Albany, NY -- (SBWIRE) -- 01/16/2015 -- Taiwan: Higher Mobile Interconnection Charges and Falling Voice Tariffs Will Offset Increasing Data Services Revenue a new Country Intelligence Report by Pyramid Research, offers a precise, incisive profile of Taiwan's mobile and fixed telecommunications and mobile markets based on comprehensive proprietary data and insights from our research in the Taiwan market. Published annually, this presentation-quality, executive-level report provides detailed analysis of the near-term opportunities, competitive dynamics and evolution of demand by service type and technology/platform across the fixed telephony, broadband and mobile sectors, as well as a review of key regulatory trends.

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Key Findings

In 2014, Taiwan's telecommunication market generated service revenue of US$11.7bn or 2.3% of country's GDP. The mobile voice and mobile data segments are the largest contributors to telecom service revenue, accounting for 66.6% of service revenue in 2014. However, despite increasing demand for high-speed data services, service revenue will decline gradually over the forecast period. Pyramid Research projects Taiwan's revenue from telecom services will decline to $10.8bn by 2019. The regulator-mandated voice tariff reduction and mobile interconnection charges continue to be a drag on telecom service revenue.

Pyramid Research projects overall service revenue to decline at a 1.7% CAGR from 2014 to 2019. The fixed/mobile revenue split will be inclined toward mobile services over the forecast period. Increasing competition in the mobile data space will drive operators to offer innovative data packages at competitive prices and to invest in network upgrades to increase their subscriber base.

Taiwan's telecom market has remained stable over the past few years. The top two operators, Chunghwa Telecom and Taiwan Mobile, offering fixed, broadband, pay-TV and mobile services, are expected to account for 61.0% of total service revenue in 2014. Chunghwa Telecom is the market leader in IPTV, fixed and mobile markets while China Network Systems (CNS) leads the cable TV segment. The telecom market is expected to remain highly competitive over the next five years as operators enter into strategic partnership to strengthen their market position.

Adoption of 3G technologies peaked at 97.1% of the mobile subscription base in 2013; this will decline to 17.5% in 2019 due to growing availability of 4G/LTE networks and LTE-enabled smartphones. LTE subscriptions will reach 26.6m by 2019, 81.0% of total mobile subscriptions in Taiwan.

The total number of fixed access lines declined by 0.7% year-over-year to 17.9m in 2014, mainly due to PSTN disconnections. We expect access lines to number 16.7m in 2019. PSTN will account for the largest share (61.2% in 2019). FTTx and cable will be the highest growth technologies, accounting for 23.9% jointly by 2019 as compared with 13.5% in 2014.

Over the forecast period, operators will be concentrating on providing an integrated platform of mobile Internet, broadband and multimedia-on-demand (MOD) services in line with Digital Convergence Policy Initiative from the regulator. Operators are positioning themselves to serve the growing demand for data, by building strategic partnerships with vendors. For instance, Chunghwa Telecom partnered with Coriant to upgrade its 4G/LTE mobile network backhaul, improving broadband capabilities and services for its customers.

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Synopsis

This report provides an executive-level overview of the telecommunications market in Taiwan today, with detailed forecasts of key indicators up to 2019. It delivers deep quantitative and qualitative insight into Taiwan's telecom market, analyzing key trends, evaluating near-term opportunities and assessing risk factors, based on proprietary data from Pyramid Research's databases.

The Country Intelligence Report provides in-depth analysis of the following:

Regional context: telecom market size and trends in Taiwan compared with other countries in the region.
Economic, demographic and political context in Taiwan.
The regulatory environment and trends: a review of the regulatory setting and agenda for the next 18-24 months as well as relevant developments pertaining to spectrum licensing, national broadband plans, number portability and more.
A demand profile: analysis as well as historical figures and forecasts of service revenue from the fixed telephony (including VoIP), broadband, mobile voice and mobile data markets.
Service evolution: a look at changes in the breakdown of overall revenue between the fixed and mobile sectors and between voice, data and video from 2011 to 2019.
The competitive landscape: an examination of key trends in competition and in the performance, revenue market shares and expected moves of service providers over the next 18-24 months.
In-depth sector analysis of fixed telephony, broadband, mobile voice and mobile data services: a quantitative analysis of service adoption trends by network technology and by operator, as well as of average revenue per line/subscription and service revenue through the end of the forecast period.
Main opportunities: this section details the near-term opportunities for operators, vendors and investors in Taiwan's telecommunications markets.

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Reasons To Buy

This Country Intelligence Report offers a thorough, forward-looking analysis of Taiwan's telecommunications markets, service providers and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
Accompanying Pyramid Research's Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in Taiwan's mobile communications, fixed telephony/VoIP and broadband markets, including the evolution of service provider market shares.
With more than 20 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in Taiwan's telecommunications markets.
The broad perspective of the report coupled with comprehensive, actionable detail will help operators, equipment vendors and other telecom industry players succeed in the challenging telecommunications market in Taiwan.

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