Taipei – According to Pyramid Research, Taiwanese operators are likely to focus on the provision of value-added services this year, including mobile data, mobile content, broadband access, and applications. The country’s broadband market is expected to be one of the areas of greatest activity in Taiwan’s communications market over the next five years, as migration to higher-speed, fibre-optic connections and the promotion of value-added services fuel its growth, the report adds. These growth areas are hoped to partially offset another tough year for the country’s operators, following a mandate last January by the National Communications Commission (NCC) to cut their monthly charges to consumers. “In January 2010, regulator NCC mandated that Taiwan’s operators must cut their fixed monthly rents by 5.686 percent and their mobile 2G and 3G services by 5.87 percent, all in an effort to provide some reprieve to consumers badly hit by the economic crisis of 2009,” said Daniel Yu, analyst at Pyramid Research and author of the report. “Regulators expect consumers to recognise savings of more than S$100 million per year as a result of these rate cuts, a significant hit to Taiwan’s service providers.” Yu added, “We expect mobile broadband to grow at a CAGR of 15 percent between 2010 and 2015, reaching S$352 million in revenue at the end of the forecast period. Migration to fibre, high-speed 20 Mbps+ connections, IPTV, and HD will fuel fixed broadband growth over the next five years, enabling the market to generate S$ 1.8 billion by 2015.”
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