1. National Communications Commission W H Liang Senior Engineer National Communications Commission Jan. 12, 2007 The Third Generation Mobile Communications Service Market in Taiwan

2. National Communications Commission Outline   Background   Operators & Systems  Traffic  Revenue & Subscribers   Market share   Application forecast   Conclusion

3. National Communications Commission 2 Background  If t  The third generation(3G) mobile communications service franchise and licensing process were conducted in two stages, i.e. beauty contest & auction. The applicant who passed the reviewing of stage one would be a qualified bidder. Then after auction, the winning bidder would be granted the establishment approval after it paid the award price. If t he winning bidder could complete relevant infrastructure deployment within the valid date of approval, the regulator would issue a concession license to the winning bidder accordingly.

4. National Communications Commission 3 Background   There are a total of 5 licensees in Taiwan. The frequency band had been assigned as follows:   license A ： 2 x 15MHz(1920~1935MHz;2110~2125MHz) + 5MHz(1915~1920MHz) license B ： 2 x 10MHz(1935~1945MHz;2125~2135MHz) + 5MHz(2010~2015MHz) license C ： 2 x 15MHz(1945~1960MHz;2135~2150MHz) + 5MHz(2015~2020MHz) license D ： 2 x 15MHz(1960~1975MHz;2150~2165MHz) + 5MHz(2020~2025MHz) license E ： 2 x 20MHz(825~845MHz;870~890MHz)

5. National Communications Commission 4 Background   The applicant of the 3G service had to submit business plan at stage one.   The 3G system technologies selected by operators should follow the IMT-2000 technical standard announced by the ITU.

6. National Communications Commission 5 Operators & Systems   Operators  The 3G services operators in Taiwan include Chunghua Telecom, Taiwan Mobile, Far EasTone, VIBO and Asia Pacific Broadband Wireless Communications Inc(APBW).   Systems:  Only APBW follows CDMA-2000 standard while other operators adopt WCDMA standard.

7. National Communications Commission 6 Traffic  In Oct. 2006  Voice service : 509 million minutes  Data service: 51.4 billion KBytes.

8. National Communications Commission 7 Subscribers & Revenue   3G  Subscribers: 2.88 millions.  Total revenue in Oct. 2006: NT$2.82 billions.   2G  Subscribers: 18.81 millions  Total revenue in Oct. 2006: NT$14.84 billions

9. National Communications Commission 8 Market share  By subscriber (Total: 23,012,000)  2G: 81.75%  3G : 12.53%  PHS: 5.72%  By revenue (Total: NT$18.137 millions)  2G: 81.81%  3G: 15.56%  PHS: 2.63%

10. National Communications Commission 9 Application Forecast   At present, the 3G services still focus on voice and short messages. The 3G operators have continually produced mobile multimedia services, such as video phone, mobile TV, real time news, real traffic reports, video mail, on-line game, and security guard service in Taiwan. In the future, we expect operators to introduce multimedia services such as video, entertainment, location based service,... etc.   The 3G operators have started to evaluate, research, develop and design the wireless technologies of broadband CDMA. Let 3G technologies root and grow in Taiwan.

11. National Communications Commission 10 Conclusion   At present, the 3G subscribers account for 12.62% of population in Taiwan. As estimated, the figure will grow 150 thousands per month and the penetration rate should achieve 50% in five years.   Broadband demand for mobile data communication is a common trend in information society. The content and application development will promote the growth of 3G subscribers.

12. National Communications Commission THANK YOU!!