WiMAX consolidation underway as Vee (TIME) moves to buy VMAX

26 Sep 2011

Taiwanese WiMAX service provider Vee Telecom (TIME) says it will buy 100% of fellow operator VMAX Telecom for TWD1.45 billion (USD49.1 million), marking the first concrete steps towards much needed consolidation in the country’s crowded WiMAX market. The Taipei Times notes that the takeover will allow Vee Telecom to provide nationwide coverage – another first for the country. Under the terms of a filing submitted to the Taiwan Stock Exchange on Saturday, Vee, which provides WiMAX services in the Greater Taichung region, will acquire 200 million VMAS shares at TWD7.25 per share. The board of Vee Telecom approved the plan ahead of the filing – in the process agreeing to expand an earlier plan under which it would have acquired a roughly 50% stake in its rival. The takeover of VMAX reduces the number of WiMAX players in the country from six to five. The paper reports that as at 31 March 2011 there were a total of 58,300 WiMAX subscribers in Taiwan, casting doubt over the long term viability of the technology and prompting the chairman of the Taipei Computer Association, J T Wang to urge existing operators to merge for greater economies of scale.

Taiwan, VeeTIME, VMAX Telecom