Vee Telecom to acquire Vmax Telecom

Vee Telecom recently announced it will take over Vmax Telecom from
Intel, Tecom and Vibo Telecom by acquiring their ownership in the WiMAX-based
service provider for NT$ 1.45 billion (US$48 million).

Vibo holds a 33 percent stake in Vmax, Intel 19 percent through Intel Capital,
and Tecom 48 percent.

Vee Telecom chairman F.Y. Lai pointed out that the two companies will still
operate independently in the initial stage after the acquisition. Nevertheless,
the acquisition will make Vee Telecom Taiwan’s first WiMAX service provider to
offer island-wide service.

Though the island’s industry executives including Wang himself think that the
ideal number of the island’s WiMAX service providers should be two to three
instead of the licensed six, the consolidations are allowed only when the
providers meet the Cabinet-level National Communications Commission’s (NCC’s)
regulations that their cell towers must cover 70 percent of the island’s

By Team

[email protected]