Far EasTone Postpones WiMAX Plan

Taipei, Sept. 19, 2008 (CENS)--Affected by global financial turmoil, Far EasTone Telecom Co., Ltd. recently decided to move backward rollout of WiMAX service till the second half of next year, a delay for nearly one year.

Jan Nilsson, Far EasTone's president, pointed out that Taiwan is not likely to escape the financial storm currently sweeping the world. He expected the woe to complicate Taiwan's telecom service industry, which has appeared to recess, and estimated Taiwan's telecom-service industry would have hard times for many years.

In the first half this year, Taiwan's top three telecom carriers, including Far EasTone, saw their revenues from the service dwindle 1-2%, for the first time ever. Nilsson noted that service providers must work to boost their cost efficiency, which is not necessarily translated into cost slashing or R&D investment slowdown.

Far EasTone is the only of the three Taiwanese telecom carriers to win WiMAX license. The other two are Chunghwa Telecom Co., Ltd. and Taiwan Mobile Corp. Nilsson said his company would get its WiMAX service off ground from central Taiwan.

The government rules that license winners must start to offer service at least in one and half a year after acquiring the licenses, or see their licenses recalled. However, the government allows license winners to extend the delay in the event of hard times.