Market Trends of Taiwan Telecom Industry
Voice Services are Witnessing a Strong Growth Rate
- Increased adoption of smartphones and rising internet connectivity in Taiwan have fueled the demand for voice services. GSMA projects that smartphone adoption in Taiwan will surge to 96% by 2030, up from 86% in 2023. Additionally, the rapid deployment of 5G networks and a maturing device ecosystem have accelerated 5G adoption beyond initial expectations.
- Wired communication media, known for its superior stability compared to wireless counterparts, is witnessing heightened demand. Wired connections are less susceptible to external interferences, as they rely on physical wires for data transmission. This stability makes wired communication ideal for professional applications, boasting faster speeds than wireless alternatives.
- The default voice codec in 5G smartphones leverages the 3GPP's standardized enhanced voice services (EVS). While EVS can function on 4G networks, its use has yet to be universal. Notably, EVS promises superior voice quality compared to the narrowband and HD voice offerings in 2G to 4G networks.
- Further, AI and ML are revolutionizing the 5G-Advanced technology landscape. A prime example is Chunghwa Telecom, which leverages AI-driven smart energy solutions to reduce potential energy consumption while maintaining a top-notch user experience. This breakthrough highlights the viability of a high-performing, sustainable network and its importance in handling the surge in mobile data, especially from advanced applications.
- In December 2023, Taiwan Mobile, a consistent member of the "Taiwan Sustainability Index" for six years, made significant strides. Its merger with Taiwan Star formed the formidable "5G Team Taiwan." Leveraging 5G NR Carrier Aggregation technology, Taiwan Mobile is consolidating the 60MHz and 40MHz bands in the 3.5GHz spectrum, offering users an unprecedented 100MHz 5G bandwidth. Taiwan Mobile aims to complete the network integration by 2024.
- Moreover, the adoption of cloud-native architecture is becoming paramount for communication service providers, especially with the advent of 5G and the looming 6G era. By decoupling software from hardware, cloudification boosts network efficiency and automation and emerges as a linchpin in cost management within the increasingly intricate network landscape.
Understand The Key Trends Shaping This Market
Download PDF
Rise of OTT to Support the Growth of the Taiwanese Telecom Market
- In Taiwan, changing consumer habits are driving a surge in popularity for over-the-top (OTT) platforms as more households pivot from traditional cable TV to audiovisual content on their mobile devices, computers, and smart TVs. This shift is part of a broader trend where viewers seek more flexible and on-demand content options.
- GSMA reports that in 2023, Taiwan's subscriber penetration hit 95%, which is projected to climb to 96% by 2030. The country witnessed a significant increase in internet subscribers during the COVID-19 pandemic, a trend expected to fuel the demand for data and messaging services in the post-pandemic landscape. This increase in internet penetration also drives the growth of digital services and online entertainment.
- Streaming giants such as YouTube and Netflix are reshaping how Taiwanese audiences consume content, offering a more personalized viewing experience. These platforms provide vast content that caters to diverse tastes and preferences, making them highly attractive to modern viewers. In Taiwan, Netflix, YouTube, and Disney+ reign as the top OTT platforms, with Disney+ notably outpacing its global counterparts in growth. The rapid adoption of these services highlights a significant shift in consumer behavior toward digital media consumption.
- Streaming music and video, over-the-top (OTT) media, is a burgeoning trend in Taiwan. The market has swiftly expanded, with many platforms offering diverse original content. Consequently, the OTT landscape has evolved into a fiercely competitive arena. To carve a niche, these local platforms are now strategizing to differentiate themselves.
- In March 2024, 17LIVE Group Limited and mm2 Asia Limited inked an MoU to bolster their entertainment offerings and production capabilities. This partnership fosters closer ties between 17LIVE, Taiwan's premier live-streaming platform, and mm2, a prominent media and entertainment entity.
- Taiwan's audiovisual sector focuses on the evolution of over-the-top (OTT) media services. These services, delivered directly over the Internet, are a focal point for the Taiwanese government. They aim to fortify the local OTT industry and ensure a balanced playing field for international and domestic operators. Such initiatives are poised to fuel the growth of OTT and PayTV services in Taiwan's telecom market.
