Commission sets base prices for 4G license auction

By Shelley Shan  /  Staff reporter

Thu, May 16, 2013 - Page 3

The government could make as much as NT$35.9 billion (US$1.2 billion) after auctioning licenses for fourth-generation (4G) services by the end of this year, the National Communications Commission (NCC) said yesterday.

The commission unveiled the base prices for the auction of frequency blocks — 700 Megahertz (MHz), 900MHz and 1,800MHz — that are to be released for 4G services, with the total amounting to about NT$35.9 billion.

Commission spokesperson Yu Hsiao-cheng (虞孝成) said that a total of 90MHz in bandwidth in the 700Mhz block would be released, with the base price topping NT$20.7 billion.

Meanwhile, 60MHz in bandwidth in the 900MHz block would be up for sale, with the total base price reaching NT$5.8 billion, Yu said.

In the 1,800MHz block, the base price estimated to total NT$9.4 billion, he said.

“The total base price for bidding for the 700MHz block is higher than those of the two other blocks because radio frequency transmission in the lower frequency block can go farther and penetrate deeper,” Yu said.

“So each megahertz in the 700MHz block costs NT$230 million, whereas each megahertz in the 900MHz and in 1,800MHz costs NT$96 million and NT$78 million respectively,” he said.

Yu said the commission had entrusted a research company with the task of evaluating a reasonable price for each frequency block, adding that the base prices were set by taking into account the base prices set in other countries, Taiwan’s consumer price index and other indigenous factors.

The commission added that it would hold seminars to explain the rules to interested bidders.

Bidding will start at the beginning of September.

The issuance of the 4G licenses is expected to be completed by the end of this year.