Taiwan government reportedly exerts pressure on Intel to fulfill WiMAX MOU

Taiwan's Ministry of Economic Affairs (MOEA) reportedly is pressing Intel to fulfill its commitment to make equity investment in Taiwan's WiMAX operators as a means to foster the development of the WiMAX industry in Taiwan, according to sources in Taiwan's MiMAX industry. However, Jong-chin Shen, deputy director general of the Industrial Development Bureau of the MOEA denied such news, stating that the MOEA would not take any retaliative measures against international players.

According to the sources, on October 17, 2005, Ho Mei-yueh, Taiwan's economic minister at the time, and Intel executive vice president Sean Maloney signed a MOU (memorandum of understanding) for cooperation to develop WiMAX technology in Taiwan, with Intel promising to make equity investment in licensed Taiwan-based WiMAX operators.

Taiwan's National Communications Commission (NCC) in July of 2007 awarded six companies with regional WiMAX operating licenses in order to kick off WiMAX services in Taiwan.

However, Intel so far has not yet committed equity investment in any of the six licensed operators and instead, reportedly has set up a joint venture with Japan-based KDDI, with Intel taking up a 17.65% stake in the joint venture, Wireless Broadband Planning KK (WBPK), with a goal of applying for a WiMAX license in Japan, according to wire service reports.

Due to increasing pressure from Taiwan-based WiMAX companies, Intel reportedly has promised to soon commit capital investments in one or two licensed WiMAX operators, according to market sources.