Contents
From the Editor
1
A New Trend to Surf the Net: 3G/ 3.5G/ Wi-Fi Network Card Plus Notebook
2
2009 Household Broadband Internet Usage in Taiwan
7
2009 Market Overview of Fixed Broadband and Mobile Communications in Taiwan
11
A Gateway to Taiwan: The Intelligent Taoyuan Aerotropolis
15
Intelligent Homes & Urban Aesthetics Transform Kaohsiung City into a Smart and Beautiful Metropolis
20
Paradise for Mobile Workers : Intelligent Taipei
24
2009 Major Development in Taiwan’s Broadband Mobile Telecommunications
28
As broadband Internet gets popular and mobilized while Internet application services are diversifying, advanced countries don’t spare any single efforts to take broadband infrastructure and application services into consideration of their major national policies. With efforts from the government and industry in Taiwan, our performance remains outstanding in relevant broadband, mobile and wireless indicators. This issue of Mobile Internet in Taiwan presents the current state and level of broadband infrastructure and individual Internet penetration in Taiwan, in addition to introducing three exciting case studies that best depict how a city could raise its competitiveness using ICT in 2009. In regard to the fixed broadband environment, the household fiber-optic penetration in Taiwan remains 4th globally based on the data released by The Fiber to the Home Council (the FTTH Council). According to the survey conducted by FIND (Foreseeing Innovative New Digiservices Center) of the III (Institute for Information Industry), the percentage of optic fiber deployment into new buildings nationwide has reached 25%, with 74% household broadband penetration in the third quarter of 2009 where the proportion of fiber-optic household subscribers rises up to 31%. High-speed fiber-optic Internet has become the main Internet connection method that propels the diversified development of the broadband applications in Taiwan, leveraging people’s willingness to conduct various Internet activities, from information browsing, social networking to audio video and so on. Besides, Taiwan possesses abundant wireless Internet resources such as 3.5G (High Speed Downlink Packet Access, HSDPA), WiMAX, and Wi-Fi that people could easily surf the Internet through 3.5G network cards with notebooks/ netbooks in public spaces such as coffee shops, schools, and bus stations. As smart phones are getting common, the mobile communication operators in Taiwan sequentially launch mobile software stores and valueadded service platforms. Downloading music, reading e-books, news and life information through cell phones have become people’s common activities. Aside from 3.5G technology, the next generation wireless Internet WiMAX has spread out and become available in each city and county of Taiwan, resulting in the highest density around the world. As the WiMAX services launched by telecoms like Tatung InfoComm, Global Mobile, and Far EasTone become commercialized, people can pay less to enjoy the high-speed Internet service. The 2009 e-Readiness Rankings report released by the Economist Intelligence Unit (EIU) especially praises Taiwan’s Wireless Broadband Infrastructure in Major Cities Project for using ICT infrastructure spending as a form of economic stimulus. This series of Mobile Internet in Taiwan will introduce three cities as case studies to readers, which are Taipei City, Taoyuan County, and Kaohsiung City, respectively. Taipei City, the finest city in Taiwan, will initiate the UI-Taipei 2010 Project combining the concepts of ubiquity and intelligence to launch a series of intelligent life application services in 2010, after being recognized as the largest public wireless Internet city in the world by JiWire. Taoyuan County, being selected among the Smart21 announced by the Intelligent Community Forum (ICF) in 2009, initiates the Intelligent Taoyuan Aerotropolis Project as the gateway to Taiwan, stimulating the commerce and trade development as well as application services such as intelligent transportation, healthcare and housing through the overall planning of intelligent industrial parks, cities and towns. Kaohsiung City, on the other hand, incorporates fiberoptic broadband Internet into the city’s future design blueprint to offer intelligent application services such as home monitoring and disaster prevention. All these successful and innovative urban development projects are actually worth of mutual observation and learning for cities around the globe.
Mobile Internet in Taiwan
From the Editor
1
A New Trend to Surf the Net: 3G/ 3.5G/ Wi-Fi Network Card Plus Notebook The survey on “The current state and level of demand on wireless broadband by individuals in Taiwan” was done by phone interviews between Feb 2 and 19, 2009. The effective sample size (the number of surveys with all required questions answered) is 4,041, with the sampling error between ±1.54% under the confidence level of 95%. Within the 4,041 samples, the effective sample sizes for 3G/3.5G mobile Internet and Wi-Fi Internet are 365 and 1,055, respectively.
Aside from Mobile Phone, 3G/3.5G/Wi-Fi Network Card Plus Laptop People’s Top Choice for Wireless Network Access The survey by III-FIND shows that 3G/3.5G mobile Internet subscribers account for 6.6% of the total population in Taiwan while Wi-Fi subscribers make up 25.1% of the population. Although currently Wi-Fi network is more popular than 3G/3.5G mobile Internet, an increase of 3G/3.5G mobile Internet subscribers may be anticipated as a result of vigorous promotion by mobile operators. Looking at the wireless devices used by the general public, mobile phones (72.4%) are the most popular devices for 3G/3.5G network services, followed by 3G network card plus laptop (31.2%) (Figure 1). As regards WiFi connection, Wi-Fi network card plus laptop (82.2%) dominates while Wi-Fi network card plus desktop (22.7%) stands second (Figure 2). The aforementioned data shows that network card plus laptop seems the essential devices for wireless connection.
Mobile Internet in Taiwan
Figure 1 3G/ 3.5G Mobile Internet Surfing Devices (%) 0
20
40
80
60
Mobile Phone
72.4
3g Network Card + Laptop 0
20
Mobile Phone 3.5g Network Card + Laptop
40
80
60 72.4
9.2
3g Network Card + Laptop PDA
31.2
7.0
3.5g Network Card + Laptop Smartphone
9.2 6.0
PDA Don’t Know/ Refuse to Answer
7.0
0.0
6.0 0
0.0
20
40
60
80
Figure 2 Wi-Fi Wi-Fi Network CardInternet + NotebookSurfing Devices (%) Wi-Fi Network Card + Desktop 0
20
Wi-Fi Network Card + Notebook Wi-Fi-embedded Phone
4.1
Wi-Fi-embedded Phone Wi-Fi-embedded Smartphone
5.6 3.1
Wi-Fi-embedded PDA Portable Game Machine
0.6
40
60
80
100 82.2
22.7
4.1
0.6
Portable Game Machine
Common Areas
Source: III-FIND (2009/3) Public Places
Workplaces Public Places
22.7
3.1
Wi-Fi-embedded Smartphone
Homes
82.2
5.6
Wi-Fi Network Card + Desktop Wi-Fi-embedded PDA
100
63.1 35.7 26.1
While In Transit/ Waiting Schools Homes of Friends or Relatives Common Areas
63.1
20.3
Hosptials While In Transit/ Waiting
Private Learning Centers
38.5
13.5
1.5 0.4 0.2
Mobile Internet in Taiwan
Smartphone Source: III-FIND (2009/3) Don’t Know/ Refuse to Answer
31.2
20.3
38.5
Smartphone
6.0
Don’t Know/ Refuse to Answer
0.0
Public Places the0 Most Popular Location for Accessing Wireless 100 Internet 20 40 60 80 82.2
Wi-Fi Network Card + Notebook
82.2 Most users connect to the mobile Internet through 3G/3.5G technology in public places (63.1%). Homes (35.7%) and workplaces (26.1%) also appeal to some users. 22.7 Wi-Fi Network Card + Desktop Among users who access the mobile Internet in public, common areas such as streets and stores are preferred by most users. As shown 5.6 3, it is worth noting that more than 2 in 10 users (20.3%) access the mobile Wi-Fi-embedded Phone in Figure Internet while in transit or when waiting. Therefore, if the ease of mobile phone use while in transit and variety 4.1 are put into consideration, increased frequency of use and penetration rate of Wi-Fi-embedded PDA waiting of Internet usage during the general public would be made possible. 3.1 Wi-Fi-embedded Smartphone The most popular location to access Wi-Fi network is public places (51.9%). Homes (50.3%) and workplaces (20.6%) come as the second and the third place, respectively. Among all the public places, restaurants/coffee 0.6 Portable Game Machine shops (26.2%), schools (16.5%) and subway/ bus stations (2.6%) are the top three locations where Wi-Fi network is accessed (Figure 4).
