NCC blocks further CHT investment in Global Mobile

26 Mar 2008

Taiwan’s telecoms watchdog the National Communications Commission (NCC) has blocked Chunghwa Telecom’s proposed investment in WiMAX licensee Global Mobile. Chunghwa, which owns 14.5% of Global Mobile, had hoped to invest TWD160 million (USD5 million) for an additional 14.9% stake. The NCC blocked the move citing competition reasons. ‘Such a stake by Chunghwa Telecom in Global Mobile would be unfair to other telecom firms that won WiMAX permits,’ an NCC official said. Global Mobile was one of five winners of WiMAX licences last year, while Chunghwa Telecom missed out altogether. The telco is now said to be considering its options, which include selling its existing 14.5% stake and exiting the company altogether. The ruling also left Global Mobile on uncertain ground as it must increase its capital base to meet the minimum requirements set by the NCC. According to reports, Global Mobile chairwoman Rosemary Ho has injected TWD41 million (USD1.36 million) into the company to maintain its minimum capital. The company said it will continue to look for other investors.

Taiwan, Chunghwa Telecom, Global Mobile