TAIPEI, Taiwan-Low-tier mobile phone service in Taiwan was opened to competition by the country’s Ministry of Transportation and Communications, with a tender announcement expected by December and commercial service rollout by March.
The Taiwan Directorate General of Telecommunications under the MOTC has adopted an official technology-neutral policy, and has pledged to allow the free market to determine which low-tier technology ultimately will prevail, said the American Institute in Taiwan, a non-profit organization whose commercial sector helps U.S. companies export goods and services there.
In addition to Cordless Telephony Generation 2, which already is being used in Taiwan, other low-tier systems include the American standard, Personal Access Communications System; the Japanese standard, Personal Handyphone System; and Digital European Cordless Telecommunications. PACS employs Frequency Division Duplex technology, while DECT and PHS are based on Time Division Duplex technology.
The DGT has allocated spectrum to accommodate each technology. Four island-wide licenses will be awarded, and one will be reserved for the CT-2 service provider so it can upgrade and replace its outdated network. CT-2 service has been desperately unsuccessful, signing up only 50,000 subscribers since December 1994, according to a U.S. Commerce Department report.
The license application process includes a formal review and performance bond requirement. The licenses are in the 1885 MHz to 1895 MHz and 1905 MHz to 1915 MHz bands for TDD; the 1895 MHz to 1900 MHz and 1975 MHz to 1980 MHz bands for FDD; and the 1900 MHz to 1905 MHz, and 1980 MHz to 1985 MHz bands for FDD.
While Code Division Multiple Access technology falls within the frequency range of the DGT’s allocated spectrum, it requires higher transmitting power than the proposed specifications, and is therefore incompatible with the present measure. AIT Comm reported it will track the issue closely and “engage its advocacy resources as needed” to persuade DGT to adjust its specifications.
China Rebar Group, the predominant cable TV operator in Taiwan, has expressed interest in providing low-tier CDMA services. First International Telecom, a private paging network operator, also has expressed interest in bidding for a low-tier license using CDMA technology. Pacific Group, a private 1800 MHz GSM operator which also is the only CT-2 provider, and an Iridium L.L.C. partner, also have expressed interested in a license to replace the CT-2 network, the report from the Commerce Department says.
Low-tier technologies provide lower mobility, smaller cell coverage and lower transmission power. They are designed to provide mobile services at one-fourth to half the cost of high-tier services such as GSM.
