The Taiwanese telecommunications industry regulator is keen to follow the trend of other industrialized countries in what it sees as an essential portal for future growth and development. Under the DGT’s proposals telecom companies could initiate the first round of bids by October this year.
The Telecoms Ministry and the Taiwanese cabinet however must first ratify this initial step, which is far from certain, in view of the fierce opposing opinions about how the auction should be conducted. Originally the licenses were to be awarded in April but the process was delayed due to the vociferous nature of debate within the government. Regulators originally favored a beauty parade process, but new plans had to be devised to avoid any charge of favoritism being shown by the government.
The new plans by the DGT recommend a multi-round auction to gain maximum revenue, while telecom operators are striving for a single round sealed bid contest.
Like many governments, the Taiwanese administration is already making plans for the 3G money, which it does not yet have. This continues a trend with central European countries, such as Croatia and Slovakia, desperate to cash-in on the windfall income from 3G license disposal. It is a dangerous: In both Europe (France and Poland) and Brazil there has been a distinct lack of enthusiasm from companies to commit the sums of money seen in the British and German process. It is indeed difficult for the Taiwanese government to look confident about gaining the maximum possible revenue whilst also not overestimating in its proposed financial expenditure. The industry will look-on to see if a suitable balance can be attained.
