Local telecommunications operator Taiwan Star Telecom Co Ltd (台灣之星) expects to become profitable in 2018 after subscribers and revenue grow to an economically viable scale, a company executive said.
“We hope the combined 3G and 4G businesses could turn a profit by 2018, five years after operating 4G services for five years,” company vice president Shing Chu (朱曉幸) said on the telephone.
“We hope the growth in revenue and subscribers to absorb overall costs and expenses by that time,” Shing said.
Taiwan Star aims to attract 500,000 4G users by the end of this year, Chu said. Overall subscriptions are expected to reach 1.8 million this year, she said.
EKE OUT PROFIT
The nation’s big three telecommunications operators, led by Chunghwa Telecom Co (中華電信), aim to eke out profits from their 4G business within three years of operation, or next year, at the earliest.
Taiwan Star posted a NT$2.61 billion (US$79.87 million) loss for the first half of the year, widening from a NT$1.63 billion loss last year.
Revenue increased to NT$4.58 billion during the first half from NT$3.77 billion in the same period of last year.
To expand its customer base, Taiwan Star yesterday launched a new online subscription service and a floating pricing scheme.
Taiwan Star users do not subscribe to a fixed monthly rate, but pay based on usage, the company said.
Chu expects the new services to help grow subscribers from 15 percent to 20 percent.
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