Prospects for the nation’s fifth-generation wireless systems (5G) market would be unfavorable if telecoms engage in price wars instead of developing innovative services to sustain their businesses in the long term, the National Communications Commission (NCC) said yesterday.
The warning came after Chunghwa Telecom introduced a fourth-generation (4G) service plan earlier this month that targets government workers, teachers, school staff and military personnel, charging users NT$499 per month for unlimited access to mobile Internet and unlimited phone calls between subscribers of the same network. Taiwan Mobile, Far EasTone Telecommunications and Asia-Pacific Telecom quickly followed suit, introducing the same plan to attract subscribers.
NCC spokesperson Wong Po-tsung (翁柏宗) said that the commission respects a free market system, but added: “If telecoms simply want to boost their market shares and revenue by luring subscribers from competitors, rather than with innovative business models, it would not be positive for the development of 5G in the nation.”
“What they are doing does not help to make the pie bigger. They are not benefiting from innovative business models that could sustain them through the maintenance and operation of 4G services, the auctioning of the 5G service spectrum and finally commercial operation of 5G,” Wong said.
“That would hamper sustainable development of the nation’s telecommunications industry,” he added.
While carriers in other countries have sought to provide original content by buying content producers or have expanded their businesses overseas, Taiwanese telecoms are unlikely to do so, Wong said.
“Either none of them are big enough to develop their businesses overseas, or the acquisition of content providers is out of the question because of regulations that ban the government, political parties and the military from investing in media,” Wong said.
Carriers need to have courage and stop offering unlimited data and call service at unreasonably low prices, which would hurt their development in the long term, Wong said.
It is not the first time that telecoms have engaged in price competition to attract subscribers since 4G was launched in 2014. Average monthly fees dropped from about NT$1,300 to below NT$1,000 within one year of the service being launched, in a bid to motivate people to upgrade to 4G.
The tactic was revived last year, with prices dropping further to NT$599 per month.
NCC statistics showed that mobile carriers’ revenue has declined from NT$53.2 billion (US$1.81 billion) in the second quarter of 2016 to NT$49.4 billion in the fourth quarter of last year.
Apart from a continued decrease in revenue from voice communication and a rapid increase in data transmission, industry experts have also attributed the decline in revenue to an ongoing price war.
The Executive Yuan yesterday announced that registration for a one-time universal NT$10,000 cash handout to help people in Taiwan survive US tariffs and inflation would start on Nov. 5, with payouts available as early as Nov. 12. Who is eligible for the handout? Registered Taiwanese nationals are eligible, including those born in Taiwan before April 30 next year with a birth certificate. Non-registered nationals with residence permits, foreign permanent residents and foreign spouses of Taiwanese citizens with residence permits also qualify for the handouts. For people who meet the eligibility requirements, but passed away between yesterday and April 30 next year, surviving family members
The German city of Hamburg on Oct. 14 named a bridge “Kaohsiung-Brucke” after the Taiwanese city of Kaohsiung. The footbridge, formerly known as F566, is to the east of the Speicherstadt, the world’s largest warehouse district, and connects the Dar-es-Salaam-Platz to the Brooktorpromenade near the Port of Hamburg on the Elbe River. Timo Fischer, a Free Democratic Party member of the Hamburg-Mitte District Assembly, in May last year proposed the name change with support from members of the Social Democratic Party and the Christian Democratic Union. Kaohsiung and Hamburg in 1999 inked a sister city agreement, but despite more than a quarter-century of
Taiwanese officials are courting podcasters and influencers aligned with US President Donald Trump as they grow more worried the US leader could undermine Taiwanese interests in talks with China, people familiar with the matter said. Trump has said Taiwan would likely be on the agenda when he is expected to meet Chinese President Xi Jinping (習近平) next week in a bid to resolve persistent trade tensions. China has asked the White House to officially declare it “opposes” Taiwanese independence, Bloomberg reported last month, a concession that would mark a major diplomatic win for Beijing. President William Lai (賴清德) and his top officials
‘ONE CHINA’: A statement that Berlin decides its own China policy did not seem to sit well with Beijing, which offered only one meeting with the German official German Minister for Foreign Affairs Johann Wadephul’s trip to China has been canceled, a spokesperson for his ministry said yesterday, amid rising tensions between the two nations, including over Taiwan. Wadephul had planned to address Chinese curbs on rare earths during his visit, but his comments about Berlin deciding on the “design” of its “one China” policy ahead of the trip appear to have rankled China. Asked about Wadephul’s comments, Chinese Ministry of Foreign Affairs spokesman Guo Jiakun (郭嘉昆) said the “one China principle” has “no room for any self-definition.” In the interview published on Thursday, Wadephul said he would urge China to
RSS