NCC approves Vee Time’s investment in Tatung Infocomm, VMAX

6 Dec 2012

Taiwan’s National Communications Commission (NCC) has approved investments made in local WiMAX operators VMAX Telecom and Tatung Infocomm by rival wireless broadband provider Vee Time. However, according to the Taipei Times, Vee Time has been fined TWD200,000 (USD6,870) for failing to file the details of the investment with the administrative authority before carrying it out. With NCC spokesperson Yu Hsiao-cheng is cited as saying that the Commission approved the investment based on the Regulations for Administration of Wireless Broadband Access Business, and notes that in the wake of the investment, Vee Time will have acquired all of the shares in Tatung Infocomm, while it will also hold approximately 72% of VMAX shares.

While approval for the transactions has now been granted, Yu reiterated that Vee Time must still fulfil its own WiMAX obligations, including maintaining service coverage of 70%, stating: ‘We also reminded them [Vee Time] that, according to the Telecommunications Act, the Ministry of Transportation and Communications may adjust frequencies or request facilities upgrades by enterprises or users. Such adjustments or requests may not be refused, nor may compensation be demanded.’

Meanwhile, the NCC has also reportedly approved changes to guidelines governing installations of small, low-power cellular base stations, in a move that it has been claimed may help ease congestion on the country’s 3G networks. The Commission has said that each licensee will be permitted to build and operate ten small low-power base stations, with the regulator noting that both Chunghwa Telecom and Taiwan Mobile have already submitted applications to build such stations. Under the watchdog’s ruling, telecoms carriers however should not charge consumers for accessing wireless services provided by these small base stations.