While the telecom market in Taiwan has been liberalized, there is still limited competition in the local broadband access market, which is dominated by Chunghwa Telecom. The incumbent's plan to wire up the entire island with its FTTH project is likely to increase its dominance in the fixed broadband market. The network advantage also enabled Chunghwa Telecom to gain dominance in the IPTV market.
Despite the heavy competition from cable TV providers, Chunghwa Telecom's IPTV service Multimedia on Demand reached nearly one million subscribers last year, mainly through service differentiation and premium content expansion. Being an integrated service provider, Chunghwa Telecom is paving its way for triple play.
The Taiwan telecom market is mature and competitive in both fixed and mobile sectors, but we see opportunity for growth, notably through operators' innovative service offerings and collaboration among the players in the Taiwan ICT ecosystem. Moving forward, this market has the potential to continue to impress us through new initiatives and cross-border collaboration.
Shi Min is a senior industrial analyst for telecom at Frost & Sullivan Asia Pacific
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MORE ARTICLES ON: Asia Pacific Broadband Telecom, Chunghwa Telecom, Far EasTone, Taiwan Mobile, VIBO Telecom