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.
Rain is to increase from Wednesday morning as Severe Tropical Storm Kong-Rey approaches, with sea warnings to be issued as early as tomorrow afternoon, the Central Weather Administration (CWA) said today. As of 8am, Kong-Rey was 1,050km east-southeast of the Hengchun Peninsula (恆春) heading in a northwesterly direction toward Taiwan, CWA Forecast Center Director Lin Po-tung (林伯東) said. Rainfall is to increase from Wednesday morning, especially in northern Taiwan and Yilan County, he said. A sea warning is possible from tomorrow afternoon, while a land warning may be issued on Wednesday morning, he added. Kong-Rey may intensify into a moderate typhoon as it passes
Hong Kong singer Andy Lau’s (劉德華) concert in Taipei tonight has been cancelled due to Typhoon Kong-rei and is to be held at noon on Saturday instead, the concert organizer SuperDome said in a statement this afternoon. Tonight’s concert at Taipei Arena was to be the first of four consecutive nightly performances by Lau in Taipei, but it was called off at the request of Taipei Metro, the operator of the venue, due to the weather, said the organizer. Taipei Metro said the concert was cancelled out of consideration for the audience’s safety. The decision disappointed a number of Lau’s fans who had
Taiwan yesterday issued warnings to four Chinese coast guard vessels that intruded into restricted waters around the Taiwan-controlled Kinmen Islands, according to the Coast Guard Administration (CGA). The four China Coast Guard ships were detected approaching restricted waters south of Kinmen at around 2 pm yesterday, the CGA’s Kinmen-Matsu Branch said in a statement. The CGA said it immediately deployed four patrol boats to closely monitor the situation. When the Chinese ships with the hull numbers "14512," "14609," "14603" and "14602" separately entered the restricted waters off Fuhsing islet (復興嶼), Zhaishan (翟山), Sinhu (新湖) and Liaoluo (料羅) at 3 pm, the Taiwanese patrol
MUCH-NEEDED: After China demonstrated its capabilities to deploy vertical launching systems, Taiwan needs air defense systems such as NASAMS, a defense expert said The US’ approval of exports of three advanced air defense missile systems to Taiwan signified NATO’s goodwill toward the nation, a Taiwanese defense expert said. The US Defense Security Cooperation Agency on Friday announced the US$1.16 billion sale of the National Advanced Surface-to-Air Missile System (NASAMS) and the US$828 million sale of AN/TPS-77 and AN/TPS-78 radar turnkey systems. The NASAMS is a network that uses ground-launched Air Intercept Missile (AIM)-120 Advanced Medium-Range Air-to-Air Missiles (AMRAAM) to intercept hostile aircraft, drones and cruise missiles. Su Tzu-yun (蘇紫雲), director of defense strategy and resources at the state-funded Institute for National Defense and Security Research, said
RSS