4G still to launch but smartphone adoption drives ARPUTaiwan has one of the most advanced telecommunications networks in Asia. Increasing land and labour costs have forced Taiwan to concentrate on technology, and it is now a leading high-tech centre in Asia Pacific. With excellent telecommunications infrastructure in place and the innovative use of breakthrough information technologies, the country continues to be well placed to drive both mobile and data communications services. Annual telecommunications service revenues are around NT$400 billion (US$12.5 billion) and investment in telecoms infrastructure remains substantial.
Taiwan has rapidly become a significant player in broadband Internet access. Towards end 2012, the total broadband penetration had been lifted to over 100% when considering both fixed-line and mobile. The proportion of the population who are Internet users has exceeded 75%. The market has rapidly moved to broadband and FttX connections became the dominant form of access technology in 2012.
Taiwan has a competitive mobile environment and still has high expectations for WiMAX There is significant investment in this area underpinned by the government and companies among which is Intel. Data services continue to grow as a percentage of revenues, as the take-up for 3G increases. 3G subscribers now account for over 75% of the total mobile subscriber base.
However, many telecoms sub-sectors are at or near saturation which constrain the scope for growth. While the market has been liberalised, there is still limited competition in the local access market which is dominated by Chunghwa Telecom. Competition has meant more focus on leading edge, often bundled services to subscribers, who have considerably more choice in operator and service selection.
The 2008 financial crisis and subsequent economic slowdown in 2009 had an impact on many of the operators’ strategies. Faced with diminishing opportunities in the home market, Chunghwa Telecom continues to look for acquisitions overseas, concentrating its efforts in China and emerging markets as part of its mid-term strategy.
Market highlights:
Taiwan’s mobile operators had signed up nearly 22 million 3G subscribers towards end 2012. 3G handset users account for more than 75% of all mobile subscribers;
The three big mobile players made a resurgence into 2012, claiming over 80% of net additions during the year;
Smartphone adoption started to accelerate and drive ARPU
Chunghwa Telecom’s Optical Era Project involves an investment of approximately US$1.8 billion to construct an island-wide fibre-optic network over five years. Towards end 2012 the company provided fibre access to 2.7 million residential and business subscribers.
WiMAX uptake remains slow and the NCC continues to delay awarding two mobile TV licences;Additional investment by the Taiwanese government of NT$130 billion (US$4.3 billion) in smart power grid infrastructure beginning in 2012.Taiwan – Key performance indicators – 2009 - 2012
Sector | 2009 | 2010 | 2011 | 2012 (e) |
Internet subscribers (million) |
Internet | 5.6 | 5.9 | 6.1 | 6.8 |
Mobile internet | 18.2 | 19.5 | 21.0 | 21.8 |
Broadband subscribers (million) |
Total | 5.0 | 5.2 | 5.5 | 5.7 |
FttX | 1.5 | 1.9 | 2.3 | 2.7 |
DSL | 2.5 | 2.4 | 2.1 | 1.9 |
Subscribers to Telecoms Services |
Fixed-line telephone subscribers (million) | 12.8 | 12.7 | 12.7 | 12.4 |
Mobile phone subscribers (million) | 26.9 | 27.8 | 28.9 | 29.5 |
3G market share of mobile base58.6% | 67.3% | 72.3% | 78.3% |
(Source: BuddeComm based on industry data)
For those needing high level objective analysis on Taiwan, this report is essential reading and gives further information on:
Chunghwa Telecom’s ambitious program, which includes increasing the coverage of its fixed-line network exceeding 100Mb/s speeds to 97% of its network by 2016
A warming of relations between China and Taiwan in recent years, raising the prospect of significant investment flows.
Analogue switch off beginning in the remote islands during 2008 and then in the eastern area of Taiwan in 2009, with the completion of analogue switchover in 2013.Chunghwa Telecom planning to upgrade its mobile infrastructure to HSPA+ technology and then start testing an LTE network from 2011 in anticipation of licensing in 2013.
