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Taiwan Telecoms Report - 2020-2025

  • ID: 5014118
  • Report
  • April 2020
  • Region: Taiwan
  • 66 Pages
  • Idem Est Research
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FEATURED COMPANIES

  • Chunghwa Telecom
  • Far EasTone
  • Kbro
  • Taiwan Mobile
  • Taiwan Star (T Star)
  • MORE

This report provides analyses of revenue and market forecasts as well as statistics of the Taiwan telecoms industry including market sizing, 5-year forecasts, market insights, key telecom trends, 5G and also features the following:

  • Overall Telecommunications Market by Major Operators
  • Telco Operators Profile, Revenue and EBITDA Mix
  • Mobile Subscribers & Revenue Market Overview and Forecasts
  • Spectrum Holdings
  • IoT Market Overview
  • Broadband Subscribers & Revenue Market Overview and Forecasts
  • National Broadband Network Detailed Market Overview and Forecasts
  • Thematics / Opportunities relating to 5G, M&A and e-Commerce
  • Telecoms Infrastructure Review
  • Telco M&A Transaction Database

WHY YOU SHOULD BUY THE TAIWAN TELECOMS REPORT:

  • Benefit from the latest market opportunities
  • Understand the threats to your operations and investments and protect your company against future risks
  • Gain insights on emerging trends supporting, enhancing or disrupting your activities in the market
  • Get a full view of the competitive landscape to assess your market position.
  • Forecasts as a key input for successful budgeting and strategic business planning in the telecoms market
  • Target business opportunities and risks in the telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Operators Profiles
Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Chunghwa Telecom
  • Far EasTone
  • Kbro
  • Taiwan Mobile
  • Taiwan Star (T Star)
  • MORE

1 Key Statistics
1.1 Taiwan Population
1.2 Taiwan Households
1.3 Taiwan’s GDP

2 Overall Telecommunications Market, 2014–2025
2.1 Market Overview
2.2 Historical Telecommunications Market Revenue, 2014-2019
2.3 Overall Telecommunications Market Forecast, 2018-2025
2.4 Telecommunications Market Capital Expenditure, 2014-2025
2.4.1 Historical Telecommunications Capex Spend, 2014-2019
2.4.2 Capex to Revenue Country Benchmark
2.4.3 Capex to GDP Benchmark
2.4.4 Telecommunications Capex Spend Forecast, 2018-2025

3 Telecommunications Operators Profile
3.1 Chunghwa Telecom Profile
3.1.1 Chunghwa Telecom Revenue and EBITDA Mix
3.2 Far EasTone Profile
3.2.1 Far EasTone Revenue and EBITDA Mix
3.1 Taiwan Mobile Profile
3.1.1 Taiwan Mobile Revenue and EBITDA Mix
3.2 Asia Pacific Telecom Profile
3.2.1 Asia Pacific Telecom Revenue and EBITDA Mix
3.3 OTher Operators Profile
3.3.1 Taiwan Star
3.3.2 KBro
3.3.3 China Network Systems (CNS)
3.3.4 Taiwan Broadband Communications (TBC)

4 Mobile Market
4.1 Mobile Subscribers Historical and Forecast, 2014-2025
4.1.1 Mobile Subscribers Historical, 2014-2019
4.1.2 Mobile Subscribers Market Share, 2014-2019
4.1.3 Taiwan Smartphone Share, 2019
4.1.4 Taiwan Mobile Subscribers Forecast, 2019-2025
4.2 Mobile Revenue Historical and Forecast, 2014-2025
4.2.1 Historical Taiwan Mobile Service Revenue, 2014-2019
4.2.2 Mobile Service Revenue Forecast, 2018–2025
4.2.3 Mobile Subscribers ARPU, 2014-2019
4.3 Spectrum Holdings
4.3.1 Existing Spectrum Holdings
4.3.2 5G Trials and 5G Auctions Results
4.3.3 Mobile Frequencies Portfolios Analysis
4.3.1 Spectrum Depth Benchmark by Country
4.4 Mobile Download Data and Pricing Trends
4.5 Mobile Speed Tests
4.5.1 Ookla Mobile Speed Tests
4.6 Internet of Things (IoT)

