O'Konek: This probably comes back to the structure in Taiwan. Under the OTC rule, the government sets the listing price, but in the typical foreign markets the existing shareholders are able to set the price, basing on market value, not the government's formula. I think that's the main reason why many analysts say Far Eastone is undervalued.
TT: What are Far EasTone's China plans?
O'Konek: Today, under government regulations, our company will still focus on the Taiwan market; however, we are exploring the opportunity of transferring the platform, applications and content here to other Chinese markets. The [mobile] usage market in China is mostly influenced by Taiwan, then Japan and a little bit by Korea. It is not really influenced by Hong Kong or Singapore, because most of their content is still in English. So, we get the great potential opportunity to work with companies in China.
TT: What is Far EasTone's plan for 3G?
O'Konek: We are talking about launching 3G services in late 2003 or 2004. I think that will be factual once the auction is done and companies determine what is the best schedule. It will depend on the market readiness as well. Generally speaking, 3G networks are going to operate in the later half of 2002 and handset manufacturers will provide the first generation 3G phones by the first quarter of 2003.
Mobile service will be substantially better on 3G networks.
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