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4G Spectrum Auction Ends, Equipment Market War Open

Published: Nov 04,2013

For more than 40 days, the auction for Taiwan’s 4G LTE Spectrum blocks was came to an end and 6 companies-Chunghwa Telecom, Taiwan Mobile, Far EasTone, Asia Pacific Telecom, Taiwan Star Mobile Telecommunications (Ting Hsin Group) and the Ambit Microsystems Corp (backed by Hon Hai Group)-won bids to declare the kick-off 4G LTE services in Taiwan. Followed by the end of the auction, the 4G LTE market war is triggered and the opener is to strive for occupying more market share among Telecom equipment manufacturers.

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The winning bidders in Taiwan’s 4G spectrum have emerged. Chunghwa Telecom won the B2 block in the 900MHz frequency band and the C2 andC5 blocks in the 1800MHz frequency band, which was clearly the most desirable frequency in the auction. Far EasTone bagged 30MHz of bandwidth, having won the ‘A2’ block in the 700MHz band, and the ‘C3’ and ‘C4’ blocks in the 1800MHz band, while Taiwan Mobile Company also acquired 30MHz of new spectrum (‘A4’ block in the 700MHz band and ‘C1’ block in the 1800MHz band). Asia Pacific Telecom, CDMA2000 operator in Taiwan, won the bid for a 10MHz block in the 700MHz band (block ‘A1’). Rounding out the winners, Star of Taiwan and Ambit Microsystems Corp secured the 10MHz ‘B1’ block in the 900MHz band and 20MHz (‘A3’ block in the 700MHz band and ‘B3’ block in the 900MHz band respectively.

After the bid results revealed, the lay-out of 4G fundamental infrastructure is dawning and bring on the outbreak of business opportunities for procurement of 4G equipments, which has attracted many Telecom equipment manufacturers to compete on the 4G equipments market battlefield, including Nokia Solutions and Networks, Ericsson, and Alcatel-Lucent.

Nokia Solutions and Networks, obtained largest market share in Taiwan’s 3G network equipment, is the most active company and optimistic to be a big winner in this competition.

Markus Borchert, president of Nokia Solutions and Networks China, said that the volume of 4G equipments procurement will reach the high peak for the next 2 years and Nokia aim to have the biggest market share in 4G network equipment, while its 3G equipments are adopted by Chunghwa Telecom, Taiwan Mobile and Vibo now.

According to the understanding, after paying huge bid price, the 6 winners claim the equipment manufacturers on reducing price to save cost. Moreover, many 4G service suppliers, in order to cultivate local manufacturers, request equipment manufacturers to give priority to use Taiwan’s network equipment. Rumor has it that domestic products should be comprised of 40% of all equipment while the manufacturer received the Chunghwa Telecom’s order.

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