3G Not So Clever in Taiwan
December 19, 2005 - source: BWCS
Despite recent glowing reports from Taiwan's three licensed next generation mobile phone operators, the trio has admitted that they are having trouble growing their 3G subscriber numbers. Chunghwa Telecom, Taiwan Cellular, and Far EasTone have between them a total of 450,000 customers connected to their 3G networks, yet less than 10% of this total are actually using 3G phones. The remainder are reportedly using 2G phones with 3G subscriber cards.
Chunghwa Telecom, which claims to have 300,000 3G subscribers, is by some way the leading operator in this field. Taiwan Cellular, with 100,000 and Far EasTone with 50,000 3G customers are some way behind. However, in recent meetings with investors it appears that the trio have neglected to say that the actual number of customers with fully-fledged 3G phones is only 27,000 for Chunghwa and 10,000 for each of its rivals.
Naturally the management of the three big mobile operators blame the poor supply of next generation mobile phone handsets for the surprisingly low 3G customer base. According to a local news report there are fewer than ten 3G models on sale in Taiwan compared to over 60 for second generation phones. Far EasTone president Yang Lin-sheng claimed that many 3G handset vendors have delayed the introduction of their models to the Taiwan market.
In an effort to gain leverage with the handset suppliers, Taiwan Cellular has said it will cooperate with Singapore Telecom in a joint procurement process. Far EasTone says it will work with NTT DoCoMo to gain access to more 3G handsets. Chunghwa, however, says it will continue to go it alone; believing that it is large enough to get what it wants form suppliers.
Chunghwa Telecom is far more bullish than its two competitors about the potential for 3G in Taiwan. It recently bought 500,000 3G subscriber cards from a French supplier for just US$1.46 each. Chunghwa Telecom plans to use the card's high storage capacity to incorporate health-insurance card functions in it.
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