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  • Taiwan Firms Set Up 'Dream Teams' for New Telecom Business
  • October 15, 1998 (TAIPEI) -- Taiwan's Ministry of Transportation and Communications (MOTC) plans to open a fixed communication network service to the private sector in early 1999.
    In preparation, several prestigious companies here have been cooperating and setting up joint ventures to compete for the business, which is expected to be one of the most promising of the 21st century.

    The enthusiasm shown by big companies here has been as fierce as that seen during the bidding for the Taiwan High Speed Rail (THSR) program, which is now the largest BOT (build, operate, transfer) project in Taiwan.

    Just as they did for the THSR bidding, big companies here are forming alliances and working hand in hand in an attempt to strengthen their power in technology and funding.

    Big names that are interested in the fixed communications network service include companies that have already been involved in mobile phone service, such as Pacific Telecommunications System Co., Ltd., Far EastTone Telecommunications Co., Ltd., KG Telecom, Tuntex Group and Goldsun Group. Taiwan Rebar Group, a heavyweight in the local cable TV market, has also expressed great enthusiasm towards the business.

    In addition, companies that have begun operating second-line telecom services, such as Shin Kong Group, First International Computer Inc., Kinpo Electronics Inc., Chinese Petroleum Corp. and Taiwan Power Co., are also seeking opportunities.

    Almost all foreign heavyweights in the telecommunications business have also been seen tapping the new market in Taiwan. AT&T; Corp., WorldCom Inc., MCI Communications Corp., Southeast Bell, GTE Service Corp., as well as telecom giants in Germany, the UK and Canada, have all contacted Taiwan firms regarding cooperation programs.

    Among them, Southeast Bell has listed Taiwan as one of its 10 major investment targets, and GTE has also signed a letter of intent with Taiwan's Ministry of Economic Affairs for a strategic alliance.

    A Canadian firm has indicated plans to work with Taiwan's KG Telecom.

    (Commercial Times, Taiwan)

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    Updated: Wed Oct 14 17:55:53 1998 PDT