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2006 Asia - Telecoms, Mobile and Broadband Hong Kong, Macau, Taiwan


Attention: There is an updated edition available for this report.

This report provides a comprehensive overview of the trends and developments in telecommunications, broadcasting and pay TV markets in Hong Kong, Macau, Taiwan. Subjects covered include:

Key Statistics
Market and Industry Overviews
Regulatory Environment
Major Players (fixed and mobile)
Infrastructure
Mobile Voice and Data Markets
Internet, VoIP, IPTV
Broadband (FttH, DSL, cable TV, wireless)
Convergence and Digital Media


Hong Kong is seen as one of the most sophisticated and dynamic telecommunications markets in the world. A Special Administrative Region (SAR) of China, it has built itself a world-class telecoms infrastructure, which supports one of the world’s highest penetrations of mobile phones and telephone services generally. At the start of 2006, the territory had almost 3.8 million fixed telephone lines in service, giving a teledensity of around 54%, amongst the highest in Asia as well as in the world. Whilst the fixed-line market has flattened out, the mobile market has continued to boom. At the beginning of 2006, based on Office of the Telecommunications Authority (OFTA) data, there were an amazing 8.6 million mobile subscribers, representing an impressive penetration of 123%. Not surprisingly, new generation mobile services have started reshaping the mobile market.

Digitalised since 1995, the territory has been wired with 400,000km of optical fibre. This extensive broadband network covers the vast majority of households and provides the basis for a wide range of existing and future telecommunications services. As a result of its extensive infrastructure roll-out, Hong Kong moved quickly to provide more than 90% of households with broadband access. Broadband subscribers in Hong Kong had jumped to almost 1.7 million by early 2006, having increased by 1 million in quick time.

Since 1998 the government has adopted a strongly proactive attitude to telecommunications and has taken some specific steps aimed at turning Hong Kong into a regional technology hub. OFTA, Hong Kong’s regulatory body, has been keen to promote the idea that the successful Hong Kong telecoms market has been due to positive action in respect of licensing procedures and an absence of restrictions on foreign investment. The government’s ‘open sky’ policy has been an example of this proactive approach.

Macau, also a Special Administrative Region (SAR) of China, has remained very low profile compared with Hong Kong in the development of its telecommunications market. Macau has systematically gone about building itself a strong modern telecommunications infrastructure and lays claim to a highly penetrated telecom market. Fixed lines reached a saturation point at 40% teledensity a few years ago. Now attention is focused on the mobile market, where by early 2006 there were 563,000 mobile subscribers, a remarkable penetration of 113%. Macau has also been quick to adopt Internet in its various forms with strong encouragement from the administration. Broadband Internet access, using Asymmetrical Digital Subscriber Line (ADSL), has been developing quickly and by April 2006 over 80% of all Internet subscriptions in Macau were broadband based.

Rapid growth in the Macau mobile sector can be attributed to the opening of the mobile market in August 2001 to two new operators, which began competing strongly with Macau Telecom. Macau Telecom’s market share had dropped to about 46% by April 2006.

Taiwan With its strong focus on the role of technology, and telecommunications in particular, throughout its economy, it is not surprising that Taiwan has one of the most advanced telecommunications networks in Asia. With excellent telecommunications infrastructure in place and the innovative use of breakthrough information technologies, the country continues to be well placed to drive both mobile and data communications services. There has been a real boom in telecom development. Annual telecommunications service revenues are around US$10 billion and investment in telecoms infrastructure is of the same order. By end-2005, fixed-line telephone penetration was around 60% and mobile penetration was 99%. The mobile figure had fallen from a peak of more than 111% in 2003. Through 2005 and into 2006 the highly penetrated mobile market was experiencing some volatility. The launch of 3G services by the three major operators was certainly presenting a healthy challenge to the market.

The broadband market in Taiwan is also one of the more heavily penetrated in the world. With around 90% of households having some form of Internet access, about 55% of these have access to the Internet provided by some form of broadband. DSL provides the dominant platform for the broadband access. Broadband subscriber base was growing at an annual rate of about 20% coming into 2006.

The role of the government in creating a liberalised telecom market in Taiwan should not be underestimated. First there was the strong push for competition to incumbent Chunghwa Telecom and to generally make the market more accessible to new operators. More recently the focus has been on achieving the privatisation of the incumbent. In August 2005, the government concluded its sale of a further 17% stake in Chunghwa Telecom, thereby dropping the government’s shareholding to 48% and formally ending years of struggle to privatise the company. (In Taiwan, a company is deemed to be private if the government owns less than 50%.)

