National Communications Commission

W H LiangW H Liang Senior EngineerSenior Engineer

National Communications CommissionNational Communications Commission

Jan. 12, 2007Jan. 12, 2007

The Third Generation Mobile Communications Service

Market in Taiwan

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Outline Background Operators & Systems TrafficTraffic Revenue & SubscribersRevenue & Subscribers Market share Application forecast Conclusion

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Background

The third generation(3G) mobile communications service franchise and licensing process were conducted in two stages, i.e. beauty contest & auction. The applicant who passed the reviewing of stage one would be a qualified bidder. Then after auction, the winning bidder would be granted the establishment

approval after it paid the award price. If t If the winning bidder could complete relevant infrastructure deployment within the valid date of approval, the regulator would issue a concession license to the

winning bidder accordingly.

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Background

There are a total of 5 licensees in Taiwan. The

frequency band had been assigned as follows: license A： 2 x 15MHz(1920~1935MHz;2110~2125MHz)

+ 5MHz(1915~1920MHz) license B： 2 x 10MHz(1935~1945MHz;2125~2135MHz) + 5MHz(2010~2015MHz) license C： 2 x 15MHz(1945~1960MHz;2135~2150MHz) + 5MHz(2015~2020MHz) license D： 2 x 15MHz(1960~1975MHz;2150~2165MHz) + 5MHz(2020~2025MHz) license E： 2 x 20MHz(825~845MHz;870~890MHz)

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Background

The applicant of the 3G service had to submit business plan at stage one.

The 3G system technologies selected by operators should follow the IMT-2000 technical standard announced by the ITU.

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Operators & Systems

Operators The 3G services operators in Taiwan include Chunghua Telecom, Taiw

an Mobile, Far EasTone , VIBO and Asia Pacific Broadband Wireless Communications Inc(APBW).

Systems: Only APBW follows CDMA-2000 standard while other operators adopt

WCDMA standard.

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Traffic

In Oct. 2006In Oct. 2006 Voice service : 509 million minutes Data service: 51.4 billion KBytes.

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Subscribers & Revenue

3G Subscribers: 2.88 millions. Total revenue in Oct. 2006: NT$2.82 billions.

2G Subscribers: 18.81 millions Total revenue in Oct. 2006: NT$14.84 billions

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Market share

By subscriber (Total: 23,012,000)By subscriber (Total: 23,012,000) 2G: 81.75% 3G : 12.53% PHS: 5.72%

By revenue (Total: NT$18.137 millions)By revenue (Total: NT$18.137 millions) 2G: 81.81% 3G: 15.56% PHS: 2.63%

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Application Forecast

At present, the 3G services still focus on voice and short messages. The 3G operators have continually produced mobile multimedia services, such as video phone, mobile TV, real time news, real traffic reports, video mail, on-line game, and security guard service in Taiwan. In the future, we expect operators to introduce multimedia services such as video, entertainment, location based service, ... etc.

The 3G operators have started to evaluate, research, develop and design the wireless technologies of broadband CDMA. Let 3G technologies root and grow in Taiwan.

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Conclusion

At present, the 3G subscribers account for 12.62% of population in Taiwan. As estimated, the figure will grow 150 thousands per month and the penetration rate should achieve 50% in five years.

Broadband demand for mobile data communication is a common trend in information society. The content and application development will promote the growth of 3G subscribers.

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THANK YOU!!