5 Broadband Market
5.1 Fixed Broadband Subscribers Historical, 2014-2019
5.2 Fixed Broadband Subscribers Forecast, 2018-2025

6 Telecommunications Infrastructure Investments
6.1 Fixed Infrastructure
6.1.1 Government Plans and Policies
6.1.2 Submarine Cables
6.2 Mobile Tower Infrastructure Landscape
6.2.1 Getting Ready for 5G
6.3 Telco Infrastructure Comparative

7 Thematics / Opportunities
7.1 Going for Scale
7.2 Going for Scope
7.2.1 e-Commerce
7.2.2 Digital Payments
7.3 New Telecoms Operating Model
7.3.1 The Attraction of Infrastructure Multiples
7.4 5G versus Fixed
7.4.1 5G Overview
7.4.2 5G: Relative Capex Investments and Frequency Range
7.4.3 Fixed Broadband Networks Doing the Heavy Lifting Long Term

8 Telco M&A Transaction Database

9 Methodology

10 Copyright Notice

List of Figures
Figure 1: Telco sector revenue as % of GDP in Taiwan
Figure 2: Telecommunications Market Revenue, 2019
Figure 3: Telecommunications Market EBITDA, 2019
Figure 4: Telecommunications Revenue & EBITDA pool Share Estimates, 2019
Figure 5: Capex to Revenue Benchmark, 2014-2019
Figure 6: Capex to GDP Ratio Benchmark, 2014-2019
Figure 7: Telecommunications Capital Expenditure Spend, 2000-2025
Figure 8: Chunghwa Telecom Service Revenue Mix, 2014-2019
Figure 9: Chunghwa Telecom Historical Revenue Mix, 2014: 2019 (TWD bn)
Figure 10: Far EasTone Service Revenue Mix, 2014-2019
Figure 11: Far EasTone Historical Revenue Mix, 2014: 2019 (TWD bn)
Figure 12: Taiwan Mobile Revenue Mix, 2014-2019
Figure 13: Taiwan Mobile Historical Revenue Mix, 2014: 2019 (TWD bn)
Figure 14: Mobile Subscribers by Technology (000’s), 2014-2019
Figure 15: Mobile Subscribers Share Comparison, 2014-2019
Figure 16: Mobile Subscriber Share Comparison, 2014-2019
Figure 17: Mobile Number Porting Total (m), 2013-2019
Figure 18: Mobile Net Adds/Loss (000’s) Comparison, 2015-2019
Figure 19: Mobile Subscribers Forecast, 2014-2025
Figure 20: Mobile Service Revenue Forecast, 2018-2025
Figure 21: Mobile Subscribers ARPU (TWD), 2018-2025
Figure 22: Subscriptions per MHz of Spectrum, Asia-Pacific Countries, 2019
Figure 23 –Mobile Handsets Monthly Download Data (GB), 2017-2019
Figure 24: Data Pricing Trends in Asia-Pacific (US$ per GB per month), 2017-2019
Figure 25: Ookla Mobile Speedtest Speed and Ranking Comparison
Figure 26: Spectrum available for IoT in Taiwan
Figure 27: Broadband Subscribers Share Comparison, 2014-2019
Figure 28: Taiwan Broadband Net-Adds (000’s) by Operators, 2015-2019
Figure 29: Broadband Subscribers Forecast, 2018-2025
Figure 30: Taiwan Base Stations Market Share, 2019
Figure 31: Telecoms Providers EV/EBITDA Ranges
Figure 32: 5G Network Slices Structure
Figure 33: Effect of Frequency on Range
Figure 34: 5G Capacity and Coverage Layers
Figure 35: Relative Capex Required for 5G Network Infrastructure Investment
Figure 36: Australia: Volume of Data Downloaded (Terabytes/month), 2010-2019

