BMI View : T elecoms markets in Taiwan are among the most mature in the region, with high penetration of mobile, fixed-line and broadband services. Furthermore, there has been a strong migration to higher value services, such as wireless data and fibre - based wireline broadband subscriptions in recent years that has helped to offset declining overall subscription growth rates as the market matures. The trend towards higher - value services is expected to continue with the auction of LTE spectrum in late 2013. Despite these positives it should be noted that operators face a number of challenges including saturation, IP substitution and regulatory measures such as cuts to mobile termination rates and requirements to provide free peering. These factors will squeeze revenues over the medium term, but we hold the view they will not outweigh the positive trends in the market and operators will continue to produce positive financial results.
The latest data from mobile operators and the regulator, the NCC, show total subscriptions reached 28.926mn at the end of September 2013, up by 0.9% y-o-y. This reflects the slowing subscription growth as the mobile penetration rate increases.
Although overall subscription growth has slowed, there has been a transformation of the market in recent years as 3G subscriptions increased rapidly, up 8.3% y-o-y to Q113.
The fixed-line sector falters - the latest data from regulator the NCC indicate that it declined by 1.6% y-o-y to Q113, falling to a total 12.38mn subscriptions.
Key Trends & Developments
In August 2013, regulator National Communications Commission (NCC) cleared all seven applicants for the country's 4G licence auction. The 40-day 4G auction was concluded in September 2013 after six companies paid a combined of TWD118.65bn (US$4bn) for 270MHz of LTE spectrum. Among the winners, incumbent carrier Chunghwa Telecom was the biggest spender, paying nearly TWD39.1bn on spectrum in 900MHz and 1800MHz...
The Taiwan Telecommunications Report features Business Monitor International (BMI)'s independent industry forecasts on the future strength of Taiwan's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.
BMI's Taiwan Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in Taiwan.
- Benchmark BMI's independent telecoms industry forecasts for Taiwan to test other views - a key input for successful budgeting and strategic business planning in the Taiwanese telecoms market.
- Target business opportunities and risks in Taiwan's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Taiwan.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI's key industry forecasts and views, covering the ICT, fixed-line, mobile (including 3G), internet and broadband markets.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.
Business Environment Ratings
BMI's Telecommunications Business Environment Ratings provides a country-comparative Risk-Reward Ratings index aimed at investors (vendors, operators and suppliers) in the regional telecoms market.
The ratings methodology makes sophisticated use of more than 40 industry, economic and demographic data points.
BMI Industry Forecast Scenario
Historic data series and forecasts to end-2018 for all key industry indicators (see list below) supported by explicit assumptions, plus analysis of key downside risks to the main forecast.
- Fixed-Line Telephony - Telephone lines ('000); telephone lines/100 inhabitants.
- Cellular Telephony - Mobile phone subscribers ('000); mobile phone subscribers/100 inhabitants; mobile phone subscribers/100 fixed line subscribers.
- Internet Markets - Internet users ('000); internet users/100 inhabitants; broadband internet subscribers ('000); broadband internet subscribers/100 inhabitants.
Market Data Analysis
Detailed market analysis of the mobile, mobile content, fixed line and internet segments, broken down into:
- Market Data - Analysis of market size, operator shares, dominant trends, competitive landscape and key quarterly data.
- Technology/Service Rollout - Analysis of rollout/adoption of new technology, such as 3G, WiMAX, IPTV, pay-TV, LTE and value-added handset services (gaming, music, video, apps etc.).
- Mobile Content - The latest trends in content and services available and being introduced by mobile operators. Including a timeline of all the latest major mobile content developments.
- Company Database - A comprehensive breakdown of KPIs of the leading mobile operators, including subscriber figures by type (pre-paid and post-paid); 3G subscriber figures; net additions; market share; ARPU; churn rates; minutes of use; voice and non-voice revenue; financial figures (including operating revenues, net profits and EBITDA).
Details of the regulatory bodies and their responsibilities, as well as a special focus on the rules surrounding competition and interconnection. The latest updates in the market's development and regulatory rulings.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses.
The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.