Asia Pacific expects 3G service to generate business for handset and content suppliers

Taipei, July 31, 2003 (CENS)--Asia Pacific Broadband Wireless Co., Ltd. Chairman L.T. Wang predicted that the launch of his company's third-generation (3G) cellular service would bring lucrative business opportunities to 3G handset and content suppliers in Taiwan.

Wang said his company plans to sign up 710,000 subscribers and earn revenue of NT$2.5 billion to NT$2.6 billion (US$71.4 million to US$74.2 million at US$1:NT$35) by the end of this year. He estimated his company would increase its subscriber base to 800,000 people and break even in February next year.

Asia Pacific's parent company, Eastern Broadband Telecommunication Co., Ltd., expects to have revenue of NT$7.3 billion (US$208.6 million) this year. The Eastern-held Internet service provider Asia Pacific Online plans to earn NT$150 million (US$4.3 million) on revenue of NT$1.8 billion (US$51 million) this year.

Wang estimated the three companies would generate a combined revenue of NT$11.6 billion (US$331 million) this year.

Wang said that his company would target its 3G service at Taiwan's 11 million home Internet users and two million corporate users. He said that his company's CDMA2000 3G system will offer quality audio and video services and provide business opportunities for handset and content providers.

Wang noted that his company has contracted Samsung Electronics and SK Telecom to supply 3G handsets and may work with local cell-phone suppliers BenQ Corp. and Compal Electronics Inc. to develop 3G phones. He predicted that his company's service will boost the development of Taiwan's digital content, Internet technology, application service, financial logistics and security transportation industries.

Wang said Asia Pacific has no plan at this time to increase capital. Eastern will provide NT$8 billion (US$228.6 million) to finance Asia Pacific's expansion as soon as its subscriber number reaches 1.5 million.

Asia Pacific has installed over 600 transceiver stations in Taiwan and will add around 400 more stations by the end of this year to provide island-wide coverage. At that time, the company's service will deliver a transmission speed of 153 kilobits per second around the island and a top speed of 2.4 megabits per second in the greater Taipei area.

During the company's promotion period, its subscribers can enjoy a 25% discount on audio service and free access to online content offered by Asia Pacific.