Figure 3 Places Where 3G/ 3.5G Mobile Internet Users Accessing the Internet (%) Common Areas Public Places
Workplaces
13.5
Homes of Friends or Relatives
26.1 2.6
38.5
20.3
Schools
35.7
Homes
Don’t Know/ Refuse to Answer
While In Transit/ Waiting
63.1
1.5
Hosptials
0.4
Private Learning Centers
0.2
Mountain Areas
0.1 2.6
Don’t Know/ Refuse to Answer
N=3G/ 3.5G Mobile Internet Users
0
10
20
30
40
Figure 4 Places Where Wi-Fi Internet Users Accessing the Internet (%) Public Places
51.9
Mobile Internet in Taiwan
Subway/ Bus Stations Homes of Friends or Relatives Airports
50.3
Homes Workplaces Don’t Know/ Refuse To Answer
Restaurants/ Coffee Shops Schools
20.6 0.5
2.6 2.5 2.5 2.3 1.9 1.4 1.1 0.7 0.1
Hotels/ Hostels Tourists Spot
Libraries Department Stores/ Supermarkets Hospitals
Museums Other Public Areas
Source: III-FIND (2009/3)
0
5
26.2
16.5
4.3
N=Wi-Fi Internet Users
10
15
20
25
30
Information Browsing (e.g. News, Traffic)
43.0
2.6
Don’t Know/ Refuse to Answer 0
N=3G/ 3.5G Mobile Internet Users
10
20
30
Restaurants/ Coffee Shops
40
26.2
Schools 16.5 Information-related Services the Mainstream Internet Activities Public Places 51.9 Subway/ Bus Stations 2.6 Homes of Friends or Relatives
2.5
50.3 AmongHomes users accessing the 3G/3.5G mobile Internet, theAirports most frequently adopted activity is information 2.5 browsing (43.0%), searching (37.0%), and sending/receiving e-mails (14.5%), as indicated in Figure 5. As Hotels/ Hostels 2.3 Workplaces 20.6 1.9 for Wi-Fi Internet users, information browsing (50.9%) Tourists standsSpot first, followed by searching (44.1%), online 1.4 Don’t Know/ (16.5%) entertainment and sending/receiving e-mails (16.2%),Libraries as illustrated in Figure 6. 0.5 1.1 Department Stores/ Supermarkets Refuse To Answer The aforementioned survey results also reveal what matters for mobile network subscribers. Across various 0.7 Hospitals mobile Internet activities, information collecting, whether searching is the most popular one, and 0.1 Museums or browsing, Internet Users 4.3 Public Areas e-mailing comes next. Entertaining services are alsoOther popular usages, however, they are leftN=Wi-Fi far behind other 5 10 15 20 25 30 popular activities. And the least adopted activity is found to be online0 transaction.
Figure 5 Major Internet Activities of 3G/ 3.5G Mobile Internet Users (%) Information Browsing (e.g. News, Traffic)
43.0
Searching
37.0
Sending/ Receiving Emails
14.5
Data Upload
11.5
Online Entertainment (e.g. Online Game)
9.0
Ringtones Download
7.1
Mobile Phone Games Download
5.2
Music Download
5.0
Online Chat Online Shopping
2.8
GPS
2.7
MMS
1.9
Financial Transaction
1.9
Data Download
0.9
Live Game Broadcast
0.6
Ticket Services Reservation
0.2
Mobile Internet in Taiwan
4.5
Source: III-FIND (2009/3)
Information Browsing (e.g. News, Traffic)
50.9
Live Game Broadcast
0.6
Ticket Services Reservation
0.2
Figure 6 Major Internet Activities of Wi-Fi Internet Users (%) Information Browsing (e.g. News, Traffic)
50.9
Searching
44.1
Online Entertainment (e.g. Online Game)
16.5
Sending/ Receiving Emails
16.2
Online Chat
12.4
Data Upload
6.0
Online Shopping
5.1
Financial Transaction
2.3
Music Download
1.9
Work Related
1.8
Data Download
1.0
Online Video & Movie
0.9
Job Hunting
0.3
Distance Learning
0.3
Source: III-FIND (2009/3)
Conclusion Mobile Internet in Taiwan
Yet it is true that Wi-Fi technology has to overcome its weakness of low signal coverage and relatively low mobility, it is also hard to deny that Wi-Fi provides better bandwidth when compared with mobile network. Furthermore, once connected with laptops, users will be able to engage in various advanced activities. Therefore, for those considering using Wi-Fi network, “Wi-Fi card plus laptop” becomes the top choice. The survey results also suggest that regarding Wi-Fi wireless connection, light equipments that are portable or with communication function are preferred by the general users. Estimatedone Population in 2009 Through vigorous Internet promotion operators, 3G/3.5G networkin card has become of the most Category Activities by mobilePercentage in 2008 (%) Percentage 2009 (%) (Unit: Thousand) popular devices for mobile network. Along with the upgraded features of smart phones and netbooks, an increase is observedInformation in numbers of mobile network wireless card Browsing 83.3 users applying “smart 91.2 phones” and “3.5G12,641 plus laptop” while compared with last year. This phenomenon suggests these types of mobile web access will Information Data Download/ Upload 46.9 60.7 8,411 continue driving the mobile Internet penetration. e-Government Services
8.0
14.7
2,041
Sending/ Receiving E-mails
67.2
73.5
10,186
Sending Instant Messages
47.5
58.3
8,073
3
2009 Household Broadband Internet Usage in Taiwan III-FIND conducts this survey on individual’s broadband Internet usage behaviors at home through telephone interview between August 10 and 23, 2009. With an effective sample size of 4,057, the survey results find that the household Internet penetration1 in Taiwan is 78.7%. Compared with that of 2008, the number slightly raises by 2.6%, representing 6.09 million households. Meanwhile, the household broadband penetration2 in Taiwan reaches 73.9%, which shows a raise by 2.1% compared with the previous year.
Internet Usage of Home Users in Recent One Month
Mobile Internet in Taiwan
The most engaged Internet activity among users who used to access the Internet at home in recent one month falls in the category of information, followed by communication. “Information browsing” has the highest percentage (91.2%) among activities in the information category while in the communication category “sending/ receiving e-mails” (73.5%) and “sending instant messages” come as the most frequently adopted activities where the percentage of each exceeds 50% of the total population. “Playing online games” is the major activity within the category of entertainment and reaches 40% of the total population. In the category of financial transaction, the user percentage is about 20%, with “online shopping” (23.7%) as the most engaged activity (Table 1).
