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Commentary: Will WiMAX mark a milestone for 90-year-old Tatung?

Tatung InfoComm, a WiMAX licensee for the southern region of Taiwan, is a subsidiary of Tatung Company, which celebrates its 90-year anniversary in 2008. Will the WiMAX license likely serve as a milestone for the 90-year-old firm to venture into a brand new business – the broadband wireless telecom service?

Being an old household appliances and IT company in Taiwan, Tatung has been considered as a rather conservative company. However, the ambition the company demonstrated in securing the WiMAX license surprised industry observers in Taiwan.

While some market observers are still concerned about the outlook for WiMAX, Tatung InfoComm is confident that wireless technology will find its way into mobile platforms such as MID (Mobile Internet Device) products, according to Peter Yen, president of Tatung InfoComm.

Since iPhone, which is a broadband wireless application platform, has been able to create a rally of support worldwide, there is no doubt that MIDs, which will be able to offer even more bandwidth, will be also become popular, Yen stated.

Mobile phones have helped customize voice communications, and WiMAX-enabled MID products will help accelerate customized data services through the Internet, Yen continued.

The rate of migration of communications technology from 2G to 3G and 3.5G progressed faster with each new-generation, and so the adoption of WiMAX technology is likely to be faster than that of 3.5G technology, Yen said.

In addition, since mobile data services are a brand new market other than voice-centric services, they will also bring in new business opportunities, Yen contended.

Since Tatung InfoComm does not operate other communications networks such as fixed-line, 2G or 3G, the company has to focus on WiMAX coverage, transmission quality and services to solicit its WiMAX subscribers.

It will not be necessary for Tatung InfoComm to provide all application services by itself, and instead it can cooperate with other service providers in a way similar to the cooperation between Sprint Nextel and Comcast, Yen pointed out.

With regards to the deployment of WiMAX service networks, parent Tatung Company currently operates a chain of over 200 service centers in Taiwan, which can be further utilized as retail channels for Tatung InfoComm.

Other subsidiaries of the Tatung Group such as Tatung System Technologies, a system integrator, can also assist Tatung InfoComm by developing customized products for clients, Yen indicated.

Also a participant of the Mobile Taiwan (M-Taiwan) Program, Tatung InfoComm has been actively building up its WiMAX networks in Kaohsiung and Pingtong Counties in southern Taiwan as well as in Hualien County in eastern Taiwan. Those networks will be transferred to commercial WiMAX networks later.

According to Tatung InfoComm's roadmap, the company is likely to launch its WiMAX service initially in Kaohsiung City and Kaohsiung County with coverage provided by 300-400 base stations.

In addition to the purchase of about 200 WiMAX base stations and related peripheral equipment from NEC earlier, Tatung InfoComm is expected to soon kick off new rounds of WiMAX equipment purchasing.

Although Tatung InfoComm has no plans to strive to be the first commercial WiMAX service operator in Taiwan, its fast deployment of WiMAX networks could eventually make the company the first commercial WiMAX operator on the island.

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