通訊產業發展推動小組 1 Dual Networked Related Developments in Taiwan Roger Jen-Chieh Cheng Project Leader, Committee of Communication Industry Development (CoCID), MOEA Director of Internet Software Division, CCL/ITRI April. 7th, 2005

通訊產業發展推動小組 2 Outline  WLAN Development in Taiwan  PWLAN Deployment Around the Island Initial Pilot Projects M – Taiwan Program  iB3G Dual-Network Integration Initiative  Conclusion

通訊產業發展推動小組 3 Widening Opportunities in WLAN Industry  Diversified development of WLAN products – enterprise, public, and home  VoIP for wireless communication –VoIP has the potential to become the killer appl. of Wi-Fi, and IMS (IP Multimedia Subsystem) has been defined by 3GPP as a standard. –Promising products include Wi-Fi Telephony Systems, Wireless IP-PBX and Wi-Fi/Cellular Multimode Smartphone, etc.  Wireless technologies making digital home become a reality  Mobile life on the rise

通訊產業發展推動小組 4 Wireless Digital Home  Wireless technologies make digital home a reality :  Cellular: GPRS/3G (WCDMA, cdma2000);WPAN: Bluetooth, UWB & Zigbee; WLAN: x; WMAN: a/e  Promising products include Wireless DVD player/ Internet Camera & Media Adapter. PSTN/PSDN/Internet 2G/2.5G/3G/802.20/B3G BSS 2G/2.5G/3G /802.20/B3G UE WiMAX (802.16a/e) UWB ( a) a/b/g Zigbee ( )

通訊產業發展推動小組 5 Mobile Life on the Rise Seize the chance of reorganization on international division of work (ICT industry upgrade) - changes of major players, in particular, in the US-Europe system and the Japan-Korea system - maintaining Taiwan’s superiority in manufacturing and terminal products and take the chance to grasp the Control Point of Edge Centric Computing Enhance mobile comm. capability of ICT products to be high value added (product side) Promote Mobile Lifestyle service platform to drive/innovate the service industry (service side) Communication WLAN Cellular Computer Consumer Electronics 3C Integration Mobile Comm. Digitalized Content BSS AP WLAN Cellular Enter- tainment VoWLAN App. Broadband Media Health Care LBS Early stage High-Value Added Product Innovative Services and Platform ICT industry upgrade Convergence on Mobile Communication & Digital Life opens up new frontiers in telecom industry.

通訊產業發展推動小組 6 WLAN Development in Taiwan Strong tie to Taiwan ICT development pattern – major supplier of OEM/ODM production Rank No. 1 in worldwide WLAN production Rank No. 2 in Taiwan Communication equipment product category Complete WLAN value chain in Taiwan including system products, SoC/IC design, certification testing labs, and WISP Strong links to broadband internet and cellular communication services

通訊產業發展推動小組 7 ICT Development in Taiwan  Progressing from IT to info-comm (ICT), Taiwan has been a major supplier of OEM/ODM products, and has taken the lead in the mobile communication penetration and broadband take-up.  Mobile operators are effective in offering new services and the general public is receptive to the innovative applications.  Cost-down strategy must complement value-up strategy to stay globally competitive, thus Taiwan is expanding knowledge-based services for sustainable growth. Initiatives such as Mobile Taiwan and iB3G Dual-Network have been launched to enhance the value of product, quality of life, social cohesion and overall competitiveness.

通訊產業發展推動小組 8 Reach for New Peak Content Devices Solutions 5m 10m 15m 20m 25m 12M Internet users (61%) Mobile Phone Penetration( 110%) Global No M Broadband users 1.2M GPRS & WAP Wireless subscribers Taiwan Government invest NT$37B for national BB network, target to have 6M WLAN/WWAN users by 2008 Source:DGT, TWNIC, Sept M web servers Global No. 4 3G service expected launch date : WCDMA – CHT (Q4 ‘04), Taiwan Cellular (Q2 ‘05), FarEastone (Q1’05), VIBO (switch to cdma2000, 2005). cdma2000 – APWB:July, 2003.