Table 1 Internet Activities by Users Accessing at Home in Recent One Month Category
Internet Activities
Information
Percentage in 2009 (%)
Information Browsing
83.3
91.2
12,641
Data Download/ Upload
46.9
60.7
8,411
8.0
14.7
2,041
Sending/ Receiving E-mails
67.2
73.5
10,186
Sending Instant Messages
47.5
58.3
8,073
Online Social Networks
21.0
35.4
4,903
Internet Phones4
14.9
17.4
2,407
Online Chat
12.4
13.5
1,869
Online Games
33.7
40.6
5,632
Online Videos
21.8
37.6
5,208
Online Shopping6
16.7
23.7
3,285
Bill Payment
10.0
16.9
2,346
Online Bid
10.4
15.4
2,134
Online Investment
10.2
12.8
1,767
4.7
3.4
476
e-Government Services
3
Communication
5
Entertainment
Financial Transaction
7
Paid Online Learning8
Learning
Estimated Population in 2009 (Unit: Thousand)
Percentage in 2008 (%)
Source: III-FIND (2009/10) 0
20
40
60
80
100
Usage Behaviors of Internet Phones and Blogs 12.7
2009
Voice Internet Phone Internet telephony is subdivided 8.8 into voice Internet phones, video Internet phones and 070 Internet phones. 2008 Among users who used to log online and use Internet phones at home in recent one month, 12.7% of them 6.6 6.6% of them use video Internet phones, and 0.9% Unit: %use 070 Internet phone. use voice Internet phones while Video Internet Phone
Mobile Internet in Taiwan
6.1
070 Internet Phone
Compared with the previous year, an increase of the overall use of Internet phones is observed. Looking at the lately introduced 070 Internet phones, a trend in increased usage will be expected given that the percentage reaches 82.6 population of 120,000 0.9% with an estimated user 85.1 7). within less than one year (Figure
0.9
I Don’t Have It
Text Blog Video Blog
22.5
8.8 12.2
20.3
2009 2008 Unit: %
Financial Transaction Communication
Sending Instant Messages
47.5
58.3
8,073
Online Social Bid7 Networks3 Online
10.4 21.0
15.4 35.4
2,134 4,903
Online InternetInvestment Phones4
10.2 14.9
12.8 17.4
1,767 2,407
4.7 12.4
3.4 13.5
476 1,869
8
Learning
Paid Online Online Chat5Learning
Online Gamesby Users Accessing at 33.7 40.6 Figure 7 Internet Phone Usage Home in Recent One Month Entertainment Online 0 Videos
20
40 21.8
6
Online Shopping 12.7 Voice Internet Phone Bill Payment 8.8 Financial Transaction Online Bid7 6.6 Online Investment Video Internet Phone 6.1 Learning Paid Online Learning8 070 Internet Phone
60
5,632
37.680
100
5,208
16.7
23.7
10.0
16.9
10.4
15.4
2008
2,134
10.2
12.8
Unit: %
1,767
4.7
3.4
3,285
2009
2,346
476
0.9 0
20
40
60
80
100 82.6 2009 85.1 2008
12.7
I Don’t Have It Voice Internet Phone
8.8
Source: III-FIND (2009/10) Video Internet Phone
6.6
Unit: %
According to the survey results, in Taiwan 35.4% of the population have personal social networks where text 6.1 22.5 2009 blogs make up Text 22.5% of these owners, 20.3% of them have video blogs with a feature of video sharing, 3.5% of Blog 8.8 0.9 them have microblogs, and 9.1% of them own social networking sites. It is estimated that in Taiwan about 4.9 2008 070 Internet Phone million peopleVideo have their personal social 20.3 networks (Figure 8). Compared with the previous year, the penetration Blog Unit: % 12.2 rate of social networks in 2009 demonstrates a dramatic growth of 14.4%. According to our latest survey, nearly 82.6 1.74 millionI Don’t people in recent one month, which Havein It Taiwan 3.5 use social networking sites and microblogs at home 85.1 Microblog is very impressive over such a limited time span. 9.1 FigureSocial 8 Online Social Networking Site Network Usage by Users Accessing at Home in Recent One Month
0.2 0.2
Video Blog I Forgot/ I Don’t Know Microblog
0
64.4
78.8
20.3
20
40
60
2008
80
100
9.1 64.4
78.8
Leased Line
4.85
20
40
3.60
No. of Fixed Broadband Subscriptions Unit: Million
2009
Unit: %
I Don’t Have It
0.2 I Forgot/ I Don’tFTTx Know 0.2 5.00 Cable Modem 0 Source: III-FIND (2009/10) xDSL 4.00
12.2
3.5
Social Networking Site
6.00
22.5
8.8
2.91
4.13
60
4.43
4.64
80
4.93
100
4.87
4.89
Mobile Internet in Taiwan
Text Blog I Don’t Have It
Conclusion As the survey results reveal, the household Internet penetration in Taiwan raises by 2.6%, which approximates the household broadband penetration (2.1%). This suggests that the added household subscribers mainly choose to use broadband Internet. With the high broadband Internet penetration, the trend of users conducting Internet activities at home is on a rise. Fast growing activities include “online video”, “online social networks”, “data upload/download” and “sending instant messages”. Except for “sending instant messages”, these Internet activities require large bandwidth, suggesting increased demand of high speed and large bandwidth Internet. In addition, the top three fast-growing activities highlight user behaviors in information sharing. This phenomenon also implies the growing importance of the Internet as a media for people to stay connected. “070 Internet phones” and “microblogs” are both new services introduced in 2009, and “social networking sites” is also a recent thing. Therefore, it is reasonable to see relatively low penetration rates of these services. However, the survey results also show that these services already accumulate quite a lot of pioneer users. When connected to mobile Internet through cell phones, microblogs and social networking sites become superior in immediateness while 070 Internet phones have the advantage of low cost. Thus, it is appropriate to expect the continuous growth in new and emerging communication services. Besides, the greatest growth in broadband Internet usage will be seen in communication services though at this time searching and information browsing are the main activities conducted by users at home.
Notes:
Mobile Internet in Taiwan 10
1. Household Internet Penetration = Households with Internet Connection/ All households in Taiwan. 2. Household Broadband Penetration = Households with Broadband Internet Access/ All households in Taiwan. Broadband Internet access refers to ADSL, Cable Modem, Leased Line, ISDN, Mobile Network at home, etc. 3. Online social networks refer to text blogs, video blogs, microblogs and social networking sites. 4. Internet phones refer to voice Internet phones, video Internet phones and 070 Internet phone. 5. Online chat refers to logging on certain websites or chatting on the Bulletin Board System (BBS). 6. Online shopping refers to purchases of products or services with the tag price made by sellers. 7. Online bid refers to selling objects or services online or any bidding behaviors. 8. Paid online learning refers to online learning through downloading paid software or materials.
2009 Market Overview of Fixed Broadband and Mobile Communications in Taiwan III-FIND undertakes regular surveys on Internet users in Taiwan and monitors the growth of mobile communications and mobile Internet subscribers through compiling related statistical data, observing the changes in penetration rates for different types of communications services over the past few years in Taiwan.
As of September 2009, the number of fixed broadband subscribers in Taiwan reaches 4.89 million, representing an increase of 20,000 subscribers compared to the second quarter of 2009 (Figure 9). The number of xDSL subscribers decreases steadily due to the growth of fiber-optic Internet subscribers (FTTx), from 2.83 million in the previous quarter down to 2.64 million, which accounts for 54% of all fixed broadband subscribers. On the other hand, FTTx and Cable Modem post quarterly increases of 170,000 and 40,000 subscribers, respectively. A rapid growth has been seen in the number of FTTx subscribers during the last four years, reaching at 1.52 million currently and accounting for 31% of all fixed broadband subscribers. FTTx has become the main technique driving the broadband upgrade in Taiwan. As for cable modem, there are 0.73 million subscribers currently, representing 15% of the total fixed broadband subscribers.
Mobile Internet in Taiwan
Fastest Growth Shown in Fiber-Optic Internet Access: Account for 31% of All Fixed Broadband Subscribers
11
I Don’t Have It 0
20
40
60
0.2 0.2
I Forgot/ I Don’t Know 0
80
20
78.8
100
40
60
80
100
Figure 9 Growth of Fixed Broadband Subscriptions in Taiwan 6.00
Leased Line FTTx
5.00
Cable Modem
Leased Line
xDSL
4.00
3.00
4.85 6.00
5.00 No. of Fixed Broadband Subscriptions Unit: Million 4.00
4.13
FTTx 3.60 Cable Modem
4.13
2.91 xDSL
4.87
4.89
4.43
4.93
2008/12
2009/03
4.64
2.14 2.00
0.25
0.04 1999/12
2000/12
Source: III-FIND (2009/11)
1.18 1.00 2001/12 2002/12 0.00
2003/12 0.04
2004/12 0.25
2005/12
2006/12
2007/12
2008/12
2009/03
2009/06
2009/09
Users in Need for High Bandwidth Prefer FTTx; Others Prefer xDSL as the Mainstream Internet Access Technology 1999/12
2000/12
2001/12
2002/12
2003/12
2004/12
2005/12
2006/12
2007/12
Mobile Internet in Taiwan
Figure 10 shows the breakdown of xDSL, Figure 10 2009 Q3 Percentage Breakdown of Different Cable Modem and FTTx≧8M in three different Broadband Access 19.5% 8.7% 71.8% Technologies in Different Speed Categories connection speed categories. Users having 5.2% needs for download bandwidth greater than 8M ≧8M 19.5% 23.7% 8.7% 71.8% ≧2M ~ ＜8M prefer using FTTx to surf the Internet, accounting71.1% for 71.8% in total. As for users with download 5.2% 1.6% bandwidth between 2M (included) and 8M, ≧2M ~ ＜8M 71.1% 23.7% 85.9% 12.5% and below 2M mainly use ＜2M xDSL to access the Internet. Among people in the speed category 1.6% Cable Modem FTTx between 2M (included) and 8M, 71.1% of them xDSL ＜2M 85.9% 12.5% use xDSL while 23.7% of them choose Cable Modem to access the net. As for users with xDSL Cable Modem FTTx download bandwidth less than 2M, an even Source: III-FIND (2009/11) higher share (85.9%) of people use xDSL. 2G 3G PHS
