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Taiwan WiMAX operators consider joint procurement plans

Six Taiwan service providers with WiMAX licenses are mulling joint equipment procurement in a bid to minimize costs, says a report in the Taiwan Economic News. A decision is expected to be announced next month.

The providers - Far EasTone Telecommunications (FET), First International Telecom Corp., Global Mobile Corp., Tatung InforComm, Vastart Cable TV Network Co., Ltd. and VMAX Telecom - hold 2.5 GHz spectrum licenses in either the north or south regions of the country. A majority of the providers support the concept of improved bargaining power and volume pricing from equipment vendors. One operator executive commented that a WiMAX base station would cost around US$62,500. The collective group of providers estimate need for 15,000 WiMAX base stations, which would cost an estimated US$937 million. The group thinks that price can be cut in half if they purchase as a single entity.

Read about Taiwan’s pooling of WiMAX operator buying interests at WiMax.com.