Taiwanese politicians have expressed concerns that the high prices operators are bidding for 4G spectrum could spell bad news for consumers and the auction winners themselves.
With total bids for 1800-MHz, 900-MHz and 700-MHz spectrum reaching as high as 8.3 times the auction floor price for some units, Taiwanese legislators fear that the winning bids will come in too high, the Taipei Timesreported.
During a committee meeting this week, legislators expressed concerns that operators may end up passing the high costs on to consumers, or cutting corners on infrastructure and operating costs to compensate. This could create security or network quality issues.
Regulator NCC has already declared that operators will not be allowed to source 4G equipment in China to avoid poor-quality gear.
The NCC has announced it expects the auction process to come to a conclusion soon.
Six companies remain in the running for blocks of 4G spectrum – Chunghwa Telecom, Taiwan Mobile, Far EasTone, Asia Pacific Telecom, Hon Hai affiliate Ambit Microsystems and companies backed by Ting Hsin International Group.
The auction commenced in early September. Seven participants were shortlisted to bid, but Taiwanese conglomerate Shinkong Group has dropped out.