Total Mobile Communications Subscribers
Quarterly Growth Rate of 3G Subscribers 30,000
4
2.91
1.18
12
4.85
3.60
No. of Fixed Broadband Subscriptions
3.00
1.00
0.00
4.43
2.14 Unit: Million
2.00
4.93
4.64
Unit: Thousand
2G
3G
20%
20
≧8M The Mobile Phone Penetration Rate in Taiwan has Risen to 115.2% 19.5%
8.7%
71.8%
≧2M ~ ＜8M
71.1%
5.2%
23.7%
According to data compiled by Taiwan’s National Communications Commission (Figure 11), the number of 1.6% mobile subscriptions in Taiwan reached 26.61 million as of the third quarter in 2009, representing a penetration 85.9% 12.5%reaching at 14.84 million and rate of 115.2%. The number＜2M of 3G subscribers grows steadily in recent years, accounting for 55.8% of all mobile subscriptions in Taiwan, representing a quarterly growth rate of 9.1%. With xDSL and PHS Cable Modem FTTx the growth of 3G subscriptions, the numbers of 2G subscribers continuously decrease each quarter, standing at 10.37 million and 1.39 million, respectively, as of the third quarter of 2009. Figure 11 Growth of Mobile Communications Subscribers in Taiwan 2G
3G
PHS
Total Mobile Communications Subscribers
Quarterly Growth Rate of 3G Subscribers
25,000
Unit: Thousand
20%
24,287
16.5%
20,000
26,606
26,168
25,672
25,413
24,676
16%
12.8%
12%
15,907
12,661 11,292
10,000
10.0%
11.4%
14,211
15,000
12,423 11,817
13,606 9.5%
14,844 9.1%
11,150
10,370
8,978 6,915
8%
4%
5,000 1,465
1,486
1,459
1,432
1,412
1,392
2007/Q4
2008/Q2
2008/Q4
2009/Q1
2009/Q2
2009/Q3
0%
0
Source: III-FIND (2009/11)
Mobile Internet in Taiwan
30,000
13 WAP
GPRS
PHS
Mobile Users with Internet Access Capability
3G
20,000
12.8%
12%
15,907
10.0%
11.4%
14,211
15,000
13,606 9.5%
12,661
14,844
Two-Thirds of Mobile Phone Users Now Have Mobile Internet Access Capability, with 3G Being the Main Access Technology 12,423 11,817
11,292
10,000
9.1%
11,150
10,370
8,978
8%
6,915
4% As illustrated in Figure 12, the number of mobile users in Taiwan who activate the Internet access continuously 5,000 grows in the third quarter of 2009, reaching at 17.6 million and representing an increase of 5.9% compared to 1,465 Mobile phone 1,486 users having 1,459 1,432 1,412 the previous quarter. Internet access capability now account for 66.1% 1,392 of all mobile subscribers. Looking at how different mobile Internet access technologies are adopted, there are 13.460% million 0 subscribers using of total), with2008/Q4 a quarterly increase (General Packet 2007/Q43G (76.5% 2008/Q2 2009/Q1 of 8%. GPRS 2009/Q2 2009/Q3Radio Service) subscribers remain the same as last quarter (15.6% of total) while PHS subscribers account for 7.9% of the total mobile Internet population. Nowadays people hardly use WAP (Wireless Application Protocol) as the sole way to access the Internet. 3G cell phones are by far the most commonly used device to access mobile Internet.
Figure 12 Growth of Mobile Internet Users in Taiwan
20,000
WAP
GPRS
PHS
Mobile Users with Internet Access Capability
3G
Percentage of Mobile Users with Internet Capability
Unit: Thousand
16,000
54.2% 48.8%
12,000
13,375 11,856
10,785
16,614
16,172
15,305
66.1%
63.5%
63.0%
60.2%
80%
11,849
12,459
17,595
13,457
40%
8,547
8,000
Mobile Internet in Taiwan 14
6,530 3,799
4,000
3,320 1,480
0
20%
3,055 1,486
2,885 1,459
1,432
2,738
2,742 1,412
1,392
48
2007/Q4
Source: III-FIND (2009/11)
Month
60%
Key Events
2008/Q2
2008/Q4
2009/Q1
2009/Q2
2009/Q3
0%
A Gateway to Taiwan: The Intelligent Taoyuan Aerotropolis Located in Taoyuan County, Taoyuan International Airport is Taiwan’s largest international-standard airport. It is the door through which people in Taiwan are connected to the world. Accordingly, foreigners gain their first impression about the island country upon arrival at the airport. The Taoyuan airport was one of the up-todate international airports in Asia when it was first open for business. At that time, many countries, including Singapore and Thailand, even sent delegations to the airport for a tour of emulation and inspection. In recent years cities throughout Southeast Asia have one after another started introducing airports with new equipment and advanced hardware and software. For example, under a snappy slogan of “ubiquitous airport,” South Korea’s Incheon airport has won wide recognition as an intelligent airport in various performance appraisals and reviews. Competition from neighboring cities adds powerful impetus to the continued development of Taoyuan County. With an ideal geographic location, Taoyuan serves as a central pivot linking Northeast Asian and Southeast Asian economic circles. Besides, Taoyuan has achieved an outstanding performance in infrastructure. According to the latest survey results released by III-FIND, about 15.6% of the county’s new buildings have access to fiber
Figure 13 Map Indicating Taoyuan’s Pivotal Position in East Asian Economy Source: Taoyuan Aerotropolis Website
Mobile Internet in Taiwan
optics. While the household broadband penetration rate has reached 96%, close to 85% of the families there have been able to get broadband Internet services. Under these circumstances, it definitely won’t want to be absent in a great struggle for acquiring the status of an economic and trade hub in its capacity as an aviation city in the Asia-Pacific region. (Figure 13)
15
Given the excellent condition in its own right, Taoyuan County has been actively promoting an intelligent Taoyuan aerotropolis project in recent years, a practice that has already obtained strong support from the central government. The International Air Park Development Act was promulgated in January 2009. Six months later, the Legislative Yuan, after a third reading, passed another bill calling for the establishment of a state-owned company to operate the airport park. According to the legislation, the Taoyuan county government and the central government will work together to fast track the implementation of the smart gateway program.
M-Taoyuan Project Provides Basic Groundwork for Development of Intelligent Taoyuan Aerotropolis
Mobile Internet in Taiwan 16
Never does Taoyuan County lag behind in information and communication technology infrastructure. Despite its limited resources as a local government, the county has been making all-out efforts to solicit financial aid from the central government. From 2006 to 2009, for example, an M-Taiwan broadband network establishment project laid the groundwork in broadband infrastructure for the construction of Taoyuan as an intelligent county. Under the project, a broadband network extending 664 kilometers has been completed and a total of 405 kilometers of broadband cables successfully laid in cooperation with eight telecommunications operators. In the wireless network, the county government has been actively collaborating with the Chunghwa Telecom and other telecom players to expand the WiMAX coverage in that passengers upon landing at the Taoyuan airport are immediately able to use Internet services without any limitations. The launch of a knowledge-based Taoyuan aerotropolis scheme by the Taoyuan county government in recent years has helped the county to be selected twice, in 2009 and 2010, among the Smart21 announced by the Intelligent Community Forum (ICF). With substantial assistance from the central government, the aerotropolis program is not just something on the drawing board but one that is being realized, consisting of eight special zones that include a free trade zone and a trade exhibition zone. It integrates trade, exhibition, entertainment, tourism, and shopping, among other things, to propel the development of the Taoyuan airport into a digital airport city whereby both state-run and privately owned firms can work closely to provide new opportunities and services. It is hoped that in the future more relaxed tax practices can be introduced, limitations on land use removed, and additional encouraging initiatives undertaken, together with a joint effort of relevant industries, government authorities, and the academic circle, to attract newly designed and large capacity investments for the implementation of this ambitious intelligent community project under which comprehensive and innovative services are to be rendered. Furthermore, the county government will start a U-Taoyuan project that focuses on ubiquitous digital services for a great variety of businesses such as transport, medical care, and housing, with a view to pushing for the full development of information-related industries in the county. When completed, it is expected that each and every foreign passenger arriving at the Taoyuan airport is able to immediately sense the friendly atmosphere created by the county government. The U-Taoyuan scheme will also give attention to weaving digital services seamlessly into the lives of all residents there in the hope of making the county become an intelligent city. The next target is to win first place in the ICF Smart21 competition.
