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Taiwan Broadband Overview

Broadband development in Taiwan started in March 2000, when the government issued three fixed network licences. Taiwan boasts one of the world’s most advanced broadband networks and broadcasting infrastructure. To keep it that way, the Taiwanese government and private investors are continuously push the limits of technology and converging services. Recent years have shown Taiwan to be an attractive market for foreign investments. This is because it has a mature and highly clustered telecommunications sector that sits at the heart of Taiwan’s economic development. Taiwan is also home to fast-growing digital content, media and cultural creative industries which drive demand for ubiquitous networking and wireless access services, much more so than in other developed nations. In addition, the regulatory environment is supportive of new private investment and services, with matched interest and funding from the Taiwanese government.

By the end of 2006, Taiwan’s telecommunications sector generated revenue in excess of TWD 371.6 billion of which 12.7 per cent came from Internet and value-added services. Mobile phone services accounted for the largest single share at 59 per cent of the total telecoms revenue in 2006, and in 2007, the revenues remained nearly constant. In 2000, three new companies acquired fixed-line service licenses. These were Taiwan Fixed Network, New Century Infocomm Tech and Asia Pacific Broadband Telecommunications. Unfortunately, they did not succeed in breaking the Taiwanese incumbent Chunghwa Telecom’s monopoly, which still holds significant market shares in all three fixed telephony segments.

Key players in the mobile market are Chunghwa Telecom, Taiwan Cellular Corp., Far EastTone Telecommunications Co. Ltd., Asia Pacific Broadband Wireless Communications (APBW) and VIBO. There is also Aurora Telecom Corp - Taiwan’s first mobile carrier operating on a rented network. Initially a joint venture between pure 3G mobile operator VIBO Telecom Inc and Aurora Corp, an office appliance supplier, the new carrier launched 3G services on 6 December 2005 and built up a new network which has become the largest on the island.

Taiwan’s mobile subscriber base is expected to reach 24.6 million by end-2008, up from 23.2 in December 2006. About half of all mobile subscribers use their phone for accessing data communications services, including the Internet or streaming TV. Subscriber market shares of the major operators have remained stable for the last couple of quarters, with Chunghwa Telecom at 37 per cent, Taiwan Cellular Corp 27 per cent, Far Eastone 27 per cent, ARBW 6 per cent and VIBO 3 per cent.

The mobile industry in Taiwan has rapidly evolved from an analogue AMPS (Advanced Mobile Phone Service) system to the deployment of 3G networks. The first 3G service was launched in July 2003, with four other operators following between July and December 2005. The next step in the evolution of mobile operators will be the launch of WiMAX and converging services. Telecom and mobile phone service providers are consolidating; blurring the distinction between what is a fixed, wireless or content provider. Making a purchase through subsidiary Taihsing International Telecommunications, Taiwan Mobile has increased its shareholding in Taiwan Fixed Network to 74.9 per cent in order to realize its triple-play strategy. Far EasTone purchased a 51 per cent share in Q-ware Systems and Services Corporation, which operates Taipei’s WiFi networks. In August 2007, Far EasTone took a 24.51 per cent share in fixed-line operator New Century Infocomm, after a share swap with SingTel for a 3.98 per cent stake in Far EasTone.