Taiwan’s telecom market is overcrowded, which might make prices for 5G services the lowest in the world, given the intense competition, Taiwan Mobile Co (台灣大哥大) said yesterday.
The five 4G operators in Taiwan obtained 5G licenses and bandwidth this year, paving the way for the commercial launch of high-speed, low-latency wireless services in the next few months in Taiwan.
“My feeling is it is too crowded to have five players” in a small market like Taiwan, Taiwan Mobile chairman Daniel Tsai (蔡明忠) told reporters following the company’s annual shareholders’ meeting in Taipei.
Photo: Lisa Wang, Taipei Times
“Taiwan has the world’s lowest fees for 4G services,” Tsai said.
“Taiwan’s 5G fees could likewise be the lowest in the world due to the competition,” he said.
It is difficult to calculate a reasonable monthly fee for 5G services, as Taiwan Mobile might continue to invest in 5G bandwidth, he said.
The 60 megahertz (MHz) that Taiwan Mobile acquired in the 3.5 gigahertz (GHz) band in this year’s auction would be not enough to deliver full 5G service, he said.
Chunghwa Telecom (中華電信) secured 90MHz in the 3.5GHz band, while Far EasTone Telecommunications Co (遠傳電信) secured 80MHz.
Taiwan Mobile would need more bandwidth when 5G technology becomes mainstream, along with new equipment and applications, Tsai said.
The government has capped 5G flat rates at NT$1,399 (US$47.18) per month, which is slightly lower than in South Korea, which has a cap equivalent to just over NT$2,000, Tsai said.
“I would prefer [the cap to be] NT$3,399,” he said.
As most local 4G services providers have not recovered network construction costs, it would be a headache for operators to budget heavy expenditure on 5G infrastructure, he said.
“Eventually, the prices would be determined by the market,” he said.
Taiwan Mobile called on the nation’s biggest telecom operator, Chungwa Telecom, to set a model for peers and maintain disciplined pricing.
Asked about over-the-top (OTT) services, Tsai said that Taiwan Mobile has a goal to become the nation’s biggest provider of the media, Tsai said.
Taiwan Mobile offers its OTT services via the Myvideo platform.
It would continue investing in TV dramas and original content with Taiwan Public Television, HBO and Netflix, after Workers and The Victims’ Game became hits soon after their releases, he said.
Meanwhile, Taiwan Mobile shareholders have approved a proposed cash dividend of NT$4.75 per common share.
The company allocated capital surplus to help pay the dividend.
Last year, the company made NT$12.5 billion in net profit, or NT$4.51 per share.
RECORD BUDGET: TSMC does plan to raise its proposed capital expenditure a lot, and could benefit if Intel outsources more of its production to foundries, analysts said Intel Corp’s earnings conference call on Thursday is expected to clarify the US semiconductor giant’s outsourcing production plans, which would be crucial regarding Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) performance, analysts said. “TSMC stands to benefit if Intel outsources more of its fabrication to foundries,” SinoPac Securities Investment Service Corp (永豐投顧) analysts said in a note on Friday. Yuanta Securities Investment Consulting Co (元大投顧) was more cautious, saying that Intel’s contribution initially would be limited, but its outsourcing plans would still highlight TSMC’s leadership in technology, it added. “Intel will continue to manufacture server or high-end central processing units [CPUs], which have higher
MediaTek Inc (聯發科) yesterday announced it would give incentive bonuses totaling NT$1.7 billion (US$59.7 million) to its employees and those at the firm’s major subsidiaries, after the smartphone chip supplier’s revenue hit US$10 billion last year. This is the biggest incentive bonus the Hsinchu-based handset chip designer has ever distributed in its 23-year history. About 17,000 full-time employees of MediaTek and five of its subsidiaries, including Richtek Technology Corp (立錡科技) and Airoha Technology Corp (絡達科技), would receive a “red envelope” of NT$100,000 each, the company said. “Surpassing US$10 billion is just the beginning. We will continue to [grow] on this basis,” MediaTek
TO SPUR REVENUE: The contract chipmaker expects its profit to grow 15 percent this year, outpacing the foundry industry’s projected advance of about 10 percent Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday raised its projected capital spending for this year by 62 percent, a new high, in an attempt to satisfy customer demand for advanced technologies in the production of central processing units, high-performance-computing (HPC) devices and 5G applications. After investing US$17.24 billion last year, TSMC this year plans to spend US$25 billion to US$28 billion on manufacturing equipment and new facilities, including a fab in the US. About 80 percent of the budget would be allocated for developing advanced technologies including 3, 5 and 7-nanometer technologies, the company said. The larger-than-expected capital spending prompted speculation
CHINESE TIE-UP: The firm said its services with Zhejiang Geely would be related to vehicles, parts, intelligent drive systems and automotive ecosystem platforms Apple Inc’s local manufacturing partner Hon Hai Precision Industry Co (鴻海精密), known as Foxconn Technology Group (富士康科技集團) outside of Taiwan, is setting up a vehicle venture, strengthening its automotive capabilities at a time when technology companies, including its California ally, are looking to expand in automaking. Hon Hai is joining forces with Chinese automaker Zhejiang Geely Holding Group Co (浙江吉利控股集團) to provide production and consulting services to global automotive enterprises, the companies said in a statement yesterday. The production and consulting services are related to whole vehicles, parts, intelligent drive systems and automotive ecosystem platforms, Hon Hai said in a filing with