At the initial stage of its development, the Taoyuan aerotropolis must put emphasis of its operation on soliciting business and offering tourist services. Thus, the availability of a platform for integrated information services has become the most urgent priority in setting up basic systems in the airport city. Imagine that the captain of a Taoyuan-bound flight is making this announcement: “Good afternoon, folks. We are commencing our decent into Taoyuan. Our ETA (that’s estimated time of arrival) at Taoyuan International Airport is 2: 25 pm, … We hope you have a pleasant journey!” As the passengers are reaching for overhead compartments for carry-on bags in preparation for getting off the plane, they all feel a different feeling about the destination come over them. Every flight approaching the Taoyuan airport carries passengers with different types of purposes. To be consistent with a variety of international needs demanded at an aerotropolis, the Taoyuan airport will provide a passenger-based platform for integrated digital services to meet a wide range of requests that suits the needs of all types of travelers. Possible scenarios at the airport are as follows: Scenario 1 – Transit Travelers: Jack, from the UK, is to stop over at the Taoyuan airport for two hours in transit to Australia. During the waiting for his connection, Jack is able to have the computer at the airport, his own laptop or notebook hooked up to the Internet provided there free of charge to check the latest weather reports in Australia, make confirmation with the Australian hotel about the time of his arrival, talk on the Web with his family back in Britain about his arrival without mishap, or take a quick look at information about some Taiwanese specialties available at the duty-free shops, something he could buy in transit for home on the way back for his relatives and friends. Scenario 2 – Business Travelers: David, president for Asia-Pacific region of a well-known international logistics company, is in Taoyuan for an inspection of the free trade zone and is scheduled to stay for two weeks on the island. Naturally, David, upon landing, shows more interest than do other passengers in the extensive facilities and workings at the airport city. Inspecting various functional services inside the airport, Jack easily connects himself to the wireless broadband network by his cell phone, experiencing services offered on a platform for integrated information based on passenger needs, a device that is multi-linguistic, easy to operate, as well as stable and quick in transmission. Warm sentiments on the part of David toward the Taoyuan aerotropolis are growing. Like David, travelers who frequent many different places have to maintain a close liaison with their offices and customers, as well as keep themselves abreast of the latest developments on the international economic scene and of the local information at their travel destinations. Therefore, the availability of convenient and multiple mobile services has become an essential requirement for David in selecting a city for investment. Taoyuan is obviously well above the threshold for this requirement.
Mobile Internet in Taiwan
An Aerotropolis to Meet Various Passenger Requests and to Provide Platform for Integrated Information Services
17
Mobile Internet in Taiwan 18
Scenario 3 – Backpack Travelers: A group of Japanese students are too urgent to get off the plane starting their adventure in Taiwan. Right through the exit, these students come to the car rental counter and set off in a car with GPS. In no time do they connect themselves to the free wireless network provided by the airport, and decide to head for their first stop, Dasi township, after reading a local tour map shown on a platform for integrated information. Before departing for Taiwan, the students had learned through the Taoyuan Web that Dasi is the island’s first scenic spot where the LBS mobile positioning technology has been applied. Travelers are able to borrow or rent free of charge a conducted tour device to get access through Wi-Fi to a Dasi mobile tour guide service (Figure 14) for a total of six categories of information on gourmet food, historic sites and temples, shopping, hotel accommodation, scenery, as well as transportation in adjacent areas. Thus, even if they do not receive enough tourist information before arrival, the students are poised to embark on an adventure without being accompanied by a professional tour guide. They enjoy a pleasant journey that leads them to visit the old Dasi suspension bridge and to taste the delicious dried tofu, to name a few.
Figure 14 Map Indicating a Dasi Mobile Tour Guide Service in Taoyuan
Source: http://wdasi.m-taoyuan.tw/tw/
Conclusion
Mobile Internet in Taiwan
The Taoyuan government fully understands the importance of broadband development and information application to modern cities. In addition to covering such basic needs as access to the Internet in the lives of a city’s residents, digital services should be also extended to various sophisticated industries. The promotion of the intelligent Taoyuan aerotroplis project aims to enhance the airport’s overall competitiveness with its counterparts in other Asia-Pacific nations through development and application of the information network. Ultimately, the county government hopes that the aerotropolis can combine the lives of the residents in surrounding areas with the local industrial development projects to form a common living community whereby the competitive edge of Taoyuan as an intelligent airport park and that of Taiwan as an advanced country can be considerably improved.
19
Intelligent Homes & Urban Aesthetics Transform Kaohsiung City into a Smart and Beautiful Metropolis "Kaohsiung isn’t only beautiful, but smart, too!" People always associate Kaohsiung with its blooming iron and steel industry, making it an industrial city in most people’s mind. However, all the preconceptions people may have had about Kaohsiung are overturned in 2009. In recent years, Kaohsiung City cleaned up the Love-River that runs through the city and hosted the World Games 2009, which was a resounding success. The World Games 2009 not only stimulates a new wave of public constructions in the city but also successfully markets Kaohsiung internationally. One may wonder inside his/ her mind: “Who are the masterminds making Kaohsiung such a charming and beautiful city?” You may not notice that, aside from the beautiful city landscape Kaohsiung City has, it is also getting “smarter” through the deployment of Internet infrastructure, such as various intelligent IT applications. Kaohsiung is now transforming itself into a beautiful, intelligent and sustainable city, and an ideal place to live and work. Kaohsiung can be compared to a beautiful woman whose outer beauty is readily apparent. With accumulation of time and experience, the wisdom and intelligence Kaohsiung City possesses will penetrate into the daily lives of its citizens.
Mobile Internet in Taiwan 20
An Ubiquitous & Intelligent City: The Next Step for the City of Water and Greenery
Intelligent Living: Fiber-Optic Internet at Homes While working on improving Kaohsiung’s city landscape, the City Government has not neglected the deployment of intelligent-related infrastructure. According to the latest survey results released by III-FIND, the individuals broadband awareness rate at Kaohsiung City reaches 77.1%, the second highest in Taiwan, while the households broadband penetration arrives nearly 85%. In addition, 20.3% of the new residential buildings now have fiber-optic Internet access. All these facts reflect the city a place having high level of e-readiness. To promote fiber-optic broadband network rollout and increase the fiber-optic broadband penetration rate in the future, Kaohsiung City Government’s Urban Development Bureau is exploring the possibility of incorporating the provision of fiber-optic Internet access into the city’s urban planning standards, and providing incentives to real estate developers to install fiber-optic Internet inside new residential buildings, with the expectation to make people enjoy a wide range of new intelligent home applications and services that usually require high bandwidth, such as home security monitoring services. “Mobile Eyes”: Ensure the Security of Kaohsiung City and its Residents The deployment of fiber-optic Internet access inside residential properties can facilitate the implementation of home security monitoring services. Kaohsiung City Government also works actively on protecting residents
Mobile Internet in Taiwan
The High Speed Rail slows down as it approaches the Tsoying Station. We arrive at Kaohsiung, the second largest city located on the southwest coast in Taiwan. Kaohsiung City covers an area of 1.54 million square kilometers, and has a population of 1.51 million people. It has hills, rivers and lakes, a harbor, and beautiful ocean views. In the past, Kaohsiung was an industry-heavy port city with the highest population density in Taiwan. Over the past few years, the Kaohsiung City Government has been working hard to beautify the city. The planning initiatives including street lights and trees to the design, style and color of the World Games 2009 Main Stadium display a painstaking attention to every aspect of the urban aesthetics, transforming Kaohsiung City into a new face. While visiting Kaohsiung, you can ride a bicycle along the verdant banks of the Love-River, visit the Wetlands Park, or simply travel around with the Kaohsiung Mass Rapid Transit (KMRT) and admire various thematic exhibitions and installations at public art galleries inside the KMRT stations (e.g. The Dome of Light at the Formosa Boulevard Station). You can also experience the beauty of Kaohsiung through visiting the filming locations of Black and White, this year’s most popular TV series in Taiwan, from the World Games 2009 Main Stadium, the Kaohsiung 85 Building to Kaohsiung’s Fisherman’s Wharf. The efforts that Kaohsiung City Government has devoted into building a fresh, beautiful and sustainable city where people can enjoy the high quality of life will be readily apparent to any visitors in the city.
21
through implementing new disaster prevention, transportation and other community safety measures. In collaboration with Chunghwa Telecom to participate in the M-Taiwan Project, Kaohsiung City Government has developed the “Mobile Eyes” digital security service (Fig. 15), which helps to protect citizens’ lives and properties 24 hours a day, 365 days a year through real-time video monitoring. This system was used for the security planning of the World Games 2009 before; in the future, it will be extensively applied to other urban security applications, such as evidence collecting for traffic violations and fire prevention reporting system.
