IHS Global Insight Perspective | |
Significance | Far EasTone has started offering WiMAX in the south of Taiwan. |
Implications | The launch is in line with the Taiwanese government’s initiatives to establish island-wide wireless broadband Internet services infrastructure. |
Outlook | More WiMAX licencees will launch services, but the speeds of network roll-out have been hindered by funding difficulties and uncertain customer demands. |
Far EasTone, Taiwan’s third-largest telecoms operator, said its WiMAX service would mainly serve as an alternative to existing fixed Internet access at home and at work, reports the Taipei Times. "With this technology, we can offer connections at speeds and quality that equal, or even surpass any wireline service available today," Jan Nilsson, vice-chairman and president of Far EasTone, said at a press conference in Taichung. Nilsson added the 3.5G mobile technology is more appropriate for mobile phone users who sought instant access and convenience, while WiMAX is more suitable for Internet-heavy netbook users who are likely to download large files, movies, music or to play games on the Internet. The company said it had about 100 WiMAX sites in Taichung and intends to deploy more in southern parts of the country, including Tainan, Chiayi, and Kaohsiung, in the first half of next year. In addition, the company is now in talks with other WiMAX licence holders including Global Mobile Corp, Tatung InfoComm Co and VMAX Co to provide WiMAX roaming services to areas beyond its service areas.
Far EasTone is offering the WiMAX services at a monthly fee of NT$599 (US$18.5) for unlimited wireless Internet access along with a free WiMAX dongle, or Customer Premise Equipment (CPE). In comparison, Chunghwa Telecom, the island’s largest telecoms operator, charges NT$850 for a 3mps wireline Internet connection. Far EasTone said its WiMAX services offer wireless transmission with speeds of between 4 Mbps and 6 Mbps, faster than the most popular fixed Internet access, which typically reaches 2 Mbps.
Outlook and Implications
- Second WiMAX Service in Taiwan: Far EasTone was the only one of the country's three major telecoms operators to have obtained a licence to offer WiMAX. The licence granted to Far EasTone only allows the operator to offer WiMAX services in southern Taiwan. Tatung and Vee Telecom Multimedia are also licensed to offer WiMAX services in the south, while Vmax Telecom, First International Telecom, and Global Mobile are licensed to offer WiMAX access in northern Taiwan. So far, only Tatung has launched a commercial service, as funding difficulties, coupled with uncertain customer demands, had delayed other licensees' roll-out plans (see Taiwan: 29 April 2009: Tatung Launches WiMAX Service in Taiwan).
- Government Support for WiMAX: Taiwan is one of the few countries which have been actively promoting the deployment of WiMAX technology. The Taiwanese government has allocated a five-year development budget of US$1.2 billion for its "M-Taiwan" project, a programme aimed at establishing island-wide wireless broadband internet services infrastructure. The issuance of six regional WiMAX licences in 2007 was part of the initiative. The government also plans to auction at least one 10-year, island-wide licence in the future, but regional licensees may gain nationwide deployment rights earlier if they merge (see Taiwan: 26 July 2008: Six WiMAX Licence Winners Announced in Taiwan).
- Vender Coordination: In addition, the government has signed co-ordination agreements with the likes of Intel, Fujitsu, and Sprint Nextel to boost the development of WiMAX technology on the island. For example, Intel has planned to invest US$500 million in the WiMAX business in Taiwan over a five-year period (see Taiwan: 9 October 2008: Intel to Invest US$500 mil. in WiMAX Operations in Taiwan over Five Years).