通訊產業發展推動小組 9 WLAN Industry in Taiwan (1)  WLAN value chain is complete in Taiwan, but previously there’s only one Wi-Fi Certification Testing Lab. With joint efforts of MOEA/IDB, ITRI and Wi-Fi Alliance, there are 3 new now.  => highly cost-effective, fast turnaround, quick time-to-market Product CategoryCompany System Products 友訊 (D-Link) 、合勤 (ZyXEL) 、正文 (Gemtek) 、建漢 (CyberTAN) 、鴻海 (Hon Hai/Ambit/Foxconn) 、智捷 (Z-Com) 、陽慶 (GlobalSun) 、亞旭 (Askey) 、智易 (arcadyan) 、中磊 (SerComm) 、居易 (Draytek) 、訊舟 (Edimax) 、普萊德 (Planet), etc IC Design 瑞昱 (Realtek) 、 雷凌 (Ralink) 、集耀 (Inprocomm) 、 智通 (Alinx) 、益勤 (ZyDAS), etc. WLAN IC is increasing to 20-40%(E) in 2004 from 10% in 2003 Wi-Fi Certification Testing Lab. 誠信 (ADT) 、台灣檢驗科技 (SGS) 、百佳泰 (NSTL) 、安捷倫 (Agilent) WLAN ISP HiNet(CHT) 、台灣大哥大 (Taiwan Cellular) 、東信 (Mobitai) 、曜正 (Easy- up) 、 ) 蕃薯藤 (Yam) 、 So-net 、鉅坤 (FREE-UP) 、億聯 (Extra-Lan) 、威堡寬 帶 (WePower), etc. Source: Goldman Sach & Ralink, ITRI/IEK,

通訊產業發展推動小組 10 There are 300+ IC design companies in Taiwan, several of them are working on WLAN & multimedia related ICs Multimedia (ex: Video/Audio Codec Chipset,etc.) Peripherals or I/O devices and cards (ex: USB/IDE/VGA,etc.) Taiwan has the great potential to integrate WLAN technology into various digital consumer electronics products Multimedia –Video/Voice over WLAN –Real-time video conference over WLAN –Wireless DVD PDA with built-in WLAN Other home appliances (Internet refrigerator/TV etc. built-in WLAN) WLAN Industry in Taiwan (2)

通訊產業發展推動小組 11 Cellular communication is another key wireless industry Mobile handsets production in worldwide market share increasing from 10% in 2003 to 15%(E) in 2004 Cellular subscribers represent the majority of wireless services WLAN hotspots have enough radio resources to provide various multimedia/value-added services and create revenue for WISPs and Cellular operators Integrated WLAN and cellular multi-mode devices/cards Telecomm services through the integrated cellular & WLAN networks Seamlessly hand-off between WLAN and GSM/GPRS/3G systems Multi-mode peripheral devices and services –WLAN + GPRS/3G dual-mode card –Develop re-configurable hardware/software modules WLAN Industry in Taiwan (3)

12  Demo projects for 2003 (completed, MOEA/IDB)  Demo projects for 2004 (completed, MOEA/IDB)  Taipei Broadband Wireless City Project (3-Phase, Sept – Jan. 2006, Taipei City Government)  M-Taiwan (Executive Yuan/MOEA+MOI) PWLAN Deployment Around the Island

通訊產業發展推動小組 13 PWLAN Development in Taiwan Airport Hotspot Deployment around 3,000 hotspots(2005/01) Major Service Providers : 5 – 中華電信 (CHT) – 東信 (Mobitai) – 台灣大哥大 (Taiwan Cellular) – 曜正科技 (Easy-up) – 蕃薯藤 (Yam) M- Learning Train Hotels Airport Café shops

通訊產業發展推動小組 14 National Museum of History 名稱：「歷史創新 ─ 神龍再現」大南海 文化園區無線寬頻網路環境建置 計畫 特色：創造博物館無障礙環境，塑造無 線應用之學習場所。建立南海文 化園區無線寬頻網路環境。 Taipei City 名稱：關渡自然公園無線寬頻上 網計畫 特色：建置自然公園無線導覽系 統，推出「綠色 PDA 」， 作為應用於自然場域最佳 示範。 Tao Yuan County 名稱：鐵道桃花園六車站、埔心 牧場、縣府特區無線寬頻 應用示範計畫 特色：提供火車站區無線寬頻網 路服務，塑造科技化市鎮 意像。整合火車站週邊景 點導覽、交通轉乘及當地 文藝活動資訊，促進地區 觀光發展。 Taipei County 名稱：無線環遊滬尾、文化溯源八 里無線導覽計畫 特色：以北縣著名的淡水 ~ 八里 ( 十 三行館 ) 觀光景點與地標為無 線寬頻上網與導覽環境。 ShihSanHang Museum of Archaeology Demo Sites, Northern Taiwan, 2003

