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Taiwan WiMAX licensees voice concerns over WiMAX prospects

The planned commercial operation of WiMAX services in Taiwan now looks bumpy as two WiMAX licensees have voiced concerns over the business outlook for the industry.

Far EasTone Telecommunications (FET), a WiMAX licensee for the southern region of Taiwan, is now more conservative about the prospects of the WiMAX industry due to higher-than-expected prices for WiMAX base stations and CPE (customer premise equipment) products, according to Chen Li-jen, vice president of FET.

In addition, WiMAX networks may not be suitable for metropolitan areas because WiMAX signals will be cut off by the glass windows of skyscrapers, Chen said, citing internal data. Chen made the remarks at a seminar sponsored by the Taiwan-based Chung-Hua Institution for Economic Research (CIER).

Tatung InfoComm, also a WiMAX licensee for southern Taiwan, has estimated that it will probably take about eight years for a WiMAX operator to reach breakeven. This is too long and entails a great investment risk for the operator, said company vice president Yeh Yuan-sen, who also attended the seminar.

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