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Taiwan Telecommunications Report Q1 2014

Taiwan telecms market reported to be the most mature in Asia

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2014-01-09 08:45:02 - Taiwan Telecommunications Report Q1 2014 - a new market research report on

Telecoms 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.

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