Taiwan NCC rejects CHT investment in licensed WiMAX operator Global Mobile
Taiwan's National Communications Commission (NCC) has rejected Chunghwa Telecom's (CHT's) application to invest over NT$160 million (US$5.21 million) in WiMAX licensee Global Mobile.
The NCC rejected CHT's application on the grounds that it is against the principle of fair market competition and also against an NCC ruling which prohibits a WiMAX license applicant to hold more than a 15% stake in another applicant, according to an NCC spokesperson.
CHT was an applicant for the six WiMAX operating licenses awarded by the NCC in July 2007 but was outbid, noted the NCC spokesperson, adding that allowing CHT to join Global Mobile under such circumstances would not be fair to other applicants as CHT's projected investment would account for an almost 15% stake in Global Mobile.
CHT has announced that it will withdraw its investment in Global Mobile following the NCC decision.
The withdrawal of CHT capital will leave Global Mobile with a shortfall of NT$40 million it its plans to build its paid-in capital to NT$1 billion in order to meet the requirements set by the NCC for WiMAX licensed operators.
Global Mobile said that it will be able to secure additional funds from other investors to make up the shortfall before the deadline which expires at the end of this month.
source
The NCC rejected CHT's application on the grounds that it is against the principle of fair market competition and also against an NCC ruling which prohibits a WiMAX license applicant to hold more than a 15% stake in another applicant, according to an NCC spokesperson.
CHT was an applicant for the six WiMAX operating licenses awarded by the NCC in July 2007 but was outbid, noted the NCC spokesperson, adding that allowing CHT to join Global Mobile under such circumstances would not be fair to other applicants as CHT's projected investment would account for an almost 15% stake in Global Mobile.
CHT has announced that it will withdraw its investment in Global Mobile following the NCC decision.
The withdrawal of CHT capital will leave Global Mobile with a shortfall of NT$40 million it its plans to build its paid-in capital to NT$1 billion in order to meet the requirements set by the NCC for WiMAX licensed operators.
Global Mobile said that it will be able to secure additional funds from other investors to make up the shortfall before the deadline which expires at the end of this month.
source
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