Broadband Industry in Taiwan
1. Key Statistics
2. Country Overview
2.1 Background
2.2 Taiwan’s economy
3. Telecommunications Market
3.1 Overview of Taiwan’s telecom market
3.2 Background of Taiwan’s telecom market
3.3 Telecommunications market sectors
3.3.1 Fixed-line and mobile phone statistics
3.3.2 Telecom revenue by service
3.3.3 Data communications revenue
3.3.4 Fixed, mobile, internet and broadband subscriber comparison
4. Regulatory Environment
4.1 Regulatory authorities
4.2 Legislation and market liberalisation
4.3 The 1996 Telecom Bill
4.4 Ministry of Transport and Communications (MOTC)
4.5 National Communications Commission (NCC)
4.6 Privatisation of Chunghwa Telecom
4.7 Foreign investment
4.8 Licensing
4.9 Foreign equipment restrictions
4.10 Telecoms tariffs
4.11 Amendments to the Radio and Television act
4.11.1 Digital Convergence Policy Initiative
4.11.2 Restructure of telecoms and broadcasting markets
4.11.3 Further policies to promote digital convergence
4.12 National Information and Communication Initiative (NICI)
4.13 International rankings
5. Fixed Network Market
5.1 Market overview
5.2 Fixed network operators’ market share
6. Major Operators
6.1 Chunghwa Telecom Co Ltd (CHT)
6.1.1 CHT – background
6.1.2 CHT – financials
6.1.3 CHT – revenue breakdown
6.1.4 CHT – subscriber base
6.1.5 CHT – investments
6.1.6 CHT – market share by segment
6.1.7 CHT – mobile network - overview
6.1.8 CHT – mobile network – 3G
6.1.9 CHT – broadband – HiNet
6.1.10 CHT – broadband – FttX
6.1.11 CHT – broadband – Movies-on-Demand (MOD)
6.1.12 CHT – 2011 financial performance
6.2 Far EasTern Telecommunications Group
6.2.1 Far EasTone – background
6.2.2 Far EasTone – financials
6.2.3 Far EasTone – subscribers
6.2.4 KG Telecom
6.2.5 New Century InfoComm Tech Co Ltd (Sparq)
6.3 Taiwan Mobile (formerly Taiwan Cellular)
6.3.1 Taiwan Mobile – background
6.3.2 Taiwan Mobile – financials
6.3.3 Taiwan Mobile – subscribers
6.3.4 Taiwan Fixed Network Telecom
6.4 Asia Pacific Broadband Wireless (APBW)
6.5 VIBO Telecom
6.6 Major cable TV players
6.6.1 kbro (previously Eastern Multimedia Group (EMG))
6.6.2 Taiwan Broadband Communications
6.6.3 China Network Systems (previously United Communications Group)
7. Telecommunications Infrastructure
7.1 Submarine cable networks
7.2 Satellite networks
7.3 Smart Grids
8. Internet Market
8.1 Overview of the internet market
8.1.1 ISP market
8.2 Internet statistics
8.2.1 Internet users and subscribers
8.2.2 Internet bandwidth capacity
8.2.3 Internet hosts
9. Broadband Market
9.1 Overview of Taiwan’s broadband market
9.2 Broadband statistics
9.2.1 Fixed-line broadband market development
9.2.2 Fixed-line broadband market by access type
9.2.3 Fixed-line and mobile broadband subscriber statistics
9.3 Government initiatives for broadband and m-Taiwan
9.4 Broadband technologies
9.4.1 Digital Subscriber Line (DSL)
9.4.2 Cable modems
9.4.3 Fibre-to-the-Home (FttH)
9.4.4 Chunghwa telecom broadband statistics
9.4.5 Chunghwa telecom broadband prices
9.4.6 FttX and Taipei City government
9.5 WiFi
9.6 WiMAX
9.6.1 Background
9.6.2 WiMAX in Taiwan – licensing
9.6.3 WiMAX in Taiwan – network rollouts
9.6.4 WiMAX roaming
9.6.5 WiMAX subscribers and revenue
10. Digital Media / Digital Economy
10.1 Overview of broadcasting market
10.1.1 Television
10.1.2 Digital terrestrial services
10.1.3 Cable TV
10.2 E-government
11. Mobile Communications
11.1 Overview of Taiwan’s mobile market
11.2 Mobile statistics
11.2.1 Mobile sector revenues
11.2.2 Mobile subscriber statistics
11.2.3 Mobile ARPU
11.2.4 3G mobile subscriber statistics
11.3 Major mobile operators
11.3.1 Mobile operator comparison
11.3.2 Net additions per mobile operator comparison
11.3.3 ARPU per mobile operator comparison
11.3.4 3G mobile operator comparison
11.4 Mobile services
