Taipei, Sept. 29, 2008 (CENS)--The six WiMAX service providers in Taiwan are mulling joint procurement of equipment in a bid to minimize costs, and will announce the decision next month.

The six providers—Vastart Cable TV Network Co., Ltd., First International Telecom Corp., Global Mobile Corp., Tatung InforComm, Far EasTon Telecom, VMAX Telecom—recently met to discuss the joint procurement of base-station equipment, with the majority supporting such idea for team procurement enables more advantageous bargaining power and volume discounts.

Vastar’s executives pointed out that a WiMAX base station, priced about NT$2 million (US$62,500 at US$1:NT$32), would sell for half as much under joint procurement. The six service providers plan to buy 15,000 base stations for over NT$30 billion (US$937 million), or for only half as much if bought jointly.

Global Mobile executives stated corporate backing of such proposal as joint procurement would pare costs.

VMAX executives noted that, despite joint procurement being a good idea, service providers have to overcome interoperability problems that may exist with the systems already installed.

First International Telecom executives pointed out, with Motorola base stations already bought, the company has to deal with potential problems with such equipment before taking part in the joint procurement.

Vastar executives said that the joint-procurement can be tried with the equipment planned for a selected city.

(by Ken Liu)