Friday, November 2, 2007

Taiwan market: Saturated market for mobile voice services forcing MVNOs to cut prices and push data communications

Kaddy Chung, Taipei; Adam Hwang, DIGITIMES [Wednesday 31 October 2007]

With several MVNOs (mobile virtual network operators) already operating in the Taiwan market, there appears to be almost no room for their voice communication services, according to industry sources.

The Taiwan market for mobile voice communications is approaching saturation, the sources pointed out. Therefore, MVNOs, while offering discount prices for voice communications to maintain the user bases, are making efforts to encourage subscribers to use data communication services, the sources indicated.

Arcoa and Aurora Telecom, two existing MVNOs, have attained 50,000 and 40,000 subscribers since beginning operations in September 2006 and July 2006, respectively, the sources noted. President Chain Store, the operator of Taiwan's largest convenience store chain, 7-Eleven, has applied for an MVNO license through cooperation with Far EasTone Telecommunications, one of the top-three mobile telecom operators in Taiwan, the sources pointed out.

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