List of Tables
Table 1: Taiwan: Key Statistics
Table 2: Telecommunications Market Revenue by Operators, 2014-2019
Table 3: Total Telecommunications Market Revenue, 2018-2025
Table 4: Historical Telecommunications Capex Spend, 2014-2019
Table 5: Total Telecommunications Capex Investments Forecast, 2018-2025
Table 6: Historical Chunghwa Telecom Revenue, EBITDA and Capex, FY14-FY19
Table 7: Historical Far EasTone Revenue, EBITDA and Capex Mix, 2014-2019
Table 8: Historical Taiwan Mobile Corporation Revenue and EBITDA Mix, 2014-2019
Table 9: Historical APT Revenue, EBITDA & Capex, 2014-2019
Table 10: Historical Mobile Subscribers, 2014-2019
Table 11: Taiwan Mobile Subscribers Forecast, 2018-2025
Table 12: Historical Mobile Service Revenue, 2014-2019
Table 13: Historical Monthly Mobile ARPU, 2014-2019
Table 14: 5G Auction Results, 2020
Table 15: Mobile Frequencies by Operators and by Band (MHz)
Table 16: Historical Broadband Subscribers, 2014-2019
Table 17: Historical Broadband Monthly ARPU, 2014-2019
Table 18: Taiwan Broadband Subscribers Forecast, 2018-2025
Table 19: International Submarine Cable Systems with Landing Stations in Taiwan
Table 20: Chunghwa Telecom, Far EasTone, Taiwan Mobile, T Star, Asia Pacific Telecom, Telco Infrastructure Landscape
Table 21: Technology Specifications (ADSL, FTTN, Fibre, 4G/LTE, 4G/LTE-A and 5G)
Table 22: Australia: Volume of Data Downloaded Mix (Terabytes/month), 2010-2019
Table 23: Telco Transaction Database, 2001-2019

Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Chunghwa Telecom
  • Far EasTone
  • Kbro
  • Taiwan Mobile
  • Taiwan Star (T Star)
  • MORE

Globally, the telecommunications sector is proving to be a core and essential infrastructure service to national economies, with data infrastructure becoming critical in a connected world and will likely increasingly attract a new class of investors such as large infrastructure funds. The publisher expects the Taiwanese telecommunications industry to remain steady thanks to the defensiveness nature of the industry, amid the political uncertainties and an uncertain economic outlook due to the COVID-19 pandemic.

With already a saturated mobile phone penetration and fixed broadband take-up among households, future growth is likely to remain subdued with a declining working population and an aging population over the long term.

The publisher forecasts that mobile subscriptions will continue to grow in the 2019-25 period and fixed broadband subscribers will also continue to grow but lower its household penetration over the same period due to fixed-wireless substitution. The ratio of the telecommunications sector revenue to GDP is declining from a peak in 2015, sliding down every year since then.

Following the market contraction over the last 5 years, Ithe publisher forecasts flat revenue growth to 2025, as long as data pricing stays rational amid the diminishing impact of declining legacy voice and SMS revenue.

Mobile subscriptions ares growing faster than mobile service revenue leading to ARPU decline after 3 years of intense competition with the market transitioned completely transitioned to 4G after shutting down 2G and 3G networks in 2017 and 2019 respectively.

The publisher expects the overall telecoms market to remain flat through to 2025 after a marked decline from 2016 due to mobile service revenue pressure partially offset by fixed broadband and enterprise data growth.

Capex Investments

The Capex to GDP ratio peaked in 2014 and has been sliding since, to its lowest in 2019. Capex investments will increase again  from 2020 through to 2025, as mobile operators invest in 5G, bolster their 4G coverage and increase capacity to fulfil strong data demand, increasing again Capex to Sales Ratio.

