Chunghwa Telecom (
Currently Taiwan is dominated by GSM cellular technology, which is common in Europe. CDMA is the cellular standard popular through most of the US.
The company plans to spend up to NT$10 billion on buying the CDMA system, which it is claimed can deal with 1.6 million phone users at a time.
The deal is expected to be completed in three stages over the next five years.
So far, several major mobile phone manufacturers, including Ericsson, Motorola and Nortel Networks have shown strong interest in the bidding process.
To take the lead in introducing CDMA technology, Chunghwa Telecom plans to sell handsets in the domestic market with CDMA technology next July.
Ths is a first for Taiwan mobile phone companies who are introducing CDMA technology, which is said to have clearer signals and faster transmission speeds than the current GSM system.
CDMA, or Code Division Multiple Access, cellular telephone systems allow "multiple access," meaning that multiple, simultaneous users can share a common pool of radio channels.
When implemented in a cellular telephone system, CDMA technology offers numerous benefits to cellular operators and their subscribers, including: four to five times the capacity of a GSM system; improved call quality; enhanced privacy and improved coverage characteristics -- allowing for the possibility of fewer cell sites.
Chunghwa Telecom hopes to capitalize on the strengths of the new system and the massive popularity of cellular phone use in Taiwan.
In related news, Taiwan's GVC Corp will begin manufacturing mobile phones after winning an order from a US company to manufacture CDMA handsets. Output this year is expected to reach 200,000 units, the Economic Daily News reported, citing GVC Vice President Huang Meng-hua.
Competitor, Compal Electronics Inc, plans to sell CDMA handsets starting next month. Barring any component shortages, the company hopes to make 600,000 units this year.
Acer Peripherals Inc and DBTel Inc expect to begin selling CDMA handsets at the end of this year, the paper reported.
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