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Taiwan networking equipment suppliers eager to bid for Japan WiMAX orders

Following Japan's announcement that Wilcom and KDDI have won 2.5GHz next-generation wireless communications services license, the substantial potential investment is drawing Taiwan networking equipment makers to bid for orders.

KDDI has started its deployment after securing the license and plans to budget 144 billion yen (US$1.07 billion) to establish its WiMAX network. Industry sources noted that the company has already entered discussions with select networking equipment suppliers about equipment specifications and volumes.

Fujitsu and Samsung Electronics are both said to be in talks with KDDI for potential partnerships and both are likely to become equipment suppliers. Since Fujitsu partners with some Taiwan chip designers, these partners may also see benefit accordingly. CyberTAN Technology, Delta Networks, Mototech and Universal Scientific Industrial (USI) are some of the companies that have partnerships with Fujitsu, the sources detailed.

Although Taiwan networking equipment suppliers are unlikely to land orders from these two operators directly, the sources noted that companies from Taiwan are aggressively looking for more details regarding the required equipment specifications through international networking companies.

Since KDDI plans to introduce related WiMAX services in summer 2009, KDDI is expected to confirm its equipment suppliers for first-phase deployment by late March, the sources estimated.

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