Market Report, "Taiwan - Telecoms, Mobile and Broadband", published

Recently published research from BuddeComm, "Taiwan - Telecoms, Mobile and Broadband", is now available at Fast Market Research

[USPRwire, Sun Feb 28 2016] 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.

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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.

Key Developments:

* 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

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