Cellcos banking on 3G for revenue growth

6 Oct 2005

Taiwan’s mobile operators are all predicting a boom in revenues following the full commercial launch of 3G services in the country. Chunghwa Telecom leads the fledgling 3G market with around 210,000 customers signed up to its W-CDMA service so far, already more than double its original year-end target. Chunghwa Telecom opened up its 3G network a month after the country’s number two cellco by subscribers, Far EasTone, launched W-CDMA services, and two months after the third largest, Taiwan Mobile began full service trials of its own UMTS offering. Far EasTone is estimated to have around 40,000 3G subscribers so far and has targeted a modest 50,000 by the end of the year. Taiwan Mobile opened its 3G network up commercially earlier this week after 10,000 subscribers signed up for its trials and hopes to attract 100,000 customers by the end of the year. All three operators say they expect to see average revenue per user (ARPU) increase significantly in the coming months, with Taiwan Mobile claiming that it has already seen a jump of around 12.5% following the rollout of 3G services.