Taiwan Cellular Corp (
Over the weekend, Taiwan Cellular signed an NT$3.8 billion agreement with its subsidiary, Howin Technologies Corp (弘運科技). In the deal, Howin will purchase the 3G core and radio-access network equipment from Helsinki-based Nokia.
"Taiwan Cellular decided to link up with Nokia in introducing 3G services," said Sunny Chou (
She refused to elaborate on the contract details.
"The deal only applies to Taiwan Cellular's phase-one 3G roll-out plan in early next year," Chou added.
Based on the contract, Nokia will begin to deliver equipment in the first quarter of next year, while Howin will be in charge of the construction.
High-speed mobile Internet or 3G services enable users to enjoy advanced multimedia data services such as multimedia messaging, mobile entertainment as well as mobile location search services.
The government issued five 3G licenses in February, with bidding prices totaling NT$48.9 billion.
Far EasTone Telecommunications Co (
"We are negotiating with three bidders and we hope to seal deals by the end of this year," said Yvonne Li (
Both Nokia, Canada-based Nortel Networks Corp as well as Sweden-based Ericsson AB have joined the bidding for Far EasTone.
Li refused to disclose the bidding price, saying the final figure might not be far from Taiwan Cellular's.
Meanwhile, industry watchers said mobile companies are very conservative about introducing 3G services.
"The investment amount is very limited, demonstrating that companies only plan to launch trial-run services next year," said Alex Wu (吳興國), a telecom analyst at KGI Securities Corp (中信證券).
He added that mobile operators may have to invest at least NT$10 billion to establish a nationwide 3G network.
Another analyst also said mobile companies are not upbeat on rolling out 3G.
"With public demand for mobile data still low, operators now prefer to enter the 3G market at a much slower pace," said Lin Ming-nung (
He said that by the end of next year, mobile users may be able to access 3G services in major metropolitan areas such as Taipei, Kaoshiung and Taichung.
Nokia also won an NT$12 billion (US$345 million) contract from state-run Chunghwa Telecom Co (中華電信) for 3G network equipment in October.
Another bidder, Nortel Networks Corp, however, has filed a complaint opposing the deal and the government decided to order an investigation.
Chunghwa was forced to delay the selection of a winner of the contract until the investigation is concluded.
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