International Internet service provider Sony Network Taiwan Ltd (索尼通訊網路) said yesterday that it is scheduled to absorb 10,000 Net subscribers from a local competitor by the end of November.
"I believe this practice is an efficient way to benefit our market know-how and market share in Taiwan," said Yuichi Ejiri, chief operating officer of Sony Network.
Sony Network is a joint venture between Japan's Sony Communication Network and KG Telecommunications Co Ltd (和信電訊) of Taiwan.
The establishment of the venture, also known as So-net Taiwan, was first announced in April with Sony holding an 85 percent stake.
Entering Taiwan's Internet service market in August, Sony hopes to attract another 100,000 users by March next year.
According to Ejiri, the company currently has approximately 20,000 Net service subscribers and the deal is expected to bring 10,000 new customers into its fold.
Ejiri said Sony would like to align with other Internet service providers in the near future, but stressed "the cooperation should be more than just taking over customers.
"We would like to meet each other's needs and find a win-win situation," Ejiri said.
In addition to increasing market share with the alliance, Sony is also authorized to use the backbone of its partner's network.
Sony said that the network will enable the company to expand its service into other parts of Taiwan.
The local partner, New Silkera Network Corp (
New Silkera began offering Internet service in 1994.
"We have estimated if we want to balance operational costs, 60,000 subscribers is the minimum number that we need," said Ray Tracy (游允毅), chief technology officer of New Silkera.
Meanwhile, a local market watcher said that although Sony's market is expanding, it will be hard for a small-sized Internet service provider to up profits in the current economic climate.
"When a market is in a price war, unless you are the market leader you can't expect to make money from it," said Jack Hsu (徐瑞宏), an analyst at the Market Intelligence Center.
"I prefer to regard it as a long term investment and don't expect to be profitable any earlier than 2003," Ejiri said.
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