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NCC rejects Chunghwa Telecom investment

"Chunghwa Telecom is not on the shortlist of potential investors in Global Mobile."

a National Communications Commission official

The National Communications Commission (NCC) threw a monkeywrench into Chunghwa Telecom Co's (中華電信) plans yesterday, rejecting its investment in WiMAX license holder Global Mobile Corp (全球一動).

Chunghwa must now pins its hope on the next round of WiMAX license bidding -- scheduled for next year -- to maintain its leading role in the nation's telecom industry.

Officials at the telecom giant were not available for comment as of press time yesterday.

"The commission disapproved Chunghwa Telecom's investment in Global Mobile as Global Mobile did not follow the fundraising proposals submitted last year," a NCC official overseeing the bid said by telephone.

"Chunghwa Telecom is not on the shortlist of potential investors in Global Mobile," he said, adding that the NCC had asked Global Mobile to reject Chunghwa's investment three months ago.

Chunghwa Telecom bought a 14.5 percent share of Global Mobile for NT$168 million (US$5.73 million) after losing its bid for one of the six WiMAX licenses auctioned last July.

The commission's decision means that Global Mobile must find another NT$40 million in capital by the end of this month to meet the minimum capital requirement of NT$1 billion.

In December, Global Mobile boosted its capital to around NT$1.13 billion -- including the NT$168 million from Chunghwa -- by selling new shares to investors such as wireless telecom equipment maker D-Link Corp (友訊科技) and chipmaker Davicom Semiconductor Inc (聯傑國際).

"We will raise enough capital on schedule," Global Mobile spokeswoman Irene Her (何詠碧) said by phone yesterday.

"We have followed the regulator's rules. We hope the government will provide more support to the WiMAX industry," she said.
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