APBT planning WiMAX base stations in Taichung

Asia Pacific Broadband Telecom Co (APBT, 亞太固網寬頻), a local fixed-line company, said yesterday it was planning to build fourth-generation (4G), or WiMAX, base stations in central Taiwan, spearheading the move among local competitors into the new high-speed mobile technology.

The financially troubled company is planning to join the bidding for a WiMAX license next month and to spend NT$15 billion to NT$20 billion (US$450 million to US$600 million) to develop WiMAX services.

"Offering WiMAX service is our last chance to revive the company, but the risk is high in light of the massive investment needed," company chairman Springfield Lai (賴春田) told reporters on the sidelines of a signing ceremony with Avarion Ltd, an Israeli WiMAX and wireless broadband equipment supplier.

Local fixed-line companies have pinned their hopes on WiMAX business for a revival as the cutting-edge technology could help them extend their service to mobile users, instead of struggling in a market dominated by the nation's biggest telecom company, Chunghwa Telecom Co (中華電信).

With the aid of Avarion, APBT's plans to build 52 WiMAX base stations in the Taichung area to provide 90 percent coverage. The telecom firm plans to complete the project by the end of next year, Lai said.

Unlisted APBT plans to raise roughly NT$30 billion by selling new shares before the end of the year for WiMAX deployment, Lai said. The company is seeking overseas strategic partners through fundraising, he said.

Avarion said that spending on WiMAX equipment would amount to US$3 billion to US$5 billion by 2010 and would jump to US$10 billion to US$20 billion in 2015, with the Asia-Pacific area leading the growth.

Separately, the telecom company said it planned to file a lawsuit in Taiwan this week to counteract the legal action taken by Deutsche Bank over APBT's NT$6.8 billion loan from the German lender.

"We will assert that the agreement [with Deutsche Bank] is ineffective," Lai said.

In the board meeting scheduled for Friday, APBT will also propose a merger with its mobile affiliate, Asia Pacific Broadband Wireless Communications Inc (APBW, 亞太行動寬頻).

APBW is fully owned by the fixed-line company and a major revenue contributor for APBT.

APBW, the nation's sole operator providing 3G services on CDMA2000 -- a technology incompatible with the WCDMA technology adopted by other mobile service providers -- currently has around 1.5 million mobile subscribers.

APBT's move follows the recent trend of combining fixed-line and mobile business to create synergy. Last month, rival Taiwan Mobile Co (台灣大哥大) acquired a major stake in affiliate Taiwan Fixed Network Co (台灣固網), with plans to further expand its shareholding in future.