Last updated: 3 Dec 2020 Update History
Report Pages: 157
Analyst: Sebastien De Rosbo
Taiwan has developed a dynamic telecommunications industry defined by excellent infrastructure and a very competitive mobile market. Private investors are attracted to the territory due to its regulatory certainty, market maturity, an educated workforce, and highly clustered ICT sector that sits at the heart of economic development.
Overall fixed line penetration has been in decline since 2012, and this trend is expected to continue in coming years as customers adopt mobile and mobile broadband solutions for voice and data services. The mobile market is dominated by three operators, and high penetration has resulted in intense competition to gain new subscribers. In recent years this was evidenced in the drive to develop LTE G services, which were quickly embraced by consumers. The same drive is being repeated with 5G, with operators having launched services in mid-2020 using a range of bands.
Taiwan’s advanced fixed broadband market is served by a variety of technology platforms including DSL, fibre, HFC, leased lines and wireless. Fibre is the most popular platform, largely due to the migration of DSL subscribers. This has underpinned Taiwan’s relatively high standing in global broadband rankings. Growth in the fibre sector is likely to continue to be strong in coming years though more subdued than formally, given that most DSL subscribers have migrated to fibre infrastructure.
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. Over the next five years relatively slow growth is predicted. One break on fixed broadband growth will come from 5G since the launch of services is expected to encourage some consumers to close their fixed broadband connections.
BuddeComm notes that the outbreak of the Coronavirus is having a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure. Overall progress towards 5G may be postponed or slowed down in some countries.
On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.
Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.
The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.
Chunghwa Telecom, New Century Infocom, Taiwan Fixed Network Telecom, Far EasTone, Taiwan Mobile, Asia Pacific Telecom, VIBO Telecom, Ambit, GigaMedia, WiMAX Telecom, Tatung Telecom, Global Mobile
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