The government's decision to introduce electronic toll systems (ETS) along freeways by Jan. 1, 2001, would create an order worth more than NT$12 billion for on-board- units (OBU) and road-side-units (RSU), according to the results of a local study.
Two years ago, the Ministry of Transportation and Communications (MOTC) commissioned the state-run Chunghwa Telecom (??華1q信) to study the feasibility of implementing the ETS along freeways.
Last year, Chunghwa Telecom selected five thousand vehicles and two toll stations to carry out tests for the project. The results showed the system to be effective with a 99 percent accuracy rate.
In response to the results, Lin Fong-cheng (林?正), minister of the MOTC, said yesterday that the ETS would be installed at all toll stations along freeways by Jan. 1, 2001. The ETS bidding guidelines, including purchase of OBUs and RSUs, would be finalized by the end of this year at the earliest, he said.
Both foreign and local companies will be allowed to bid for the RSU contract, but only local companies will be allowed to bid for the OBU contract.
"Taiwan's photo-electronic industry is well developed," said an official at Chunghwa Telecom. "The government wants to reserve this opportunity for local manufacturers to help them upgrade their industrial standards, " he said.
Manufactured by Austria's EFKON Co, the infrared ETS used in the experiment makes use of two expensive and exclusive technological developments, namely infrared transceivers and contactless integrated circuit cards.
As a result of their exclusiveness, it would cost local companies US$100 million to obtain authorization for OBU manufacturing, according to local press reports, as not long ago, Philips paid US$100 million to purchase the patent for the contactless integrated circuit cards technology. Such an expense would scare off local manufacturers interested in bidding, according to the reports.
In response to the reports, the Chunghwa Telecom official yesterday said that Chunghwa Telecom is negotiating with EFKON about the possibility of a US$1.75 million cooperation project. Under the deal, EFKON would retain the technology for developing several key components, but would allow local companies to develop the other parts of the product via technology transfers.
"We will also require EFKON to consider establishing a factory in Taiwan to facilitate the technology transfer if necessary," said the official.
According to the MOEA, the 12 toll stations along freeways will require 200 sets of RSUs. The Chunghwa official said the purchase involves an NT$2 billion business opportunity.
As for the OBUs, imported units cost NT$5,000 to NT$3,000 per unit. If they are produced by local companies, the price will be reduced to under NT$2,000, said the official. With five million cars registered in Taiwan, that would mean a business opportunity of more than NT$10 billion.
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