通訊產業發展推動小組 15 Tai Chung City 名稱：台中市無線寬頻網路應 用計畫 特色：「數位台中」寬頻城市 願景與發展：全球最成 功的無線網路城市。 Chang Hwa County 名稱：「花鄉古鎮逍遙遊，無線 彰化好風光」計畫 特色：建立鹿港及田尾公路花園 為全國性鄉土教學地點， 倍增觀光客，提升旅遊品 質。 Central Taiwan, 2003

通訊產業發展推動小組 16 Tai Nan City 名稱：府城無線智慧型國際 新都計畫 特色：於火車站、安平 風景區、 文化中心建 置無線寬頻網路環境示範區。 Ping Tung County 名稱：觀光科技大縣 - 墾丁觀光街 道無線寬頻上網計畫 特色：建置墾丁地區主要大街無 線寬頻網路環境，整合並 建置行動數位商圈服務 Southern Taiwan, 2003

通訊產業發展推動小組 17 Taipei County 名稱：無線網路衝衝衝 特色：建置權台第一個全區域無線 網路覆蓋城 - 淡水鎮，提供 VOIP 、便 民服務、無線交易平台、遠端監控 服務 Hsin Chu City 名稱：全方位智慧型交通無限網 特色：以交通為主題的入口網站，提 供自動化且大量化的即時資料收集與整 合，本案入口網整合各項交通資訊與民 生資訊，有助提升網路服務業興起 National Museum of History 名稱：「無線博覽 E-Life Moving 」無 線寬頻網環境建置計畫 特色：透過行動博物館概念，運用博物館 聯盟進行知識創新加值，形成虛擬博物館 群落實行銷營運服務，釋放博物館文化產 業的能量。 Northern Taiwan, 2004

通訊產業發展推動小組 18 Tai Chung City 名稱：數位台中 寬頻城市 特色：結合有線電視、 3G 及 WLAN 無線通訊技術 打造全球最成功的無線 網路城市。 Mt. Jade National Park 名稱：「無線數位化國家公園」 無線寬頻網路環境建置計畫 特色：提供移動式視訊醫療山難 救助系統。整合高山觀光資源及 部落風貌無線應用，進行商務應 用。 Yun Lin County 名稱：發現雲林 無線風情 特色：於縣府特區、北港朝天宮、 太平老街、華山社區建置無線寬 頻網路環境示範區，結合生態、 農產、宗教、人文等進行商務應 用。 Central Taiwan, 2004

通訊產業發展推動小組 19 Kao Hsiung City 名稱：無線 e 擊棒 特色：結合職棒，融入城市 藝術景觀設計環境，呈現文 化、體育、旅遊、學習等多 元應用的規劃特色 Ping Tung County 名稱：屏東觀光科技縣之「無線 墾丁智慧城」計畫 特色：推動恆春半島墾丁街車、 行動付費、 Wi-Fi PHONE 之行動商務服務 Chia Yi City 名稱：溫馨嘉義市 健康諸羅園 特色：結合有線電視業者，建置 無線醫療環境（如健檢、關懷訪 談、巡迴健康篩檢、定位協尋、 隨身照護等） Southern Taiwan, 2004

通訊產業發展推動小組 20 Hua Lien County 名稱：行動部落 健康夢土 特色：建置無線醫療車及部落 無線環境，提供部落弱勢族群 行動醫療及學習環境 I Lan County 名稱：人文科技縣、 M 化新宜蘭 特色：全國第一個縣市在海上 建立移動式 Hot Spot ，並利用無 線寬頻網路定位進行海面導覽 及相關應用。 Kin Men County 名稱：行動部落 健康夢土 特色：建置無線醫療車及部落 無線環境，提供部落弱勢族群 行動醫療及學習環境 Eastern Taiwan, 2004

通訊產業發展推動小組 21 NKSP –Dual-Network Demo,2004 BSS BSS APAP iB3G Infra WLAN Nan Kang Software Park 免設定辦公環境 Camera Server 交通狀況 園區狀況 展場出租 行動保全 LBS Wi-Fi Phone 雙網手機 Phone VoWLAN Content DRM 行動下載 IP network WAPGateway 行動下單 PKI VPN Service trial Business trial Dual-Network Mobile Office Mobile Management Mobile Office Dual-Network iB3G Various Services

