of your options?
Hsu: We will not rule out the possibility of a strategic alliance in order to unveil 3G service. There is the possibility that Vibo may rent part of Asia Pacific Broadband's frequency channel for the launch, but only if the government stubbornly resists issuing us [another 3G licence.]
Since Vibo also has a 3G license based on WCDMA technology, we will keep our operations flexible. According to the government's rules, we can keep the license for 15 years after receiving it through an auction in early 2002.
TT: Why switch to the CDMA2000 standard, which only the company Asia Pacific Broadband has adopted, instead of the WCDMA system used by Taiwan's three major telecom carriers?
Hsu: More than two years ago, we opted for high-speed WCDMA technology because we thought it would be a natural move for GSM system operators -- which made up a hefty 60 percent of the world's 120 million mobile subscribers -- to transit to next-generation mobile services.
Things are changing over time. We believe, according to our survey, that CDMA2000 technology has outpaced WCDMA in terms of stability and become the world's most widely adopted 3G technology.
In addition, we also found that transition of 2G telecom operators using GSM systems has not gone as smoothly as we had thought.
Furthermore, handsets enabling multimedia functions on WCDMA technology are simply too bulky and too heavy to lure users to sign up to faster mobile services -- not to mention short battery life and spotty coverage.
In the CDMA2000 camp, mobile wireless services providers in Japan and South Korea are making quite a good transition. Take KDDI Corp, Japan's No. 2 mobile operator. It garnered 6 million users in the first year after launching its data-oriented 3G service package called "Au." KTF Co of South Korea also set another good example.
TT: Some industry watchers have a bearish outlook about 3G services, saying that the growing hotspots using so-called wireless LAN technology could outshine the comparatively pricey 3G technology. Can you comment on that?
Hsu: We think wireless LAN technology can play a complementary role to 3G networks, which have greater mobility.
People can access e-mail, play games, or browse the Internet through their cellphones, in their offices, at home or in restaurants.
In Japan, we already see people busy working on their mobile phones on the MRT. When they get to a coffee shop with a "hotspot," they can take out their laptops and do the same things as they were doing on their mobile phones.
We believe Taiwan will follow that trend, too.
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