11.4.1 Prepaid cards
11.4.2 SMS message volume, WAP and GPRS subscribers
11.4.3 Mobile internet
11.4.4 Mobile TV
11.4.5 Mobile value-added services
11.4.6 Mobile banking
11.4.7 NFC payments
11.5 Mobile Number Portability (MNP)
11.6 Personal Handyphone Service (PHS)
11.7 Third Generation (3G) mobile
11.7.1 Background
11.7.2 3G roll out
11.8 4G and LTE
12. Forecasts
12.1 Forecast fixed-line subscribers – 2011; 2017
12.2 Forecast fixed broadband subscribers – 2012; 2017
12.3 Forecasts Mobile
12.3.1 Forecast total mobile subscribers – 2011; 2017
12.3.2 Forecast 3G mobile subscribers – 2011; 2017
13. Glossary of Abbreviations
Table 1 – Country statistics – 2012
Table 2 – Telecom revenue and investment statistics – 2011
Table 3 – Telephone network statistics – September 2012
Table 4 – Internet user statistics – September 2012
Table 5 – Broadband statistics – September 2012
Table 6 – Mobile statistics – September 2012
Table 7 – National telecommunications authorities
Table 8 – Taiwan GDP and GDP per capita – 2000 - 2016
Table 9 – Taiwan telecoms service revenue – 1985; 1990; 1995; 2000; 2005 - 2011
Table 10 – Taiwan – Fixed-line and mobile subscribers and penetration – 1995 - 2013
Table 11 – Taiwan - Call volumes for outgoing mobile and fixed network traffic – 1999 - 2011
Table 12 – Taiwan - Distribution of telecom revenue by services – 2011
Table 13 – Taiwan - Data communication revenue and mobile data service revenue as proportion of total telecom revenue – 2001 - 2011
Table 14 – Number of telecom subscribers per 100 inhabitants – 2001 - 2011
Table 15 – Fixed network operators – market share by revenue – 2011
Table 16 – Chunghwa Telecom fixed subscribers and market share – 2004 - 2012
Table 17 – Taiwan - Chunghwa Telecom revenue, capex, net profit and employees – 2000 - 2011
Table 18 – Taiwan - Chunghwa Telecom revenue breakdown – 2003; 2006 - 2011
Table 19 – Taiwan - Chunghwa Telecom fixed line and mobile subscribers and market share – 2000 - 2011
Table 20 – Chunghwa Telecom’s subscriber base – September 2012
Table 21 – Taiwan - Chunghwa Telecom market share by segment – December 2011
Table 22 – Taiwan - Chunghwa Telecom mobile subscribers and annual change – 1998 - 2012
Table 23 – Taiwan - Chunghwa Telecom’s blended mobile ARPU – 2001 - 2011
Table 24 – Taiwan - Chunghwa Telecom internet HiNet subscribers – 2003 – 2011
Table 25 – Taiwan - Chunghwa Telecom internet ARPU in NT$ – 2001 - 2011
Table 26 – Taiwan - Chunghwa Telecom broadband network development by number of ports and coverage greater than 50Mb/s and 100Mbps – 2007 - 2016
Table 27 – Taiwan - Chunghwa Telecom broadband subscribers by access type – 2003 - 2012
Table 28 – Taiwan - Chunghwa Telecom broadband subscribers by connection speed – 2011 - 2012
Table 29 – Taiwan - Chunghwa Telecom MOD subscribers – 2005 – 2012
Table 30 – Taiwan - Far EasTone revenue, EBITDA, capex, net profit and ARPU – 2003 - 2012
Table 31 – Taiwan - Far EasTone mobile subscribers and annual change – 1998 - 2012
Table 32 – Taiwan - Far EasTone selected operational data – 2006 – 2011
Table 33 – KG Telecom mobile subscribers and annual change – 1998 – 2006
Table 34 – Taiwan – Taiwan Mobile revenue and net profit – 2003 – 2012
Table 35 – Taiwan - Taiwan Mobile revenue breakdown per business segment – 2011
Table 36 – Taiwan - Taiwan Mobile subscribers and annual change – 1998 – 2012
Table 37 – Taiwan - Taiwan Mobile selected operational data – 2006 - 2011
Table 38 – Taiwan - APBW mobile subscribers and annual change – 2003 - 2011
Table 39 – Taiwan - VIBO Telecom mobile subscribers and annual change – 2005 - 2011
Table 40 – Cable subscribers by major operator – 2005 - 2010
Table 41 – Taiwan - Internet users and subscribers – 1995 – 2013
Table 42 – Taiwan - Internet subscribers by access technology – September 2012