通訊產業發展推動小組 22 Taipei Broadband Wireless City Taipei as the global leading Broadband Wireless City – plan to open sky bridges, poles, bus stations, roofs of public building and underground conduits/pipes for deployment. Will install broadband wireless facilities in 30 MRT stations before the end of 2004; complete 90% coverage of city population by the year of 2005 The tender winners are given 9 years of operation right, but need to invest NT$ 3+ B for network construction and submit royalties to Taipei City Govt. Global (Nortel, Tropos, Motorola, etc.)and local companies cooperated to win the tender which is expected to create at least NT$5B revenue. –System integrators: Q-Ware –Telecom Operators: TFN, Sparq, FETnet, VIBO, etc. –ISPs: Seednet, etc.

通訊產業發展推動小組 23 PWLAN Pilot Project Infrastructure deployment –Develop Taiwan to be an island with PWLAN facilities and application services –Plan and execute at least one demonstrative mobile area with local specialties in each county –Deploy at least 3000 hotspots over the island –Offer the roaming environment for at least one million subscribers –Release the content combined with local specialties Elevate abilities of the telecom industry –Achieve at least 80% of domestic market share of access networking and end-user facilities Stimulate a competitive environment for the telecom industry –Develop the roaming center to offer the roaming mechanism for PWLAN and other telecom networks Industrialization of telecom services: encourage the cooperation for domestic industry chain –Export the total solution (both hardware and software) of the demonstrative area PWLAN PILOT PROGRAM Goal Demonstration

通訊產業發展推動小組 24 M-Taiwan Project Infrastructure deployment: develop Taiwan to become an island with mobile application services –WLAN coverage: 80~90% in urban area, 30~40% in rural area, support environment of eight million subscribers for wireless internet access Elevate abilities of the telecom industry: localization of fundamental network facilities –Substitute importing facilities to increase value of domestic telecom industries Stimulate a competitive environment for the telecom industry: create a fair environment for telecom services –Cooperate with fixed network operators to solve the “last mile” problem –Develop WLAN aggregator Industrialization of telecom services: encourage the cooperation for domestic industry chain –Encourage export of telecom total solution. Support export of telecom manufacture with telecom services Provide convenient and high-efficient mobile services to citizens –Develop applications of m-Service, m-Life and m-Learning. Become the top 5 nations in global mobile internet application M-TAIWAN PROJECT Goal Spread-Out

通訊產業發展推動小組 25 BB Network, Local Loop ADSL/Cable/ FTTx Backbon d Cellular ( GSM/GPRS/3 G/PHS ） 台中都會 骨幹網路 高雄都會 骨幹網路 台北 都會 骨幹網路 AP WLAN (WLAN based on BB Network) AP Dual-Network Basestati on m-Govt. ITS m-Health, etc. m-Game M-TV …. Govt. Business m-Commerce Video Conference Construct BB NetworkPromote Application Services 30B7B Home M – Taiwan

通訊產業發展推動小組 26 Development Strategies Turn Taiwan from follower to leader to influence global market and speed up the construction of the required network infrastructure, and use the domestic market demand to drive Mobile Lifestyle industry. Product Life Cycle Market Scale Period Product R&D to 「 seize global market share 」 and 「 Dominate the market 」 Market Dominator Advanced countries drive the early market ConductionExpandingMaturityRegression Early market New Model Old Model Massive production by OEM/ODM Pricing War Manage the up/mid/down stream products integration. Emphasize “system interoperability” and “application service” in order to encourage consumption and education. Emphasize ‘control’ point in marketing rights. Sources : Digi Times revised by IEK

通訊產業發展推動小組 27 Construct M-Taiwan Infrastructure Promote Innovative Tech. & Services Drive M-Business in Enterprises Raise Network Utilization & Popularity M-Service (Government) M-Living (Grassroot) M-Learning (School) M-Taiwan Application Project  Build pervasive online environment scaled up to 5 million people  Construct 10 International scale mobile cities  Increase government efficiencies in serving citizens  Build On-line Learning environment Create domestic needs, Export total solution Be the global leading market and drive industrial development Drive Mobile Lifestyle Industry Execution Plan Complete integrated WLAN & Cellular infrastructure Driving Force of M-Taiwan - Test-bed establishment - Early market product - Total solution Marketing Policy - Be the control platform in the Great China -Global application M – Taiwan Promotion Strategy

通訊產業發展推動小組 28 M-Taiwan Project Administration Innovative Mobile Application Operators Roaming Center System Integration Facilities Offering Development & Deployment of Applications Mechanism of Administration (Development of Rules, Administration and Integration) Deployment of Platform, Standard, Roaming Center, etc. Development in cooperation with governmental policies Deployment of M-City Network m-Service Application m-Life Application m-Learning Application Public Sectors Private Sectors Education Bodies Promotion & Human Resource Incubation Cooperate Actions MobileTAIWAN Cellular App. iB3G App. PDA or NB App.

