This report provides a comprehensive overview of the trends and developments in telecommunications and digital media markets in Taiwan. Subjects covered include:
Markets, Industry Overviews and Analysis
Major Telecom Operators (Mobile, Fixed, Broadband)
Infrastructure, including NBN strategy
Mobile Voice and Data Markets
Scenario Forecasts (key market parameters);
Internet, VoIP, IPTV
Broadband (DSL, cable, FttX, wireless)
Researcher:- Paul Kwon Current publication date:- January 2016 (21st Edition)
Taiwan rapidly embraces LTE, raising questions over WiMax
Taiwan has developed a dynamic telecommunications industry defined by excellent telecommunications infrastructure and a very competitive mobile market.
Taiwan’s fixed-line market continues to be dominated by incumbent operator Chunghwa Telecom despite competition and fixed mobile substitution eating into its market share and fixed-line revenue. However the market remains important due to the increasing popularity of fixed broadband which is undergoing a transition from predominantly DSL to fibre access based platforms. Throughout 2016 DSL users will continue migrating to fibre, raising questions about the long term viability of DSL.
Apart from DSL and fibre, fixed broadband is also available via HFC and wireless platforms such as WiMAX. Despite significant WiMAX investments as part of efforts to diversify its ICT industry the platform did not gain widespread acceptance, with the widespread popularity of LTE-based mobile broadband raising questions about the optimal use of the limited radio frequency spectrum that is currently allocated to WiMAX.
Recognising the ability of utilising ICT to improve both social and economic development, Taiwan has taken steps to develop a digital economy, encompassing digital media and e-services and building upon the high availability of fixed and mobile broadband networks. Private sector involvement is particularly strong in digital media, with digital media content widely accessible via HFC and IPTV networks. Telecom operators such as Chunghwa Telecom have also invested heavily in digital media as a means to cross-sell additional products to existing telecom customers.
Taiwan possesses an extremely competitive mobile market as no less than six mobile operators compete in a relatively small island inhabited by less than 24 million people. The mobile market is dominated by three players: Chunghwa Telecom, Taiwan Mobile and Far EastTone Telecommunications. High mobile penetration means competition is intense to acquire subscribers hence the market was quick to embrace LTE which will eventually raise questions about the possibility of improving mobile operator OPEX and network capacity by consolidating from three mobile network platforms (GSM, WCDMA, LTE) to two.
Fibre continues to eat into the market share of DSL
The long term viability of DSL is in doubt given its shrinking user base
WiMAX has largely missed its growth opportunity to LTE and WiFi
Chunghwa Telecom continues to focus on IPTV as a cross-selling opportunity for its sizeable fixed broadband base
Mobile profitability remains challenging due to increased competition
A sixth mobile network operator has entered the market through LTE introduction
LTE take up is occurring at a faster rate than for 3G
LTE provides an opportunity to reverse declining ARPU levels
Companies mentioned in this report:
Chunghwa Telecom, Far EasTone, Taiwan Mobile, Asia Pacific Telecom, Vibo Telecom, Ambit.
Table of Contents
1. Key statistics
2. Telecommunications market
2.1 Historical overview
2.2 Market analysis
2.2.1 Telecom revenue by service
2.2.2 Data communications revenue
3. Regulatory environment
3.1 Historic overview
3.2 Regulatory authority
3.3 Ministry of Transport and Communications (MOTC)
3.4 National Communications Commission (NCC)
3.5 Government policies eg Telecom sector liberalisation
3.5.2 Government initiatives for broadband and m-Taiwan
3.6 Legislation and market liberalisation
3.7 The 1996 Telecom Bill
3.8 Privatisation of Chunghwa Telecom
3.9 Foreign investment
3.10.1 WiMAX in Taiwan – licensing
3.11 Foreign equipment restrictions
3.12 Telecoms tariffs
3.13 Amendments to the Radio and Television act
3.13.1 Digital Convergence Policy Initiative
3.13.2 Restructure of telecoms and broadcasting markets
3.13.3 Further policies to promote digital convergence
3.14 National Information and Communication Initiative (NICI)
I have both worked with Paul and valued his opinion on many occasions. Following, his many comments on the telecommunications industry has been rewarding and insightful. His reports have always been of value and help guide us through the maze of jargon, politics and defined the real road map of this complex industry.
David Hayes, Country Manager - Australia at Bulletin Wireless