Taiwan’s mobile market is fiercely competitive, led by three major carriers: Chunghwa Telecom, FarEasTone, and Taiwan Mobile, and two smaller carriers: Asia Pacific Telecom (GT) and Taiwan Star (T Star) It has been. Earlier this year, his two major mergers of carriers were approved and are expected to change the country’s telecom competitive environment. This article examines the current state of 5G in Taiwan before the mergers take place and assesses the potential impact of these mergers on Taiwan’s telecommunications market.
Important points
- The recent merger will change the dynamics of Taiwan’s mobile market. The number of carriers will be reduced from five to three, each with equal market share. Far EasTone and Taiwan Mobile will inherit additional spectrum bandwidth as a result of the merger, allowing both operators to enhance customer experience, introduce new services, and compete more effectively with the largest operator, Chunghwa Telecom. It will look like this.
- Taiwan’s 5G network performs well compared to other countries in the region. The median download speed of Taiwan’s 5G network in Q3 2023 was 263.35 Mbps, surpassing other countries in the region such as Vietnam, China, Hong Kong, the Philippines, and Japan.
- Chunghwa Telecom is leading the way in terms of 5G download speeds. based on speed test intelligence® Data from Q2-Q3 2023 shows that Chunghwa Telecom had the fastest median download speed with a reported speed of 361.83 Mbps.. Far EasTone and Taiwan Mobile took second and third place respectively. GT and T Star ranked him 4th and 5th, with median download speeds of 190.48 Mbps and 113.85 Mbps.
- Chunghwa Telecom’s 5G network provides 5G coverage in 97.6% of locations in Taiwan. China’s 5G network reached more locations on the island than its competitors, with Far EasTone in second place at 88.9% and Taiwan Mobile at 85.6%.
Changes in Taiwan’s communications situation
The Asia Pacific telecommunications market has seen several notable mergers and acquisitions in recent years. This trend is primarily due to heavy investments in 5G technology as companies seek to remain competitive in the market and sustain growth in the face of economic challenges. The Taiwanese market is one example, approved by the National Communications Commission (NCC). Merger of two mobile phone companies This will significantly change the situation in Taiwan’s telecommunications market.
Merger will intensify market competition with the three major companies
The two mergers involve the combination of two large carriers and a smaller carrier. The first merger included Integration of Taiwan Mobile and Taiwan Star Telecom (T Star)in the second merger, Far EasTone partners with GT parent company Asia Pacific Telecom (APT). As a result of the merger, the number of carriers will be reduced from five to three with equal market share. More importantly, it will give the new entity more scale and enable it to compete directly with Chunghwa Telecom, the current largest carrier.
The combined carrier could bring more competition to Chunghwa Telecom in all market segments, not just mobile. For example, the newly merged entity may consider integrated services to compete with Chunghwa Telecom, which currently leads the fixed broadband market share and differentiates its services through value-adds and bundled packages.
Additional spectrum for combined entity 5G usage
When these businesses merge, the synergies will bring significant benefits. Far EasTone and Taiwan Mobile will inherit the spectrum bandwidth previously held by his two disbanded entities, increasing their competitiveness in the market. The increase in available resources enables more efficient use of 5G spectrum, optimizing network infrastructure and reducing energy usage by eliminating redundant base stations, resulting in more cost-effective A highly efficient network will be realized.
Following the merger, Far EasTone will own 28 GHz spectrum, increasing from 400 MHz to 800 MHz, in addition to the 80 MHz of 3.5 GHz band it originally acquired. Taiwan Mobile will own a 100 MHz block of the 3.5 GHz band, making it the operator with the most medium frequency bandwidth capacity in the market. As for the 28 GHz high band, Taiwan Mobile only has 200 MHz, much less than Far EasTone’s 800 MHz and Chunghwa Telecom’s 600 MHz. The additional spectrum bandwidth will greatly help improve the customer experience and introduce new enterprise products following the merger.
While additional spectrum is welcome, according to regulations, carriers can only own up to a third of the available spectrum. After the merger with Taiwan Star, Taiwan Mobile will own 60MHz of sub-1GHz spectrum, which is more than one-third of the total available. 10MHz of frequency must be sold. Similarly, after the merger with GT, FET will have to relinquish surplus spectrum in bands below 3GHz, bands from 3GHz to 6GHz, and bands above 24GHz. It is still unclear how these carriers will sell their excess spectrum.
NCC scrutiny of coverage and service enhancements
The Taiwanese market is undergoing significant changes and will naturally require thorough regulatory oversight to ensure a smooth transition. Apart from the aforementioned disposal of surplus bandwidth, the NCC also imposed additional conditions such as coverage targets and ensuring uninterrupted subscriber service during the transition period.
Both Taiwan Mobile and Far EasTone need to increase island-wide 4G coverage to 99% of the population, and 5G coverage to at least 98% by 2027. Telecom operators should also look for ways to reduce their carbon emissions and implement it effectively. By introducing an energy-saving system, we have achieved energy savings of approximately 160 million kWh per year.
5G in Taiwan performs better than 5G in other regions
Taiwan rolled out 5G networks in 2020, and Chunghwa Telecom became the first operator to introduce 5G services in July of the same year. Since then, Taiwan has experienced significant growth in mobile performance, especially 5G performance, compared to other countries around the world.
In the third quarter of 2023, speed test intelligence® Data shows that Taiwan’s 5G network achieved a median download speed of 263.35 Mbps, outperforming networks in regions such as Vietnam (257.95 Mbps) and China (245.94 Mbps). Additionally, Taiwan’s 5G network was significantly faster than Hong Kong (136.51 Mbps), the Philippines (124.58 Mbps), and Japan (102.72 Mbps).
Chunghwa Telecom ranks first in 5G performance in Taiwan
Based on Speedtest Intelligence data, Chunghwa Telecom reported that Taiwan had the fastest median 5G download speeds from Q2 to Q3 of 2023. The median download speed was 361.83 Mbps, and the median upload speed was 34.22 Mbps. Far EasTone and Taiwan Mobile took second and third place respectively. Small carriers GT and T Star had median download speeds of 190.48 Mbps and 113.85 Mbps, placing them fourth and fifth in the rankings.
Taiwan 5G coverage
Taiwan’s topography consists of rugged mountains that run the length of the island, but the western part, where most of the population lives, is relatively flat. This contrast poses significant challenges in providing nationwide 5G coverage. To assess the reach of a carrier’s 5G network, we looked at Speedtest Intelligence data and plotted where you can access her 5G across the island. The results are shown in the map below.
Chunghwa Telecom’s 5G network has been extended farthest across Taiwan. 97.6% of locations will have 5G coverage from Q2 to Q3 2023. Far EasTone followed with 88.9% and Taiwan Mobile with 85.6%. His 5G footprints for GT and T Star are nearly comparable, reported at 49.7% and 49.0%, respectively.
The full impact of the merger will become clear over time
It may take some time for the effects of the two mergers to be felt. In fact, it could be years before consumers benefit from the newly combined entity. However, one thing is certain: the reduction of Taiwan’s major carriers from his five to three will change the competitive landscape of the market. We will continue to monitor the progress of these mergers and how they impact mobile performance in Taiwan. If you’re interested in performance benchmarking or want to learn more about internet speed and performance in other markets around the world, Visit Speedtest Global Index™.
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