Nation's first 3G service launched

Taiwan Mobile Co (台灣大哥大), the nation's third largest mobile operator, debuted its high-speed third-generation (3G) service yesterday, making it the first company to offer the data-oriented service in Taiwan.

Wireless service providers have been cautious about rolling out 3G services owing to a lack of useful applications and the heavy financial burden involved in setting up infrastructure for the high-speed networks. But this started to change after handset vendors began offering more 3G-capable models at lower prices.

In a soft launch yesterday, Taiwan Mobile announced that it would offer its 3G subscribers a bouquet of free data services, including the ability to make video calls and watch movie trailers, instant news and entertainment briefs on their handsets.

"We believe the launch will be met with a strong response from the [telecoms] market," Taiwan Mobile president Harvey Chang (張孝威) said.

"The most difficult period for 3G operators has passed after handset prices began falling rapidly while the availability of mobile phones increased. Now the number of 3G users is taking off around the world," he said.

Taiwan Mobile hopes to attract 100,000 clients to its 3G network by the end of the year, Chang said.

The company is marketing its 3G-service under the name "Catch 3." The package will enable users with the new handset models to download video clips about 10 times faster than current models using 2.5G technology, he said.

The new service should boost the average revenue per user of Taiwan Mobile's data service by 20 percent, Chang said.

The company expects that as many as 300,000 of its 6 million subscribers will gradually switch to the new service in the long term.

Chunghwa Telecom Co (中華電信), the nation's biggest phone company, is planning to unveil its 3G service sometime in July, company spokesman Shih Mu-piao (石木標) said yesterday.

"We believe the time is ripe to launch the service, as mobile operators are almost ready with their 3G equipment and handset makers are able to provide more models for consumers to choose from," Shih said.

By the end of the year, handset vendors will be offering about 15 models for local 3G users, he said.

Chunghwa Telecom aims to grab 100,000 3G users within the first six months after the launch, which would account for a third of the nation's 3G subscribers, Shih said.

He added that his company would provide more handset subsidies to spur demand.

Shih predicted that the number of 3G users in Taiwan would grow to between 300,000 and 400,000 by the end of this year.

Far EasTone Telecommunications Co (遠傳電信), Taiwan's second largest cellphone service provider, is expected to launch a 3G service by mid-July, as its license requires the company to meet this deadline.

Capital spending of the nation's three major mobile telecom operators is expected to add up to around NT$30 billion by the end of the year, according to the companies' statistics.