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Telecom expo offers look at 3G service

"Now with all the operators planning to unveil this service [by the year's end], it will certainly boost the popularity of 3G applications and make it more affordable."

Chen Chang-rong, managing director of Chunghwa Telecom's marketing department

With the top two mobile service providers aiming to launch their long-anticipated third-generation (3G) service this month and another one by the year-end, the upcoming four-day telecommunications exposition starting this Friday in Taipei is poised to become a hard-fought battle to secure subscribers.

State-run Chunghwa Telecom Co (中華電信), Taiwan's largest phone company, announced on Monday that it will launch its new high-speed 3G operations on July 26, squashing market rumors that it might have been forced to postpone its adoption of the new technology to September, as the company's focus has shifted to privatization and luring foreign investors.

But the preferential deals it offers to subscribers have dropped a depth-charge in the heavily invested market. During the two weeks before its formal launch, Chunghwa Telecom is offering pre-paid 3G-compliant handsets for only NT$1 while they are generally priced at up to NT$14,000 (US$440) each.

This strategy has stimulated Far EasTone Telecommunications Co (遠傳電信), the No. 2 mobile carrier, to advance the date of its G3 rollout to today, a week earlier than the original schedule.

Whether it will present killer pricing policies to secure its subscriber base remains to be seen in the press briefing today.

The data-oriented 3G service allows mobile users to download music or streaming video clips from the Internet onto a handset. Mobile phone applications will be focused more on "watching" than "hearing."

The industry front-runner, Asia Pacific Broadband Wireless Communications Inc (亞太行動寬頻), launched the nation's first 3G service in July 2003 but failed to reach its target of 700,000 subscribers in the first six months because of a limited supply of 3G-compatible handsets and slow customer demand.

The market appears to have matured this year, prompting Taiwan Mobile Co (台灣大哥大) to soft-launch its 3G services in May and plan a commercial launch after next month.

"Now with all the operators planning to unveil this service [by the year's end], it will certainly boost the popularity of 3G applications and make it more affordable," said Chen Chang-rong (陳長榮), managing director of Chunghwa Telecom's marketing department.

Vibo Telecom Inc (威寶電信), a latecomer in the domestic telecommunications market, plans to establish 3,600 base stations nationwide by September before launching its service early in the fourth quarter.

"By the end of next year, new developments in 3G-service applications will enter a more stable phase. We'll also secure around 800,000 subscribers," or 16 percent of a projected total of 5 million 3G users nationwide, said David Wang (王柏堂), president and CEO of Vibo Telecom.

For those curious about the magic of the much-hyped 3G service, the upcoming Taipei International Telecommunications and Networking Show from Friday through next Monday offers a good opportunity to experience and compare various services and packages provided by the five market players.

The trade show, held at Taipei World Trade Center Exhibition Hall I, features 106 exhibitors showcasing 3G and Internet-phone applications -- two future trends in the telecom world.

While visitor numbers are expected to rise by 5 percent to 10 percent from 70,000 people last year, organizers are optimistic about the munificent orders placed by overseas buyers.

"A total of 10 foreign telecom companies from Brazil, India, South Korea and others will place orders estimated at US$200,000 to purchase Internet-phone, networking and communications facilities during the four-day show," according to a press release issued by the co-organizer, Taiwan External Trade Development Council (TAITRA, 外貿協會).
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