NCC warns 4G price war could impact Taiwan’s 5G development

23 Apr 2018

Taiwan’s National Communications Commission (NCC) has suggested that, should the price war between the nation’s mobile network operators in the 4G arena continue, it could impact on the prospects for 5G in the nation. The Taipei Times reports that the NCC’s warning comes after mobile market leader Chunghwa Telecom launched a new 4G tariff earlier this month offering government workers, teachers, school staff and military personnel unlimited mobile data and unlimited phone calls to on-net numbers for TWD499 (USD16.9) per month. In the wake of this, its rivals Taiwan Mobile, Far EasTone and Asia Pacific Telecom all launched competing plans.

Explaining the possible impact of a price war on the development of 5G services in Taiwan, NCC spokesperson Wong Po-tsung said: ‘If telecoms simply want to boost their market shares and revenue by luring subscribers from competitors, rather than with innovative business models, it would not be positive for the development of 5G in the nation … What they are doing does not help to make the pie bigger. They are not benefiting from innovative business models that could sustain them through the maintenance and operation of 4G services, the auctioning of the 5G service spectrum and finally commercial operation of 5G … That would hamper sustainable development of the nation’s telecommunications industry.’