Table 43 – Taiwan - International internet bandwidth capacity – 2001 - 2010
Table 44 – Taiwan - Number of internet hosts – 2001 - 2010
Table 45 – Taiwan - Fixed-line broadband subscribers, penetration and proportion of internet subscribers – 2000 - 2013
Table 46 – Taiwan - Broadband subscribers and households – September 2012
Table 47 – Taiwan - Broadband subscribers and annual change by access – September 2012
Table 48 – Taiwan - Fixed-line and wireless broadband subscribers by technology – 2003 – 2012
Table 49 – Taiwan - Fixed-line and wireless broadband subscribers and penetration – 2003 - 2013
Table 50 – Taiwan - DSL subscribers – 2000 - 2013
Table 51 – Taiwan - Cable Modem subscribers – 2000 – 2013
Table 52 – Taiwan - Chunghwa Telecom broadband subscribers and market share – 2001 - 2012
Table 53 – Taiwan - FttX subscribers – 2007 - 2013
Table 54 – Taiwan - Chunghwa Telecom HiNet subscriber and ARPU – 2004 - 2012
Table 55 – Taiwan - Chunghwa Telecom broadband charges for ADSL and FttX – August 2011
Table 56 – Taiwan 2.5GHz spectrum winners – 2007
Table 57 – Taiwan – WiMAX subscribers – 2011 - 2012
Table 58 – Key broadcasting statistics – 2011
Table 59 –Cable TV subscribers – 2002 – 2012
Table 60 – Taiwan - Mobile services revenue – 1992 - 2011
Table 61 – Taiwan - Mobile subscribers and penetration – 1995 - 2013
Table 62 –Taiwan – Mobile subscriber growth by technology (PHS, 2G and 3G) – 2003 – 2012
Table 63 – 2G and 3G mobile services ARPU – 2005 - 2011
Table 64 – Taiwan - 3G mobile subscribers and market share – 2003 - 2013
Table 65 – Taiwan - Mobile operators, subscribers and annual change – December 2011
Table 66 – Taiwan - Mobile subscribers, net additions by operator – 1Q – 3Q 2012
Table 67 – Taiwan - Mobile subscribers, market share and ARPU by operator – September 2012
Table 68 – Taiwan - 3G mobile subscribers and market share – June 2012
Table 69 – Taiwan - Prepaid mobile subscribers – market share – 2001 - 2011
Table 70 – Taiwan - SMS message volume and revenue, WAP and GPRS subscribers – 2001 - 2012
Table 71 – Taiwan - Mobile internet subscribers – 2001 - 2011
Table 72 – Taiwan PHS subscriber growth – 2001 - 2012
Table 73 – Forecast fixed line subscribers and penetration - higher band: 2011 - 2012; 2017
Table 74 – Forecast fixed line subscribers and penetration - lower band: 2011 - 2012; 2017
Table 75 – Taiwan - Forecast fixed broadband subscribers and penetration - lower band: 2011 - 2012; 2017
Table 76 – Taiwan - Forecast fixed broadband subscribers and penetration - higher band: 2011 - 2012; 2017
Table 77 – Taiwan - Forecast mobile subscribers and penetration – lower band: 2011 - 2012; 2017
Table 78 – Taiwan - Forecast mobile subscribers and penetration – higher band: 2011 - 2012; 2017
Table 79 – Taiwan - Forecast 3G mobile subscribers and penetration – lower band: 2011 - 2012; 2017
Table 80 – Taiwan - Forecast 3G mobile subscribers and penetration - higher band: 2011 - 2012; 2017
Chart 1 – Taiwan fixed-line and mobile subscribers – 1995 - 2013
Chart 2 – Taiwan - Chunghwa Telecom fixed-line and mobile subscribers – 2000 - 2011
Chart 3 – Taiwan - Chunghwa Telecom 2G and 3G mobile subscribers – 1998 - 2012
Chart 4 – Taiwan - Internet users and penetration – 1995 - 2013
Chart 5 – Taiwan - Fixed-line broadband subscribers and penetration – 2000 - 2013
Chart 6 – Taiwan - Fixed-line broadband subscribers by technology – 2003 - 2011
Chart 7 – Taiwan - Mobile subscribers and penetration – 1995 - 2013
Chart 8 – Taiwan - Mobile subscribers by technology (PHS, 2G, 3G) – 2003 - 2012
Chart 9 – Taiwan - 3G mobile subscribers and penetration – 2003 - 2013
Chart 10 – Taiwan - Mobile internet subscribers – 2001 - 2011
Exhibit 1 – Map of Taiwan
Exhibit 2 – Major global/regional submarine cables with landing point in Taiwan – 2012
