The National Communication Commission (NCC) of Taiwan has unveiled its 4G licensing plan, setting a base price of NT$35.9 billion ($1.19 billion).
Under the plan, the regulator will release a total of 270MHz blocks of spectrum on the 700-MHz, 900-MHz and 1800-MHz frequency bands for 4G services.
According to a NCC statement released on Wednesday, 90MHz blocks of spectrum in the 700-MHz band will be up for sale, with the total base price reaching NT$20.7 billion. Meanwhile, the base price for the 60MHz spectrum in the 900-MHz band and the 120MHz spectrum in the 1800-MHz band are set at NT$5.8 billion and NT$9.4 billion, respectively.
“The total base price for bidding for the 700-MHz [band] is higher than those of the two other blocks because radio frequency transmission in the lower frequency [band] can go farther and penetrate deeper,” The Taipei Times quoted NCC spokesperson Yu Hsiao-cheng as saying.
“So each megahertz in the 700-MHz [band] costs NT$230 million, whereas each megahertz in the 900-MHz and in 1,800-MHz costs NT$96 million and NT$78 million respectively,” Yu added.
The NCC said it began accepting applications for 4G auction from May 15, with submission period ending on July 1.
Bidding will start at the beginning of September. The issuance of the 4G licenses is expected to be completed by the end of this year, in line with the scheduled timeline the NCC announced last year.
Major telecom operators including Chunghwa Telecom, Far EasTone, and Taiwan Cellular have already expressed interest in the bid, while Wimax operators such as G1 and VeeTime are also reportedly considering participating in the 4G auction.
The regulator expects around 3 to 8 telcos will eventually join the bidding for the 4G licenses.