Mobile Internet in Taiwan 22
The “Mobile Navigator” and the Intelligent Transportation System (ITS): Create Tourism Benefits and Make Tourists Feel at Ease Th e i n t e g ra t i o n a n d a p p l i c a t i o n of information and communications technologies (ICTs) can not only boost a city’s competitiveness, but also enhance its image, and provide a safe and friendly atmosphere for visitors. M-Kaohsiung (part of the M-Taiwan project) provides the World Games organizer with 1,000 “Mobile Navigator” handsets (Fig. 16) to better serve and connect delegation leaders, volunteers, athletes, referees and guests. The ultimate goal was to make sure all the athletes and visitors from all over the world who had come to take part in the World Games would feel Kaohsiung a hospital and friendly city. The “1288 Helpline” was also launched to help people find the best places to eat or have fun in Kaohsiung, so that, they could visit Cijin fishing harbor for fresh seafood, go to Sizihwan to surf or watch the sunset, in addition to watching or taking part in the World Games. The 1288 Helpline service also successfully promotes Kaohsiung City as a whole at the same time. With the establishment of Taiwan High Speed Rail, Kaohsiung Mass Rapid Transit (KMRT) and the Kaohsiung Software
Figure 15 The “Mobile Eyes” System
Source: Kaohsiung City Government, Chunghwa Telecom
Figure 16 The “Mobile Navigator” System
Source: Kaohsiung City Government, Chunghwa Telecom
Technology Park, the city now attracts more and more tourists and business visitors than it did in the past. In a fast-moving metropolis where every second counts, being able to get a safe and comfortable taxi quickly is an indispensable need for business visitors. The Intelligent Transportation System (ITS) adopted by three major taxi firms in Kaohsiung makes life a lot easier for business visitors in this respect. The ITS integrates a range of advanced technologies, including GPS, wireless communications, GIS (Geographic Information System) and automated dispatching functions. If you need a taxi in Kaohsiung, the ITS not only makes it easier for you to call a taxi, but also records information on drivers’ names, vehicle registration numbers, and the taxi routes. And if you happen to forget things in the taxi, they can always be traceable for you as long as you keep the taxi receipt. ITS is not only convenient and safe but also environmentally friendly. The system can help taxi drivers to avoid traffic jams during rush hours and when there are accidents on the road. Moreover, ITS makes taxi dispatching more efficient, reducing the number of taxis that are driving around without passengers at any given time. This actually reduces energy consumption and decreases air pollution.. ITS is a vitally important green IT application that reduces carbon emissions and makes the city more sustainable as a whole.
The concept of “intelligent city” attracts a great deal of attention these days. Intelligent city can provide residents with better living environments and attract the investments from innovative enterprises, which will boost the city’s overall competitiveness. To go along with the consolidation project of Kaohsiung City and County, the City Government is currently planning to transform the Kaohsiung Multifunctional Commerce and Trade Park into an intelligent commerce and trade park and make effective uses of the nextgeneration broadband, digital TV and sensor networks. All these efforts turn into one common goal- ensure each resident and visitor to experience the beauty and intelligence of Kaohsiung.
Mobile Internet in Taiwan
Consolidation of Kaohsiung City and County: Transform Kaohsiung into a Digital and Hi-Tech Metropolis
23
Paradise for Mobile Workers: Intelligent Taipei As pointed out in Thomas Friedman’s best seller«The World is Flat», with broadband plus your own ambition you can reach wherever you want to be, no matter where you are. This explains the indispensable role of broadband Internet in the Information Era. Thanks to the prevalence of the Internet, boundaries between countries have become blurred. Widespread wireless Internet base stations, far-reaching fiber optic cables and advanced network convergence technology are making changes either tangibly or intangibly. All aspects of lives across cities are closely connected. Whether it is to meet basic demands for living, such as communication, social interaction and entertainment, or for business purpose to facilitate the back and forth in exchange of information, financial flows and goods, all these depend on the broadband Internet whereby immediate and efficient communication is made possible. Taipei, the finest city of Taiwan, realizing the advancement of broadband can help urban development become an early adopter of broadband Internet. In 1999, the CyberCity program was set to make a difference in a phase-by-phase fashion. In the first phase, holding the belief that “frequent the net” can “free up the roads”, the goal was to enhance e-government services as well as e-life application services for the citizens. The second phase aimed at realizing the idea of “digital city, mobile Taipei”. Efforts were put in deploying a citywide public wireless network with the expectation of turning Taipei into one of world’s most competitive cities.
Taipei—World’s Top Mobile City
Mobile Internet in Taiwan 24
In recent years, Taipei has been receiving several international awards for its hard work on digitalization. Firstly, Taipei was named one of Intelligent Community Forum’s Top Seven Intelligent Communities of 2003. Then in 2006, Taipei was honorably selected as the Intelligent Community of the Year by the same organization. Meanwhile, JiWire, another international organization, recognized Taipei’s effort in establishing public wireless network. With over 5,000 Wi-Fi hot spots all over the city, Taipei has managed to win the title of world’s top mobile city. The CyberCity program had laid the groundwork in Wi-Fi network infrastructure in Taipei. And the wireless Internet environment is even mature with the establishment of WiMAX base stations as part of the M-Taiwan project. Between January and December in 2009, with support from companies including MiTAC Inc., the Grand Formosa Regent Taipei, VMAX, etc., Taipei Municipal Government took part in a mobile city tour project named ”Discover Taiwan”. It was a sub-project of the M-Taiwan project, aiming at developing city tour services for cities with access to WiMAX service. This sub-project will integrate existing e-services to provide citizens and tourists within the country and
abroad with bountiful real-time services that are easy to use. The services will cover four categories–mobile touring system, mobile traffic information, mobile e-government and mobile healthcare services. All these will help turning Taipei into a world class friendly city as well as the first model M-City of the country. Services content will encompass seven signature mobile services including traveling sites selection, mobile navigation and touring guide, travelers’ log, travel information sharing, messaging and health monitoring. With the highly developed wireless network, not only will Taipei residents benefit from mobile services, but will the tourists and business travelers provided a friendly travel and work environment. (Figure 17)
Figure 17 Using Mobile Internet in Taipei
Source: Taipei Municipal Government
The municipal government holds the belief that both a broader insight and additions of new meanings and appearances to the city is required if to outwit past achievements. According to the latest survey conducted by FIND (Foreseeing Innovative New Digiservices), Taipei City performs impressively on broadband-related indicators, including Internet Penetration (75.5%), Business Broadband Internet Penetration (98.5%), Household Computer Penetration (90.3%) and New Building Fiber-Optic Access Rate (41%), showing its sound conditions to build up an intelligent city. Following the CyberCity program is the “UI-Taipei” program meant to be carried out from 2007 through 2010. “The UI-Taipei 2010” program centered in the integrated services combining concepts of intelligence and ubiquity and schemed out information developing strategies in three domains as follows. 1. e-Government: Provide high quality civil services, and improve efficiency of civil services. 2. e-Community: Encourage citizens’ participation in their neighborhoods, and energize the city. 3. e-Life: Make people’s lives convenient, and increase city competence.
Mobile Internet in Taiwan
Intelligent Life Application Services Made Easy by “UI-Taipei 2010” Program
25
Once the aforementioned information developing strategies are put into practice, Taipei citizens will be able to make use of expanded IT-enabled life application services. Here is an example of citizens’ healthcare service. People over 40 years old showing signs of three highs, namely high blood pressure, blood sugar and cholesterol, are target clients in this healthcare service provided free of charge by the municipal government. With daily measuring and recording of the three physiological data, each target client’s health profile is made. Information on each individual also include health checkup results, past history and family history. All the information can be viewed online when the patient pays a visit to the doctor and at the same time helps the physician reaching an accurate diagnosis. The municipal government also looks forward to further working with retired physicians and nurses as well as volunteer workers to assist the citizens in obtaining relevant information, seeking proper medical services and conducting online medical consultation. Through these measures, medical resources can be properly allocated and used. Most important of all, the critical period for treatment will no longer be missed, and the recovery rate raised. The most up-to-date data shows 1,950 participants in this healthcare service.
Smart City Lightened Up with Fiber-Optic Internet Talking about smart cities, fiber-optic and broadband Internet are both essential players. The deployment of fiber-optic cables will facilitate Taipei City Government to launch the “Triple Play Application (telephone, TV and Internet)”, making it one of the key information constructions in the UI-Taipei 2010 Program. Public properties, such as common pipelines, sewer systems, curbsides, riverside highways, elevated highways, bridges and subway rails, are released by the government for operators to deploy fiber-optic cables and relevant equipments. On one hand, upon completion of the optic fiber deployment, Taipei citizens will be able to use low cost, high speed Internet services and IT-enabled life application services, including HDTV, Digital TV, IPTV, video conference, video phone, telehealth service, digital security system, and cloud computing service. On the other hand, Taipei Municipal Government will be able to cut down costs and upgrade the city’s overall competition by providing Wireless Broadband Service, Digital Multimedia Broadcasting Service, Home Network Service, Telematics Service, RFID-based Service and Internet Telephony. Mobile Internet in Taiwan 26
Conclusion
Mobile Internet in Taiwan
It is estimated that by 2025, there will be 100 cities of over one million population each. Urbanization around the globe has placed impacts across countries, industries and our living environments. Smart cities are the topic being talked and discussed in every occasion. As the leading smart city on this island, Taipei has launched its UI-Taipei 2010 program, with “sustainability” serving as its core value, to realize the prospect of the city–“riverbank, humanity and technology in Taipei”. In the long run, through widely available easy-to-use communication devices, all Taipei citizens will be able to make use of all kinds of civil information services anytime and anywhere. Meanwhile, the UI-Taipei program is also in line with the central government’s policy on constructing “a high quality Internet society”. Moving on with the ideal of building a sustainable city, Taipei will be able to firmly lay its feet in Taiwan and at the same time view the world with ease.
