3G Licensing Ignites Interest in Taiwan's Telecom Industry

As Taiwan prepares to relax its 3G mobile telecom market, several foreign and local telecom firms are preparing to compete for 3G licenses.

The competitors in this field include Vodafone Group, the U.K.'s largest mobile phone network; Verizon, the global telecom firm formed by the merger of GTE and Bell Atlantic; as well as Japan Telecom; Hutchison Telecommunications Group; Pacific Century CyberWorks (PCCW) Ltd.; NTT DoCoMo Inc.; Taiwan Cellular Corp.; and three fixed network companies (New Century Information Co., Ltd.; Eastern Broadband Telecommunications Co., Ltd.; and Taiwan Fixed Network Co., Ltd.).

Even Taiwan's life insurance giant, Linyuan group's Cathay Life Insurance Co., Ltd. has shown an interest to enter this industry by linking up with Vodafone.

The low profile of Cathay Life Insurance as compared with Vodafone, shows the insurance giant's determination to move into the high-tech industry.

In fact, Cathay Life Insurance isn't Vodafone's only choice in Taiwan, as the U.K.'s telecom leader also is knocking on the doors of Taiwan Cellular Corp. and First International Computer Inc. To avoid losing an opportunity to strengthen its competitiveness in obtaining 3G licenses, Cathay Life Insurance seeks to take advantage of Vodafone's expertise.

The alliance formed by Japan's NTT DoCoMo and Taiwan's KG Telecommunications Co., Ltd. in November 2000 to seek a 3G license has led to a bandwagon effect in the global telecom industry. Vodafone, Japan Telecom, Hutchison Group and PCCW recently have initiated discussions to form partnerships with Taiwan-based companies.

Although the opening of Taiwan's 3G telecom market remains unclear, many companies seek to make an entrance.