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Taiwan Mobile Co expecting big 3G uptake this year

Taiwan Mobile Co (台灣大哥大), the nation's second-largest telecom operator, expects its third-generation (3G) subscribers to double to 2.6 million this year as it plans to launch more affordable packages in an effort to spur demand, a company executive said yesterday.

Taiwan Mobile's remarks came after the industry leader, Chunghwa Telecom Co (中華電信), said last week that it was set to offer free 3G handsets for new subscribers with a minimum monthly bill as low as NT$383 to encourage 3G uptake.

"We believe the 3G market is ready to take off this year. Local operators will increase marketing activities," said Cliff Lai (賴弦五) chief operating officer of Taiwan Mobile.

The company had 1.3 million 3G users as of the end of last year. In total, Taiwan Mobile has about 6 million mobile users.

Local operators are pinning hopes on boosting data-oriented 3G subscriptions to spur stagnated revenue growth as the voice market is nearing saturation, Chunghwa Telecom said. The nation has about 20 million mobile users.

Taiwan Mobile will increase handset subsidies slightly this year from last year's NT$3,000 to NT$4,000 per subscription to encourage its second-generation (2G) users to upgrade to 3G as well as to snare users from other players, Lai said.

Starting as soon as the second quarter, Taiwan Mobile will follow Chunghwa Telecom's example by offering free, or NT$1, 3G phones for general users, Lai told reporters on the sideline of a press briefing to launch new rate packages for heavy 3G users.

The new rate plans would add 300,000 new 3G users with monthly payments higher than NT$600 within a year after the launch, he said.

Consumers subscribing to the new services will be able to choose an eight-hour or 12-hour period of free calls within the Taiwan Mobile network by paying a NT$688 or NT$988 monthly fee on a two-year contract, in addition to at least NT$1,790 for a 3G phone.

Taiwan Mobile and Far EasTone Telecommunications Co (遠傳電信) shares fell 0.56 percent and 0.36 percent to NT$44.7 and NT$41.14, respectively yesterday. Chunghwa Telecom advanced 0.44 percent to NT$69.1.
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