通訊產業發展推動小組 29 Interne t ISP Mobile Operator WISP CP Aggregator ZooGuideTraffic Warehouse Gov.Ser vices FoodTourArtMuseumLibrary Medicine PortSchool Anytime/anywhere, any kind of access, services CP : Content Provider Services Assisting content and application service with rights protection mechanism. Bringing mobile service and digital content industry to life. Formulate the standard interoperability norm for domestic manufacturers. Establish technical standard and regulations (such as DLNA) to enable compatibilities among networks, systems, applications, and services. M-Learning (School) M-Services (Government) M-Living (Grassroots) Common Mobile Service Platform

通訊產業發展推動小組 30 Test-bed/Service Trial Supporting the development, integration, interoperability and standardization of tech. and service Content and network access integration Demo projects promotion “Common Mobile Service” & ”Testing” Platform Business Trial -> Total Solution Export Raise broadband popularity, construct security mechanism Establish Mobile Networks (WLAN, RFID, WPAN, UWB) Integrate home digital networks Develop Smart phone, PDA phone and dual-net phone Enhance Industrial alliance Innovative services and content Domestic market Domestic Market Trial=>Global Market Export R&D Sys. Integration Standardization Talents Cultivation Export total solution for high profits Taiwan as a test-bed of Mobile Life services to promote integrated applications Taiwan as a Test-bed for Export

通訊產業發展推動小組 31 Project Scope m-Service: 3A Service (Anywhere, anytime, any system) Other Public Agencies Cultural Center Libraries Industrial Park Museums… Choose the cities where have more e-gov services to build m-City and launch iB3G services Choose the region where have more e-gov services to launch pilot programs M-Taiwan ‧ Business information, legal service, digital map inquiry, wireless custom service, cultural center guidance Booking for m- Service SMS notification Door-to-door service… Payment for public fees Tourist information at cultural centers, museums, libraries or sceneries.  Accomplish infrastructure to develop mobile public services M-Service Safety & Security Transportation Medication & Health Care Micro Payment Life-Circle Service Business District Service Hazard Mitigation Service Tourist Service M-City M-Service Tourist Service Life-Circle Service Business District Service Business Service Tourist Service Metropolitan Rural Area

通訊產業發展推動小組 32 Project Scope m-Life: Easy life  Create convenient life style and develop high quality citizen’s way of life Rescue for emergencies SARS Hospital Daily care for elderly Family violence prevention m-Living Game Cartoon Music Gastronome… m-Entertainment Zoo Tourist Wireless internet access Home surveillance Community Security… m-Community Daily Information Convenient Stores Door-to-door Service Food Court Shopping Mall Ticketing… M-TAIWAN m-Health Care AP Sensor ( 血糖計 ) Sensor ( 血壓計 ) Sensor

通訊產業發展推動小組 33 Project Scope m-Learning: Enjoy learning  Overcome the spatial limitation and encourage digital life-time learning. BSS AP Interactive Learning Community Library Schools Family Train station Town Open Spaces Museum Art Center Social Education Agency Courses Digital Content Learning Platform e-Human Resources→m-Human Resources M-TAIWAN

通訊產業發展推動小組 34 Create the New Era for Communication Industry in Taiwan Industry: build up business opportunities for ‘2-Trillion Industries’ –Development for 2-Trillion Industries: promote communication industries to become ‘the 3rd Trillion Industry’ –Integrated solutions: cooperate with international cooperation to stimulate the whole product chain and enhance technical abilities as well as global business opportunities Society: create wireless environment –Development for environment for wireless internet access: 5 million subscribers without surfing barriers –Roaming service promotion in campus: build up wireless campus for on-line learning over the island –Single account: promote single account for each user to roam in all area –Human resource incubation: cooperate with education agencies to offer communication programs and thus to enhance the quality of governmental IT application Nation: strengthen IT infrastructure and service –National competition elevation: become the top 5 nations in global mobile internet application –Governmental efficiency enhancement: offer mobile health care application with efficiency for remote region –Development for mobile cites: build up 10 international mobile cities on the island –Fair-priced services: offer fair-priced PWLAN service to increase the prevalence

