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Taiwan: Mandatory Price Cuts Push Operators to Develop More Value-Added Services
Pyramid Research, Inc., July 2010, Pages: 26
One of the areas of greatest activity in Taiwan's communications market during the next five years will be the broadband market as migration to higher-speed, fiber-optic connections and promotion of value-added services fuel its growth, according to a new report from Pyramid Research (www.pyr.com).
Taiwan: Mandatory Price Cuts Push Operators to Develop More Value-Added Services offers a precise profile of the country's telecommunications, media, and technology sectors based on proprietary data collected and analyzed by Pyramid. This 26-page report provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies.
Another tough year for operators in Taiwan. 'In January 2010, regulator NCC mandated that Taiwan's operators must cut their fixed monthly rents by 5.686 percent and their mobile 2G and 3G services by 5.87 percent, all in an effort to provide some reprieve to consumers badly hit by the economic crisis of 2009,' notes Daniel Yu, analyst at Pyramid Research and author of the report. 'Regulators expect consumers to recognize savings of more than $100 million per year as a result of these rate cuts, a significant hit to Taiwan’s service providers,' he explains.
The rate cut, combined with significant competition among a large number of players, means that operators are increasing their focus on value-added services including mobile data, mobile content, broadband access, and applications, among others. 'We expect mobile broadband to grow at a CAGR of 15 percent between 2010 and 2015, reaching $352 million in revenue at the end of the forecast period,' says Yu. 'Migration to fiber, high-speed 20-Mbit/s+ connections, IPTV, and HD will fuel fixed broadband growth over the next five years, enabling the market to generate $1.8 billion by 2015.'
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