WiMAX Telecom and Vastar Cable TV System, two out of the six WiMAX licensees awarded by Taiwan's National Communications Commission (NCC) last month, on August 15 signed a strategic alliance agreement which calls to provide island-wide WiMAX services starting the first half of 2008, the companies announced after signing the agreement.

WiMAX Telecom, a joint venture (JV) between 3G services provider Vibo Telecom and telecom equipment maker Tecom, was awarded a license to offer WiMAX services in the northern part of Taiwan, while Vaster won a license to provide similar services in the southern Taiwan region.

The strategic alliance will allow both WiMAX Telecom and Vaster to provide nationwide services to their respective subscribers, according to WiMAX Telecom president Teddy Huang.

WiMAX Telecom plans to launch its WiMAX services next June, whereas Vaster, a fix-line and cable TV operator, plans to start implementing WiMAX services in Taichung, central Taiwan, in the first half of 2008.

In related news, WiMAX Telecom said that it will be able to boost its paid-in capital to NT$1 billion (US$30.3 million) by the end of this year, with Vibo, Tecom as well as subsidiaries of the two companies contributing the needed capital, said Huang, who also noted that WiMAX Telecom would also consider taking equity investments from other companies. On the other hand, Vaster plans to increase its capital to NT$1.82 billion in 2007, according to company sources.

Vaster also plans to start purchasing IP set-top boxes (STBs) supporting HDTV in September, with the quantity likely to reach 200,000 units initially and increase up to 500,000 units later on, indicated the sources.

Among Taiwan-based STB makers, Zyxel Communications and Gemtek Technology are indicated as having the highest potential to win the orders from Vaster, according to market sources.