TCC scales back 3G deployment

28 Jul 2004

Taiwanese mobile operator Taiwan Cellular Corp (TCC) says it is slowing its rollout of next-generation 3G mobile services as a result of ‘lukewarm demand’ for the technology. Cheng Hui-ming, chief financial officer of TCC, said that ‘as demand from mobile users is still very limited at this stage, we don’t think there is the urgency to deliver high speed cellular services with 3G technology’. The cellco is cutting the number of base stations it plans to deploy in 2004 from 1,500 to 1,300, saving the company TWD112 million in capex, but threatening to delay the commercial launch of UMTS on the island. Yesterday TCC posted quarterly net profit of TWD3.59 billion, down 23% on the first quarter of the year. Separately, it has also signed a formal agreement with Teco Electric and Machinery to buy MoBiTai Communications; the smaller cellco has approximately 700,000 subscribers.