27
8,000
6,530 3,799
4,000
3,320 1,480
20%
3,055 1,486
2,885 1,459
1,432
2,738
2,742 1,412
2009 Major Development in Taiwan’s Broadband Mobile Telecommunications 0
1,392
48
2007/Q4
2008/Q2
2008/Q4
2009/Q1
2009/Q2
2009/Q3
Month
Key Events
January
NCC Announced 0900 as the First Four Digit Numbers for WiMAX Operators
0%
The National Communications Commission (NCC) had chosen 0900 to be the first four digits of the 10 digit phone number for WiMAX operators. Vee Telecom Multimedia was allocated the first “0900-0” number, followed by “0900-1” for Global Mobile, “0900-2” for VMAX, ‘0900-3” for Far Eastone, “0900-5” for First International Telecom, and “0900-6” for Tatung InfoComm. The allocation of the fifth numbers was decided randomly from a draw. The numbers given to the operators can be used for various purposes such as voice and data transmission, depending on the interconnection between company’s communication system and cellular or PSTN (Public Switched Telephone Network). Furthermore, the new WiMAX voice service is also expected to be connected with mobile and local phone in the future.
March
Mobile Internet in Taiwan 28
NCC’s New Price Ceiling Caused Mobile Phone Rate to Drop 4.88% The National Communications Commission (NCC) passed several proposals regarding mobile and landline voice service rates on March 25, 2009, which were scheduled to take place on April 1, 2009. The proposals include putting a price ceiling on the voice plans of 2G mobile service, prepaid cards and landline to mobile calling. These price changes can benefit as many as 16 million users, and lower the phone rates by an average of 4.88%. Looking at Chunghwa Telecom’s hourly rate of landline to mobile calling during off-peak hours for example, the new policy had decreased the rate by NT$ 16/ hr to NT$ 310/ hr. The NT$ 128 monthly plan for mobile to landline calling had also decreased by NT$ 36/ hr to NT$ 529/ hr. The pricing policies were announced by NCC in the end of 2006 as a three year plan to allow gradual drops in phone rates from 2007 through 2009.
April
Tatung InfoComm Launched Taiwan’s First WiMAX Service in Penghu Tatung InfoComm officially launched Taiwan’s first WiMAX service in Penghu on April 27. The WiMAX operator promoted the NT$ 699/month 2-year contract plan with free WiMAX network card for first several months after the plan is launched to attract customers who prefer high speed Internet. The Penghu WiMAX network has population coverage of 80%, and on-the-spot testing shows that the WiMAX network card could carry out wireless transmission under the speed of 100km/hr, and a fixed-spot online download up to the speed of 8Mbps, which is faster than the current 3.5G network card. Tatung InfoComm’s decision to launch the first WiMAX service in Penghu could implement the Government’s policy to minimize the rural-urban digital divide, as well as to spread the natural beauty of Penghu around the world, boosting the region’s tourism and economic development.
Looking at Chunghwa Telecom’s hourly rate of landline to mobile calling during off-peak hours for example, the new policy had decreased the rate by NT$ 16/ hr to NT$ 310/ hr. The NT$ 128 monthly plan for mobile to landline calling had also decreased by NT$ 36/ hr to NT$ 529/ hr. The pricing policies were announced by NCC in the end of 2006 as a three year plan to allow gradual drops in phone rates from 2007 through 2009.
April
Tatung InfoComm Launched Taiwan’s First WiMAX Service in Penghu Tatung InfoComm officially launched Taiwan’s first WiMAX service in Penghu on April 27. The WiMAX operator promoted the NT$ 699/month 2-year contract plan with free WiMAX network card for first several months after the plan is launched to attract customers who prefer high speed Internet. The Penghu WiMAX network has population coverage of 80%, and on-the-spot testing shows that the WiMAX network card could carry out wireless transmission under the speed of 100km/hr, and a fixed-spot online download up to the speed of 8Mbps, which is faster than the current 3.5G network card. Tatung InfoComm’s decision to launch the first WiMAX service in Penghu could implement the Government’s policy to minimize the rural-urban digital divide, as well as to spread the natural beauty of Penghu around the world, boosting the region’s tourism and economic development.
May
Chunghwa Telecom Takes Part in Building the Asia-Pacific Undersea Fiber-Optic Cable Chunghwa Telecom and eight other Asia-Pacific telecommunication operators signed the memorandum of cooperation for building the undersea fiber-optic cable in Asia-Pacific region, the Asia-Pacific Gateway (APG), on May 25. The total capital invested for the project would be 600 million U.S. dollars, with Chunghwa Telecom contributing 40 million U.S. dollars. The nine investing members include Chunghwa Telecom (Taiwan), China Telecom (China), China United Telecommunications (China), NTT Communications (Japan), KT Corporation (Korea), PLDT (Philippines), VNPT (Vietnam), TOT (Thailand), and Telekom Malaysia (Malaysia). The APG inter-connects the main developing economies in the Asia-Pacific region, as well as being the first direct gateway with capacious bandwidth between Taiwan and the Southeast Asian countries. The bandwidth between Taiwan and mainland China will also widen when the project is finished, as there are now more information interchanging back and forth between the two regions. The APG has a length of 8,000 km, providing a transmission capacity of at least 4Tbps, and is expected to be initiated in 2011.
COMPUTEX Taipei 2009 Showed Taiwan’s WiMAX Achievements “WiMAX On the Move” COMPUTEX Taipei 2009, the largest computer exhibition in Asia, was hosted in Taipei for five days from June 2nd to 6th. The focus this year was on the achievements in M-Taiwan program and other ICT products in Taiwan. The stalls for WiMAX and other communication products had increased from 250 last year to 700 this year, which included companies in every sector of the WiMAX industry from down-stream, middle-stream, to up-stream manufacturers. The equipment companies which participated were Intel, Alvarion, Fujitsum, R&S, Gemtek, Microelectronics Technology Inc., Acer, dmedia, and Tecom etc. WiMAX operators such as Tatung InfoComm, Global Mobile, Vee Telecom Multimedia, and VMAX also took part in the exhibition. The focus of COMPUTEX Taipei 2009 was split into three main sectors – M-Taiwan, Intel’s mobile WiMAX device, and WiMAX operators’ application services. The visitors this year has grown from 107,000 people last year to 119,000 people this year, which again showed the potential of the WiMAX industry in Taiwan.
July
Tatung InfoComm Launched WiMAX Service in Kaohsiung City Tatung InfoComm announced the launch of its WiMAX service in Kaohsiung City on July 8, which made Kaohsiung the first city on the island of Taiwan to have WiMAX commercial service. Only Internet access service is provided in the early stage, providing individuals and households a variety of choices, such as the all-you-can-eat plan (NT$ 789/ month) or pay-by-time plan. As more and more WiMAX terminal devices like
Mobile Internet in Taiwan
June
29
as Tatung InfoComm, Global Mobile, Vee Telecom Multimedia, and VMAX also took part in the exhibition. The focus of COMPUTEX Taipei 2009 was split into three main sectors – M-Taiwan, Intel’s mobile WiMAX device, and WiMAX operators’ application services. The visitors this year has grown from 107,000 people last year to 119,000 people this year, which again showed the potential of the WiMAX industry in Taiwan.
July
Tatung InfoComm Launched WiMAX Service in Kaohsiung City Tatung InfoComm announced the launch of its WiMAX service in Kaohsiung City on July 8, which made Kaohsiung the first city on the island of Taiwan to have WiMAX commercial service. Only Internet access service is provided in the early stage, providing individuals and households a variety of choices, such as the all-you-can-eat plan (NT$ 789/ month) or pay-by-time plan. As more and more WiMAX terminal devices like MID, mobile phones, and notebooks become available in the market, application services like mobile TV and VoIP are also expected to be released in the near future. Aside from the Internet access services, Tatung InfoComm will also partner with Internet platform and content providers like Google and Atlaspost, building up localized value-added service platform in Kaohsiung City, providing social networking, instant messaging, online virtual map, and email services.
