Virus impact over each market - telecom operators, government agencies and regulators' responses - revised forecasts for the next 5 years.
Last updated: 21 Sep 2016 Update History
Report Status: Archived
Report Pages: 61
Analyst: Phil Harpur
This report provides a comprehensive overview of trends and developments in Taiwan’s telecommunications market. The report analyses the Telecoms Infrastructure, mobile, fixed broadband, and Digital Economy sectors. Subjects include:
Researcher:- Phil Harpur
Current publication date:- September 2016 (22nd Edition)
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.
Taiwan’s telecoms industry is served by six mobile operators and four fixed-line operators. However, many telecoms sub-sectors are at or near saturation which limits the scope for growth.
Taiwan boasts one of the world’s most advanced broadband networks and broadcasting infrastructure. To improve its position within the ICT value chain the Taiwanese government and private investors invested significantly in developing standards such as WiMAX. Private investors are attracted to Taiwan due to its regulatory certainty, market maturity, an educated workforce and highly clustered ICT sector that sits at the heart of Taiwan’s economic development.
The number of fixed-line subscribers in Taiwan grew gradually before peaking in 2005. Since then the trend has been one of gradual decline as fixed-lines are substituted with mobile phones. CHT has tried to arrest the decline in fixed-lines by focusing on selling fixed broadband products. Fixed line penetration has decreased gradually from 54.6 in 2011 to 49.7% in 2016.
Taiwan possesses a competitive mobile market comprised of six mobile network operators, of which three dominate the market. High mobile penetration means competition is intense to gain new subscribers hence the market was quick to embrace LTE due to the new subscriber opportunity it presented.
Annual market growth of the mobile subscriber market has been in low single digit figures from 2011 to 2014. Market penetration peaked in 2014 at 129. By 2015 the market saw a slight contraction due to a highly mature and saturated market. Market penetration declined to 128% in 2015 and 127% in 2016 with the market reaching 29.7 million subscribers.
LTE has experienced strong growth since the introduction of services, with LTE subscriber numbers growing at a faster rate than that of 3G. Taiwan’s mobile operators have focused on LTE as a means to increase ARPU to offset the continual year-on-year decline in overall ARPU levels. Mobile users are attracted to LTE due to improved quality of experience provided through faster speeds. Market penetration is expected to grow strongly over the next five years to 2021.
Taiwan has seen very strong growth in its mobile broadband subscribers over the past few years driven by strong growth of 4G services. Penetration has risen form 53% in 2015 to 76% in 2015 and 81% in 2016. Further strong growth is predicted over the next few years to 2019.
Taiwan possesses an advanced fixed broadband market, with services accessible through a variety of technology platforms including DSL, fibre, Hybrid Fibre Coax (HFC), leased lines and wireless. Fibre is the most popular platform and has underpinned Taiwan’s relatively high standing in global broadband rankings.
Chunghwa Telecom is the largest ISP in Taiwan, having successfully leveraging its ownership of the last mile to increase and consolidate its share of the fixed broadband market.
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.
Companies mentioned in this report:
Chunghwa Telecom (CHT); Far EasTone; Taiwan Mobile; Asia Pacific Telecom; Vibo Telecom; Ambit, GigaMedia, Far Eastone, WiMAX Telecom, Tatung Telecom, Global Mobile, Fitel, VMAX Telecom, Vee Telecom. Chunghwa Telecom, kbro, Taiwan Broadband Communications, China Network Systems.
Dollar for dollar, Paul Budde and his team of expert analysts offer the best research regarding telecommunications and telecommunications related issues in the industry. Their products cover the entire globe, are in depth and authoritative. I can recommend them without reservation. It is easy to say because I mean it. Thanks to everyone there for top quality work.
Kristan J. Wheaton, Mercyhurst College Institute of Intelligence Studies
BuddeComm's strategic business reports contain a combination of both primary and secondary research statistics, analyses written by our senior analysts supported by a network of experts, industry contacts and researchers from around the world as well as our own scenario forecasts.
For more details, please see:
A selection of downloadable samples from our Annual Publications catalogue.
Have the latest telecommunications industry news delivered to your inbox by subscribing to Paul's FREE weekly News & Views.