1. HONG KONG
1.1 Key statistics
1.2 Telecommunications market
1.2.1 Overview of Hong Kong’s telecom market
1.2.2 Fixed Telecommunications Network Services (FTNS)
1.2.3 International telecommunications services
1.3 Regulatory environment
1.3.1 Overview
1.3.2 Regulatory authority
1.3.3 Survey of effectiveness of competition
1.3.4 Telecom sector liberalisation
1.3.5 New licence awards
1.3.6 Telecommunication (Amendment) Ordinance 2000
1.3.7 Telecommunications (Amendment) Bill 2001
1.3.8 Regulatory developments
1.3.9 Proposed ‘super regulator’
1.4 Fixed network operators in Hong Kong
1.4.1 Mainland connection
1.4.2 Full liberalisation of FTNS market
1.4.3 Fixed network development
1.4.4 Major players in the market
1.5 Telecommunications infrastructure
1.5.1 Overview
1.5.2 National
1.5.3 International
1.5.4 Satellite networks
1.6 Broadband market
1.6.1 Market overview
1.6.2 Licensing
1.6.3 Asymmetrical Digital Subscriber Line (ADSL)
1.6.4 Cable modem
1.6.5 Wireless broadband
1.6.6 Broadband via satellite
1.6.7 E-Services
1.7 Internet market
1.7.1 Market overview
1.7.2 ISP market
1.7.3 Major ISPs
1.8 Convergence
1.8.1 Overview of broadcasting market
1.8.2 Regulatory environment
1.8.3 Free-To-Air (FTA) broadcasting
1.8.4 Digital TV
1.8.5 Pay TV
1.8.6 Satellite TV
1.8.7 Interactive TV
1.9 Mobile communications
1.9.1 Overview of Hong Kong’s mobile market
1.9.2 Regulatory issues
1.9.3 Personal Communications Services (PCS)
1.9.4 Major mobile operators
1.9.5 Mobile voice services
1.9.6 Mobile data services
1.9.7 Mobile content and applications
2. MACAU
2.1 Key statistics
2.2 Telecommunications market
2.2.1 Overview of Macau’s telecom market
2.3 Regulatory environment
2.3.1 The regulator
2.3.2 Liberalisation
2.4 Fixed network operator in Macau
2.4.1 Compahnia de Telecomunicações de Macau (CTM)
2.5 Telecommunications infrastructure
2.5.1 Domestic and international
2.6 Data market
2.6.1 Data network
2.6.2 Macaupac
2.6.3 ISDN
2.7 Broadband market
2.7.1 ADSL
2.8 Internet market
2.8.1 Market overview
2.9 Mobile communications
2.9.1 Overview of Macau’s mobile market
2.9.2 Push-to-talk (PTT)
2.9.3 Mobile operators
2.10 Broadcasting
2.10.1 Cable TV
2.10.2 Satellite TV
3. TAIWAN
3.1 Key statistics
3.2 Telecommunications market
3.2.1 Overview of Taiwans’s telecom market
3.3 Regulatory environment
3.3.1 Regulatory authorities
3.3.2 The 1996 Telecom Bill
3.3.3 National Communications Commission (NCC) Bill - 2005
3.3.4 Privatisation of Chunghwa Telecom
3.3.5 The deregulation process
3.3.6 Foreign investment
3.3.7 Licence fee and rental charges
3.4 Fixed network operators in Taiwan
3.4.1 Fixed network voice services
3.4.2 Chunghwa Telecom Co Ltd
3.4.3 Eastern Broadband Telecom
3.4.4 New Century InfoComm Tech Co Ltd (Sparq)
3.4.5 Taiwan Fixed Network Telecom
3.5 Telecommunications infrastructure
3.5.1 National
3.5.2 International
3.6 Data market
3.6.1 Data infrastructure
3.6.2 Data services
3.7 Broadband market
3.7.1 Overview
3.7.2 Digital Subscriber Line (DSL)
3.7.3 Cable modems
3.7.4 Wireless broadband
3.7.5 Fibre-to-the-Home (FttH)
3.7.6 Advanced broadband options
3.7.7 Video-on-Demand (VoD)
3.7.8 E-services
3.8 Internet market
3.8.1 Market overview
3.8.2 Public Internet access
3.8.3 Direct Internet access network
3.8.4 TWGate
3.8.5 ISP market
3.9 Convergence
3.9.1 Overview of media convergence
3.9.2 Overview of broadcasting market
3.9.3 Digital TV
3.10 Mobile communications
3.10.1 Overview of Taiwan’s mobile market
3.10.2 Regulatory environment
3.10.3 Mobile Technologies
3.10.4 Major mobile operators
3.10.5 Mobile voice services
3.10.6 Mobile data services
4. GLOSSARY OF ABBREVIATIONS
Exhibit 1 - Licensees
Exhibit 2 - Fixed Telecommunications Network Services (FTNS) licensees - August 2005
Exhibit 3 - International calling card service operators - 2006
Exhibit 4 - The original PCCW deal
Exhibit 5 - Capex commitments of new wireless local FTNS licensees
Exhibit 6 - Overview of TV broadcasting licences
Exhibit 7 - Mobile Virtual Network Operator licensees* - 2006
Exhibit 8 - Major broadcasting organisations
Exhibit 9 - Mobile data licence winners


