Value of Taiwanese Mobile Broadband Industry to Reach TWD333 Billion (US$11.6 Billion) in 2015

By Gsma, PRNE
Tuesday, July 12, 2011

TAIPEI, Taiwan, July 13, 2011 -


The growth of
HSPA and LTE technology adoption worldwide will see Mobile
Broadband account for 1.8 per cent of Taiwan’s GDP by 2015

The GSMA today announced that Mobile Broadband technologies will
contribute TWD333 billion (US$11.6 billion) to Taiwan’s economy by
2015, an equivalent of 1.8 per cent of GDP. This impact is derived
from direct spend on mobile services (TWD161bn), the growth of the
Mobile Broadband ecosystem (TWD103bn) and the productivity impact
on industry (TWD69bn). The figures come from a new study,
commissioned by the GSMA and conducted by analyst firm Analysys
Mason, on the impact of Mobile Broadband growth in Taiwan and
across the globe.

Highlights from the report show that wireless technologies such
as HSPA, which is forecast to exceed 2.1 billion connections
globally by 2015(i), will generate TWD30.3 billion (US$1.05
billion
) alone for Taiwan’s ICT manufacturers through the rise in
export of Mobile Broadband equipment and devices. Furthermore, the
rise in domestic adoption, with HSPA connections expected to
increase from 9 million today to 19.8 million in 2015 and LTE
adoption to exceed 2.5 million by 2015(ii), will lead to a 25 per
cent annual increase in spending on Taiwanese-manufactured Mobile
Broadband technology.

Taiwan’s ICT industry will also benefit from the huge increase
in LTE adoption across the globe. With more than 300 million
connections worldwide(iii) expected by 2015, revenues generated by
LTE are expected to quickly surpass those of Taiwan’s WiMAX
technology sector. According to Analysys Mason, HSPA and LTE will
generate TWD27.3 billion (US$934 million) for Taiwan’s economy by
2015, compared to TWD3 billion (US$100 million) for WiMAX.

Jaikishan Rajaraman, Senior Director, Asia Pacific, GSMA
commented: “HSPA and LTE are now firmly established as the dominant
Mobile Broadband technologies worldwide, and Taiwan must seize this
opportunity to leverage its extensive telecoms expertise to focus
on the development and export of HSPA and LTE equipment and devices
globally.”

Rajaraman continued: “It is essential that the Taiwanese
government acts quickly to support manufacturers and allocate
spectrum for LTE. This includes releasing digital dividend spectrum
in the 700MHz band in line with the rest of Asia, enabling Taiwan
to benefit from economies of scale and lower cost equipment and
devices, as well as changing the license conditions for 2.6GHz
spectrum, which is restricted to WiMAX services, to allow the rapid
deployment of LTE.”

The growth of Mobile Broadband in Taiwan will largely be driven
by a rise in smartphone penetration. 3G handsets are experiencing
exponential growth as operators have rolled out extensive networks
and the device ecosystem has developed. In Q1 2011, 44% of total
handset sales were smartphones, an annual increase of 150%, and it
is likely that increases in wireless broadband penetration will be
driven by consumers starting to use smartphone features.
Additionally, shipments of app-enabled smartphones and tablets
worldwide are expected to reach 377 million in 2011 and 462 million
in 2012, overtaking traditional PCs.

However, it is not only manufacturers that will benefit from the
uptake of HSPA and LTE. By 2015 Mobile Broadband will generate an
increase of TWD42.8 billion (US$1.5 billion) in the consumer and
retail sectors through more vibrant online commerce, entertainment
and advertising, TWD17.4 billion (US$605 million) in social and
government services with mHealth being a key driver, and TWD12.6
billion
(US$438 million) across the broader corporate segment.

Rajaraman concluded: “The growth of HSPA and LTE Mobile
Broadband offers huge benefits to Taiwan. It will transform how
people access information and services, drive new efficiencies
across a number of industry sectors, and generate significant
returns for its ICT industry.”

To view the report, please follow this link: href="www.gsmamobilebroadband.com/upload/resources/files/Impact_of_Wireless_Broadband_Penetration_in_Taiwan_ENG.pdf">
The Impact of Mobile Broadband on Taiwan

About the GSMA

The GSMA represents the interests of mobile operators
worldwide. Spanning 219 countries, the GSMA unites nearly 800
of the world’s mobile operators, as well as more than 200 companies
in the broader mobile ecosystem, including handset makers, software
companies, equipment providers, Internet companies, and media and
entertainment organisations. The GSMA also produces
industry-leading events such as the Mobile World Congress and
Mobile Asia Congress.

For more information, please visit Mobile World Live, the online
portal for the mobile communications industry, at href="www.mobileworldlive.com/">www.mobileworldlive.com
or the GSMA corporate website at href="www.gsmworld.com/">www.gsmworld.com.

(i)  Source: Wireless Intelligence. Q4 2015
(ii)  Source: Wireless Intelligence. Q2 2011 & Q4
2015
(iii)  Source: Wireless Intelligence. Q4 2015

Catherine Cheng on behalf of the GSMA, +886-2-2722-5779 Ext. 118, or +886-922-417-821, ccheng at webershandwick.com

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