Operator Profiles

Most operators maintained EBITDA margins at the expense of revenue growth with Chunghwa losing the most share while Far EasTone and Taiwan Mobile also losing mobile service revenue share in the 2014-2019 period at the expense of Asia Pacific Telecom and Taiwan Star.

Mobile Subscribers and Revenue

As the rate of growth of net additions in mobile subscriptions slows, telecommunications providers are channelling their efforts into reducing their cost base and stabilising ARPU through new value-added services using mobile data and bundling fixed and mobile services. The proportion of postpaid subscriptions remained stable at about 80% between 2014 and 2019 while the postpaid segment is growing in popularity with SIM-only offerings and reducing the number of people holding multiples SIMs.

According to our benchmark study of mobile data pricing, India has the lowest rate per GB at just a few cents per GB, while Australia and China had the biggest cost reduction per GB mostly due to increased data allowance in plans while Singapore remains expensive. Taiwan mobile users pay for competitively priced data as mobile users recorded the largest monthly download in the Asia Pacific region.

Broadband Subscribers – FTTH Push and Fixed Wireless

The fixed broadband market is experiencing a subdued growth with Chunghwa Telecom losing share to HFC cable operators such as KBro, Taiwan Mobile, TBC and CNS. Chunghwa Telecom invested early in the 2010s in FTTx technologies while migrating its DSL subscribers to its HiNet network. Competing cable operators also invested in upgrading their cable networks bundling mobile, IPTV and e-Commerce services but falling short of upgrading to full-fibre networks limiting opportunities for gigabit speeds.

Fixed broadband penetration is forecasted to decline as fixed-wireless substitution is increasing supporting a rising number of lone-occupancy households.

Thematics – Telecoms Infrastructure / 5G / M&A / Infrastructure

Infrastructure funds, pension funds and government funds are assigning high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centres, submarine cable and fibre infrastructure.

Investment funds are assigning high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centres, submarine cable and fibre infrastructure. This report outlines some real market examples of how investors view and value these investments with real industry examples and EV/EBITDA comparatives and benchmarks.

However, in the medium term, the telco sector is likely to experience some corporate activity. Subdued growth due to ARPU pressure compounded by low population growth is pushing telcos to look for outside opportunities to increase scale. The publisher expects a wave of consolidation in Taiwan in both the mobile and fixed broadband market, after some failed merger of cable operators.

The arrival of 4G moved the Internet off our desktops into our palms and pockets, 5G could transform the network from something we carry around to something taking us around either virtually (augmented reality or virtual reality) or in reality (autonomous vehicles), the 5G outcome and benefits beyond fast connectivity remain largely unknown in terms of business models, investments required and timeline.

Note: Product cover images may vary from those shown
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  • Asia Pacific Telecom (APT)
  • China Network Systems (CNS)
  • Chunghwa Telecom
  • Far EasTone
  • Kbro
  • National Communications Commission (NCC)
  • Taiwan Mobile
  • Taiwan Broadband Communications (TBC)
  • Taiwan Star (T Star)
Note: Product cover images may vary from those shown
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The publisher uses primary and secondary research as well as proprietary information sources to generate market analysis and forecasts for fixed and mobile services in terms of both subscribers and revenue. Interviews are conducted with key service providers in the region to determine current and potential market sizing as well as future service offerings. Information gathered through interviews is further cross-checked to validate the total market size.

The primary research is supplemented with a range of secondary source material, including related research, press releases, securities filings, media, Web-based materials, and trade publications.

Industry and population statistics are also leveraged for reference and to ensure consistency in the data collection. Extensive service provider primary and secondary research, together with the publisher's end-user research database, provides a strong basis for sizing and forecasting the market. The multiple reference points allow for validation of information provided by the service providers compared with that gathered from alternative sources.

Note: Forecasts are made in local currency, and no allowance is made for inflation. All numbers in this document may not be exact due to rounding.

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