Table 1 - Country statistics Hong Kong - 2005
Table 2 - Telephone network statistics - 2006
Table 3 - Internet provider statistics - 2006
Table 4 - Internet user statistics -February 2006
Table 5 - Broadband statistics - February 2006
Table 6 - Mobile statistics - February 2006
Table 7 - National telecommunications authorities
Table 8 - Fixed telephone lines vs mobile subscriptions and penetration - 1998 - 2006
Table 9 - No. of telecoms licences by category - April 2006
Table 10 - Fixed-line in service and teledensity - 1994 - 2006
Table 11 - Broadband subscribers - 2000 - 2006
Table 12 - DSL subscriber growth - 1999 - 2006
Table 13 - Cable modem subscriber growth - 2003 - 2006
Table 14 - i-Cable broadband subscribers - 2000 - 2006
Table 15 - Web usage and growth - February 2005
Table 16 - Online trading volumes - 2001 - 2004
Table 17 - Internet user growth - 1996 - 2006
Table 18 - Internet subscribers by access type - March 2006
Table 19 - Internet host computers - 1994 - 2005
Table 20 - Internet traffic volume (PSTN)* - 1997 - 2006
Table 21 -Internet traffic volume (Broadband)* - 2000 - 2006
Table 22 - Registered domain names - April 2006
Table 23 - Average residential web usage - 2004
Table 24 - Pacific Internet subscribers by access type - 2004 - 2005
Table 25 - Broadcasting services - 2005
Table 26 - Pay TV subscribers by platform - 2001 - 2005
Table 27 - Mobile subscriber growth - 1995 - 2006
Table 28 - Mobile service revenue - 1992 - 2006
Table 29 - Mobile subscribers by operator and annual change - December 2005
Table 30 - Operator market share by subscribers - 2003 - 2005
Table 31 - Hong Kong CSL* subscribers and annual change - 1998 - 2005
Table 32 - New World Mobility subscribers and annual change - 1998 - 2005
Table 33 - Hutchison subscribers and annual change - 1998 - 2005
Table 34 - Peoples subscribers and annual change - 1998 - 2005
Table 35 - SmarTone subscribers and annual change - 1998 - 2005
Table 36 - Sunday* subscribers and annual change - 1998 - 2005
Table 37 - Prepaid SIM card growth - 1997 - 2006
Table 38 - Monthly SMS volume - 2002 - 2006
Table 39 - 2.5G subscriber growth - 2002 - 2006
Table 40 - Country statistics Macau - 2005
Table 41 - Telephone network statistics - April 2006
Table 42 - Internet provider statistics - April 2006
Table 43 - Internet user statistics - 2005
Table 44 - Broadband statistics - April 2006
Table 45 - Mobile statistics - April 2006
Table 46 - National telecommunications authorities
Table 47 - Fixed-line growth and teledensity - 1991 - 2006
Table 48 - ADSL subscriber growth - 2001 - 2006
Table 49 -Internet users - 1996 - 2006
Table 50 - Internet host computers - 1994 - 2004
Table 51 - Mobile subscriber growth - 1990 - 2006
Table 52 - Mobile subscribers by operator and annual change - December 2005
Table 53 - Broadcasting statistics - 2005
Table 54 - Country statistics Taiwan - 2005
Table 55 - Telephone network statistics - 2006
Table 56 - Internet provider statistics - 2005
Table 57 - Internet user statistics - 2006
Table 58 - Broadband statistics - March 2006
Table 59 - Mobile statistics - 2006
Table 60 - National telecommunications authorities
Table 61 - Fixed telephone lines v. mobile subscriptions and penetrations - 1997 - 2006
Table 62 - Chunghwa Telecom’s subscriber base - August 2004
Table 63 - Fixed lines in service and teledensity - 1995 - 2006
Table 64 - Broadband subscriber growth and proportion of Internet subscribers - 2000 - 2006
Table 65 - Broadband subscriber and market share by access - December 2005
Table 66 - DSL subscriber growth - 2001 - 2005
Table 67 - Cable modem subscriber growth - 2002 - 2005
Table 68 - GigaMedia broadband subscribers - 1999 - 2005
Table 69 - Internet users - 1996 - 2005
Table 70 - Internet subscribers by access method - March 2006
Table 71 - Internet host computers - 1993 - 2005
Table 72 - Key broadcasting statistics - 2005
Table 73 - Pay TV subscribers by platform - 2002 - 2005
Table 74 - Mobile subscriber growth and penetration - 1995 - 2006
Table 75 - Mobile services revenue - 1992 - 2006
Table 76 - 3G mobile subscriber growth - 2003 - 2006
Table 77 - Mobile subscribers by operator and annual change - December 2005
Table 78 - Operator market share by subscribers - December 2005
Table 79 - Chunghwa Telecom mobile subscribers and annual change - 1998 - 2005
Table 80 - Far EasTone mobile subscribers and annual change - 1998 - 2005
Table 81 - KG Telecom mobile subscribers and annual change - 1998 - 2005
Table 82 - Taiwan Mobile subscribers and annual change - 1998 - 2005
Table 83 - APBW mobile subscribers and annual change - 2003 - 2005
Table 84 - PHS subscriber growth - 2001 - 2006
Table 85 - WAP subscriber growth - 2001 - 2006
Table 86 - GPRS subscriber growth - 2001 - 2006

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