TAIPEI, Taiwan—Taiwan’s third-generation (3G) license auction is under way, with the five licenses offered expected to bring just above the minimum bids. The auction is the first in Asia to attract more bidders than available licenses.
Six companies have showed interest in the five licenses, which should be awarded by the end of the month. Minimum bids range from US$120 million to US$220 million depending on the amount of spectrum available.
Seven consortia originally said they would begin the bidding process, but KG Telecom dropped out of the running in December. Incumbent operators Chunghwa Telecom, Far EasTone, Taiwan Cellular and Fitel, through the 3GO consortium, are participating in the auction, along with two firms without current wireless networks in Taiwan, Taiwan PCS Network and Eastern Broadband Telecom. Fitel operates a PHS network in Taiwan.
The auction will end when there are no new bids. On 16 January, license E was the only license with bids from more than one company. 3GO and Eastern Broadband Telecom traded bids for the license, and both companies are likely to roll out cdma2000 technology, according to international press reports. However, on Thursday, 3GO focused its efforts on license B, forcing Far EasTone, the license’s original bidder, to up to its bid to US$131 million.
Taiwan has a mobile penetration rate of more than 90 percent, and consolidation is expected.
Hong Kong scrapped an auction after it received only four bids for four licenses. Japan and Korea awarded their 3G licenses through a “beauty contest” process.
