Taiwan 3.5G user base may grow to 1 million in 2009, says Vibo Telecom

The total number of HSDPA subscribers in Taiwan is expected to reach 300,000 at the end of 2008 and may be increasing to between 600,000 and one million in 2009, according to Vibo Telecom president Feng-hsiung Chang.

The rapid increase in 3.5G user base is mainly due to fast growing demand for mobile access to the Internet on, handsets, netbook and notebook PCs, and MIDs (Mobile Internet Devices), Chang indicated.

As the mainstream download speed of 3.5G is being upgraded to 7.2Mbps or 14.4Mbps, WiMAX service operators, which are scheduled to begin rolling out in Taiwan in 2009, may have to start a price war to compete with 3.5G operators, Chang noted.

But for other kinds of mobile value-added services, online games and music for example, it is not easy to increase subscriber volumes because the small market in Taiwan renders it difficult to reach an economy scale. A small user base make it economically difficult to secure premium content, while relatively poor content, in turn, is unable to drive uptake, Chang explained.