August
Taiwan’s WiMAX Products Gained M-Taiwan’s Approval – a Big Leap in Equipment Interoperability The second M-Taiwan certification ceremony was hosted by M-Taiwan WiMAX Interoperability and Verification Office of the Industrial Development Bureau on August 27. The ceremony had given out certificates to five products, including WiMAX terminal equipments produced by Taiwanese producers ZyXEL and Gemtek. Motorola and Alvarion’s WiMAX base station facilities were also on the list, as well as Taiwan’s first ever self-developed WiMAX chip produced by Mediatek. This increased the number of certificates awarded this year to 11 companies, including the ones awarded to Tecom, Accton, Data International, D-Link, NEC, and Alcatel-Lucent in the February ceremony.
September
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Taiwan’s Online Music Service Available in App Store and Android Market Taiwan’s online music operators believe digital music will be one of the killer applications on smart phones and they have devoted lots of efforts to develop this industry. KKBOX Taiwan, one of the leaders in Taiwan’s online music industry, announced its new mobile music application for Google’s Android platform in September 2009, which will be pre-loaded on Taiwan HTC’s smart phone – Hero. This is the second achievement for KKBOX since joining up with Apple’s iPhone App Store in January 2009. Taiwanese music consumers can now enjoy music online or offline on iPhones and Android smart phones through 3G mobile Internet whenever and wherever they go.
October
Taiwan Operators Introduce Mobile Software Stores and Value-Added Platforms to Strive for Business Opportunity in Mobile Internet Market Smart phones of 2009 are equipped with high-speed Internet access capabilities, meeting the users’ demand for getting value-added services using mobile Internet. Taiwan’s three leading telecoms caught up with the trend and introduced online mobile software stores as well as other value-added service platforms. Chunghwa Telecom launched the value-added service platform – “Hami” in January, providing information on business and entertainments such as food, fashion, living, transport, and stock trading. Taiwan Mobile’s customized value-added service platform – “match” launched in August, aims to provide localized services, such as information on day-to-day living and selected Android applications. Far Eastone’s Chinese interface platform – “S Mart”, not only provides daily living information and tools such as real time news, e-books, stock trading, and volume memory management, but also allows users of other telecoms to login this platform. Furthermore, S Mart invites other content providers and mobile application developers to join the platform, building a fuller and richer
which will be pre-loaded on Taiwan HTC’s smart phone – Hero. This is the second achievement for KKBOX since joining up with Apple’s iPhone App Store in January 2009. Taiwanese music consumers can now enjoy music online or offline on iPhones and Android smart phones through 3G mobile Internet whenever and wherever they go.
October
Taiwan Operators Introduce Mobile Software Stores and Value-Added Platforms to Strive for Business Opportunity in Mobile Internet Market Smart phones of 2009 are equipped with high-speed Internet access capabilities, meeting the users’ demand for getting value-added services using mobile Internet. Taiwan’s three leading telecoms caught up with the trend and introduced online mobile software stores as well as other value-added service platforms. Chunghwa Telecom launched the value-added service platform – “Hami” in January, providing information on business and entertainments such as food, fashion, living, transport, and stock trading. Taiwan Mobile’s customized value-added service platform – “match” launched in August, aims to provide localized services, such as information on day-to-day living and selected Android applications. Far Eastone’s Chinese interface platform – “S Mart”, not only provides daily living information and tools such as real time news, e-books, stock trading, and volume memory management, but also allows users of other telecoms to login this platform. Furthermore, S Mart invites other content providers and mobile application developers to join the platform, building a fuller and richer service center.
November
Chunghwa Telecom Introduces 20Mbps Fiber-Optic Broadband Service Plan Chunghwa Telecom announced the plan to introduce new fiber-optic broadband service plan with 20Mbps download rate at the “2009 Taiwan IT Month” on November 28, and visitors of the exhibition could sign up for the new service. Chunghwa Telecom was not the only one to offer the service; So-net also introduced a similar service at the exhibition. Chunghwa Telecom’s broadband plan will charge NT$ 1,389 per month, including a fiber-optic cable renting fee of NT$ 700 and an Internet connection service fee of NT$ 689. Chunghwa Telecom’s 20Mbps fiber broadband service already has 80% of the national population coverage, and is expected to drive a large portion of Internet users to sign up for this high speed broadband service plan. Based on the data announced by the FTTH Council, Taiwan’s household fiber-optic broadband penetration is fourth in the world, and had increased from 12% in 2008 to 19% in 2009.
WiMAX Services Launched in Northern and Southern Taiwan Global Mobile and Far Eastone had launched their services in the Hsinchu region and Taichung City respectively in the end of December 2009. Global Mobile’s WiMAX coverage in the Hsinchu region had exceeded 96% of the population, and users can sign up for the service in retail stores in Hsinchu region as well as portal website on Yahoo! Taiwan. Global Mobile offers an “all-you-can-eat” monthly Internet access plan costing NT$ 679 using WiMAX data card. Far Eastone on the other hand has Internet coverage of up to 90%, and offers unlimited broadband service plan as well for NT$ 599 per month. WiMAX operators in Taiwan including Far Eastone, Global Mobile, Tatung InfoComm, and VMAX are scheduled to sign the WiMAX roaming agreement in the near future, offering subscribers across regions to connect WiMAX through other service operators in Taiwan. If 2009 is the starting year of WiMAX, 2010 will be the year of growth.
CoCID, III, and TEEMA Push Fiber-Optic Broadband Building The Committee of Communications Industry Development (CoCID) in Ministry of Economic Affairs, the Institute for Information Industry (III), and the Taiwan Electrical and Electronic Manufacturers Association (TEEMA) work together to stimulate the growth and demand for broadband Internet by pushing Fiber Broadband Building (FBB), which have already taken effect in various counties and cities in Taiwan. By the end of November 2009, 258 construction cases had been awarded the “FBB Certificate” by the Communications Industry Alliance (CIA) in TEEMA, accounting for a total number of 48,930 households. The research data produced by III-FIND shows the
Mobile Internet in Taiwan
December
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20Mbps fiber broadband service already has 80% of the national population coverage, and is expected to drive a large portion of Internet users to sign up for this high speed broadband service plan. Based on the data announced by the FTTH Council, Taiwan’s household fiber-optic broadband penetration is fourth in the world, and had increased from 12% in 2008 to 19% in 2009.
December
WiMAX Services Launched in Northern and Southern Taiwan Global Mobile and Far Eastone had launched their services in the Hsinchu region and Taichung City respectively in the end of December 2009. Global Mobile’s WiMAX coverage in the Hsinchu region had exceeded 96% of the population, and users can sign up for the service in retail stores in Hsinchu region as well as portal website on Yahoo! Taiwan. Global Mobile offers an “all-you-can-eat” monthly Internet access plan costing NT$ 679 using WiMAX data card. Far Eastone on the other hand has Internet coverage of up to 90%, and offers unlimited broadband service plan as well for NT$ 599 per month. WiMAX operators in Taiwan including Far Eastone, Global Mobile, Tatung InfoComm, and VMAX are scheduled to sign the WiMAX roaming agreement in the near future, offering subscribers across regions to connect WiMAX through other service operators in Taiwan. If 2009 is the starting year of WiMAX, 2010 will be the year of growth.
CoCID, III, and TEEMA Push Fiber-Optic Broadband Building The Committee of Communications Industry Development (CoCID) in Ministry of Economic Affairs, the Institute for Information Industry (III), and the Taiwan Electrical and Electronic Manufacturers Association (TEEMA) work together to stimulate the growth and demand for broadband Internet by pushing Fiber Broadband Building (FBB), which have already taken effect in various counties and cities in Taiwan. By the end of November 2009, 258 construction cases had been awarded the “FBB Certificate” by the Communications Industry Alliance (CIA) in TEEMA, accounting for a total number of 48,930 households. The research data produced by III-FIND shows the percentage of new buildings embedded with optic fiber has reached almost 24%, which indicates the concept of FBB has already been accepted by many construction companies and buyers in Taiwan.
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Publisher Industrial Development Bureau, Ministry of Economic Affairs
Publishing Office No. 41-3, Sinyi Road, Sec.3, Taipei, Taiwan, R.O.C. http://www.moeaidb.gov.tw
Editorial Department Innovative DigiTech Enabled Applications & Service Institute, Institute for Information Industry
Editorial Office
Mobile Internet in Taiwan
8F., No. 133, Sec. 4, Minsheng E. Rd., Songshan District, Taipei 105, Taiwan, R.O.C. Tel: 886-2-2713-9000 E-mail: find-eng@mail2.ideas.iii.org.tw Website: mit.find.org.tw
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