Taipei, May 16, 2008 (CENSS)--A wave of A&M (acquisition and merger) is likely to take place among local mobile-phone operators, as the National Communications Commission (NCC) resolved yesterday (May 15) to remove the 10% ceiling for them to invest in each other.

One major beneficiary of the decision is Taiwan Mobile Co., Ltd., which is likely to accelerate its pace of merging with TransAsia Telecommunications. Far Eastone Telecommunications is also expected to merge with KGT Telecommunications, in which it has already possessed a controlling stake. Such mergers can lead to the integration of organization, transmission bases, equipment, networks, and customer services, thereby achieving considerate cost savings.

Howard S.H. Shyr, NCC vice chairman and spokesman, remarked that the original restriction was put in place in order to prevent the dominance of the market by a few major players and was a corresponding measure to the original policy of issuing national and regional operating licenses. Such restriction has proved to be inadequate, since it prevents operators from achieving economy of scale, according to Shyr.

In the future, mergers among mobile-phone operators will be subject only to the regulations of the Telecommunications Law, similar to other telecom service providers.
(by Philip Liu)