The National Communications Commission (NCC) on Sunday said it would hold an administrative hearing to determine if Global Mobile — the nation’s sole WiMAX service provider — should qualify for a license renewal.
It would be the first time the commission holds an administrative hearing to determine if a telecommunications provider should be permitted to renew its license.
The announcement came 10 days after the commission ruled to nullify Global Mobile’s proposed changes to its business plan because the company failed to deliver what it had promised before a deadline.
Chen Wen-liang (陳玟良), a specialist at the commission, said the company has been giving problematic statements in media interviews.
The hearing would give Global Mobile an opportunity to present supplementary information to support its case, Chen said, adding that the company had been given many chances to provide such information.
The commission on Sunday released a statement dismissing the company’s claims.
Unlike 3G or 4G operators, WiMAX service providers did not acquire their licenses through a competitive bidding process, the commission said.
Instead, applicants received their licenses by paying a fee of NT$210 million (US$6.45 million at current exchange rates), which was payable over six years, as an incentive for supporting a government policy of developing WiMAX services, it said.
“The [WiMAX] carriers were specifically told that the offer came with responsibility as well as risks,” the commission said.
“They must fulfill the commitments that they made in their business plans. The licenses are valid for only six years. When the licenses expire, they have to apply to renew them, and the commission would check and see if they have followed their business plans and how they plan to develop their business after securing a new license. After license renewals, the commission has the right to adjust the concession fees for WiMAX carriers based on market mechanism,” it added.
The commission dismissed Global Mobile’s accusation that it spent more than two years discussing whether WiMAX operators should be allowed to upgrade their technology, adding that the company included the time it spent providing supplementary information requested by the commission and correcting mistakes in its application procedures in the calculation.
“Making such an accusation will not change the fact, nor will it change the legal status of the company,” the commission said.
The company said that building small cells is the key to upgrading the information industry, but the commission said it found that Global Mobile had only built 647 base stations between 2009 and this year.
The company had proposed changing its business plan by building 2,159 small cells, but failed to live up to its promise, the commission said.
The commission said it has begun reviewing the company’s application for license renewal, but the company has yet to submit all the information it requested.
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