Last updated: 8 Apr 2009 Update History
Report Status: Archived
Report Pages: 85
Analyst: Stephen McNamara
Publication Overview
· Market and industry analyses, trends and developments;
· Facts, figures and statistics;
· Industry and regulatory issues;
· Infrastructure;
· Major players, revenues, subscribers, ARPU;
· Internet, VoIP, IPTV;
· Mobile voice and data markets;
· Broadband (FttH, DSL, cable TV, wireless);
· Convergence and digital media.
Researcher:- Lisa Hulme-Jones
Current publication date:- April 2009 (15th Edition)
Next publication date:- April 2010
Executive Summary
Taiwan has developed one of the most advanced telecommunications networks in Asia. With excellent telecommunications infrastructure in place and the innovative use of breakthrough information technologies, the country continues to be well placed to drive both mobile and data communications services. Annual telecommunications service revenues are around NT$400 billion (US$12 billion) and investment in telecoms infrastructure remains substantial. This translates to an increase of 100% over the 10-year period from 1998 when revenue was near NT$200 billion (US$6 billion).
Headed by what had been a runaway mobile sector which passed 100% penetration in early 2002 (it has since been hovering at around 110%) and a very strong fixed-line telephone sector with a penetration of over 55%, the market continues to find new ways to grow.
The proportion of the population who are Internet users has exceeded 65%. Some 80% of all homes in
However, many telecoms sub-sectors are at or near saturation which constrain the scope for growth. While the market has been liberalised, there is still limited competition in the local access market which is dominated by Chunghwa Telecom. Overall, there are still low levels of foreign direct investment.
Key highlights:
· Total mobile sector revenues reached US$7.2 billion in 2008 as the highly penetrated market saw operators introducing value-added, higher-margin products. The ARPU for 3G services, while dropping, was still 35% higher than for 2G. Mobile data services increased to over 20%, up from only 2% in 2000.
·
· Chunghwa Telecom’s Optical Era Project involves an investment of approximately US$1.8 billion to construct an island-wide fibre optic network over five years. By 2010 it aims to provide fibre access to 2.4 million residential and business subscribers from 700,000 going into 2009. The company expects FTTx to overtake its ADSL platform in terms of service capacity and number of subscribers in 2011.
· The government allocated NT$9.6 billion (US$300 million) for WiMAX-related investment under the M-Taiwan project, which ran though 2008.
· Over the five years to 2011, the government is expected to appropriate NT$55.6 billion in funds, with NT$11.3 billion for the promotion of new applications that will play a role in the everyday lives of people, such as food, residence, travelling, education and entertainment. Another NT$26.5 billion will be used to promote new e-government related services. The remaining funds will be used to create equal digital opportunities and technology service industries. The key objectives are included in the report.
· Chunghwa Telecom set up a US$30 million ‘Internet data joint venture’ with
Internet, broadband and telecoms statistics for
Sector |
2004 |
2008 |
Internet (million) |
||
Internet users |
12.2 |
15.8 |
Internet subscribers |
8.0 |
6.0 |
Mobile Internet subscribers |
5.3 |
13.0 |
as % of all mobile subscribers |
23.5% |
51.4% |
Broadband (million) |
||
Total subscribers |
3.7 |
4.7 |
Penetration rate |
16.3% |
20.3% |
Proportion of Internet subscribers |
46.0% |
68.0% |
DSL subscribers |
3.1 |
3.3 |
Subscribers to telecoms services (million) |
||
Fixed-line telephone subscribers |
13.5 |
13.1 |
Mobile phone subscribers |
22.7 |
25.3 |
3G subscribers |
0.5 |
5.0 |
3G market share of mobile base |
2.1% |
19.8% |
(Source: BuddeComm based on industry data)
Data in this report is the latest available at the time of preparation and may not be for the current year.
For those needing high level objective analysis on
· Chunghwa Telecom’s ambitious CAPEX program, which includes increasing the penetration rate of its fibre optic network to at least 25% of
· The government amendments to Regulations on Telecommunications Universal Service in February 2008, and appointment of Chunghwa, Taiwan Fixed Network and Chungtou Cable Television Co to complete the construction of broadband networks in 50 remote tribal areas and regions in order to reduce the gap for availability of broadband data access services between urban and rural areas.
·
· Chunghwa Telecom and SingTel’s joint venture to build a satellite scheduled to be launched in the fourth quarter of 2010. The venture will build the ST-2 satellite to replace the ST-1 satellite. ST-2 has a planned life cycle of 15 years, longer than ST-1’s 12 years and has a higher transmitting power that allows both companies to expand service coverage in
· Far Eastern Group uniting its three local telecoms businesses – mobile operator Far EasTone, wireline operator New Century InfoComm (Sparq) and ISP SeedNet – into a new holding company, Far Eastern Telecoms Group (FETG).
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