2017 Taiwan - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses

Mobile Broadband Continues to Drive Taiwan’s telco sector

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.

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.

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. Changhwa Telecom (CHT) has tried to arrest the decline in fixed-lines by focusing on selling fixed broadband products.

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.

The penetration of Internet users in Taiwan is high compared to other Asian nations and has grown very strongly over the past five years driven by strong growth in mobile broadband. Slow growth is predicted over the next five years due to a relatively mature market.

The Taiwan government announced plans to invest US$1.5 billion over the next eight years to 2025 improve the nation’s digital infrastructure and bridge the rural-urban divide. The plan, is part of the government’s “Forward-looking Infrastructure Construction Project” and aims to improve rural access to broadband Internet, as well as develop a 5G mobile services network by 2020 and an Internet of Things (IoT) network.

Market penetration in the fixed broadband subscriber market has remained flat over the past five years due to a declining number of fixed lines and the growing dominance of mobile broadband.

Taiwan possesses a competitive mobile market comprised of six mobile network operators although the market is dominated by three players. High mobile penetration has resulted in intense competition to gain new subscribers hence the market was quick to embrace LTE.

Taiwan’s mobile market is relatively developed compared to other Asian markets and has experienced negative growth over the last five years due to an increasingly saturated market. Flat to very slow growth is predicted over the next five years to 2022. The market will be constrained from higher growth due to a saturated mobile subscriber market and strong local competition.

Taiwan has seen a rapid increase in mobile broadband penetration over the past five years driven by strong growth of 4G mobile subscribers. Slowing growth is predicted over the next five years to 2022 as the market reaches a heightened state of maturity. 

Key developments:

• There is still limited competition in the local access market which is dominated by Chunghwa Telecom.
• Fixed line penetration is predicted to gradually decline over the next five years to 2022.
• The penetration of Internet users in Taiwan is high compared to other Asian nations and has grown very strongly over the past five years.
• Market penetration in the fixed broadband subscriber market has remained flat over the past five years.
• Slow internet growth is predicted over the next five years due to a relatively mature market.
• Taiwan’s mobile market is relatively developed compared to other Asian markets.
• Taiwan has seen a rapid increase in mobile broadband penetration over the past five years driven by strong growth of 4G mobile subscribers.
• Slowing mobile broadband growth is predicted over the next five years to 2022.

Key companies mentioned in this report:

Chunghwa Telecom, New Century Infocom, Taiwan Fixed Network Telecom, Asia Pacific Broadband Telecommunications, GigaMedia, Far Eastone, WiMAX Telecom, Tatung Telecom, Global Mobile, Taiwan Mobile; Asia Pacific Telecom; Vibo Telecom; Ambit