35 iB3G Dual Network Integration

通訊產業發展推動小組 36 Integration of WLAN & Cellular Source::In-Stat;IEK ( ) Combo (Cellular/WiFi) Handsets , 60 80, Unit: M Portable internet access device:  Dual mode cell phone vs. Notebook or PDA Easy micro-payment mechanism : SIM-based AAA (Authentication, Authorization and Accounting) vs. Credit card or micro-payment High bandwidth at low price : (WLAN vs. GPRS/3G) Real time video: Video surveillance, video conference, video phone MP3 download (with DRM) Always-connected : IMPS (Instant Messaging and Presence Services) On-line game

通訊產業發展推動小組 37 Taiwan’s iB3G Dual-Network Project (1) WLAN created a disruptive technology in the communications industry, new services and new terminals will thrive. Both the end-users and industries will benefit from this emerging trend of dual network which combines the best of two networks: – cellular (2G/2.5G, PHS, 3G, B3G) + WLAN (802.11x) By exploiting the unique advantages in manufacturing and mobile phone services, Taiwan has launched a national-level iB3G project to grab this new opportunity to become the world’s forerunner.

通訊產業發展推動小組 38 Taiwan’s iB3G Dual-Network Project (2)  Key factors leading to the success of iB3G project include: Good business models User-friendly dual-mode handsets Cost-effective new applications/services  Point of Engagement Services and Applications (enterprise solution+consumer solution) - Low cost broadband services on WLAN; - Anywhere services on cellular network Handset & Chip - Service / application-aware dual-mode handset Access & Networks - Seamless handoff/handover, AAA, Security, Privacy, etc.

通訊產業發展推動小組 39 Access Network Services Internet MP3 Download… Video Streaming … Push-to- Talk VoIP Real-time Video … Cellular Voice SMS GPRS … HLR Authentication & Billing System Internet (ISP) Cellular Operator Cellular/WLAN Common Services Cellular Services WLAN Services WLAN BS AP BS AP Roaming Taiwan’s iB3G Dual-Network Project (3) Mobile Devices/Key SoC for Combo(WLAN/Cellular) Handset

通訊產業發展推動小組 40 iB3G Promotion Strategies  Establish a world-leading dual-network environment and industry Break the OEM/ODM-centered mindset and move Taiwanese manufacturing industry up the technology value chain Build up a comprehensive ecosystem to encourage the industry to invest  Develop core technologies & components through MOEA R&D programs, and to enhance industrial impact  Promote cross-industry collaboration among handset manufacturers and service/content providers Share responsibility and task by government, industry, research institutes and academia

通訊產業發展推動小組 41 Establish a World-leading Dual-Network Environment and Industry  Assist handset manufacturers to develop dual-mode handsets  Promote the innovative services to assist ICPs/ISPs by providing copyright protection to facilitate the development of the mobile service and digital content industry for the benefit of citizens and mobile data communication industry growth.  Coordinate the mobile operators to provide the SIM-based authentication for the payment mechanism  Drive fixed network, ISP, and PWLAN to form the WLAN aggregators  Plan and facilitate the service trial to verify the business models and all kinds of technologies and applications

通訊產業發展推動小組 42 Develop Core Tech. & Components Leverage ‘MOEA Projects’ (NTP, NSoC … ) Dual Mode handset; SIM-Based AAA (Authentication, Authoring, & Accounting) Low Power Technology (Application-aware power management, low power WLAN chipset Linux-based embedded OS, embedded processor, on-line game engine Security/privacy and human interfaces, etc. Integrate resources from both the government agencies and the private sectors Industry: Integrate the vertical supply chain to provide products & services Government: Link up the efforts of all major government technology development projects (M-Taiwan, e-Taiwan, MOEA S&T programs,etc.) Academia: Cultivate talents and conduct forward-looking research Research institutes (ITRI, III) :Develop innovative technology and applications NTP: National Telecom Project, NSoC:National System on Chip Project

通訊產業發展推動小組 43 Industry Promotion & Partners Dual-mode handset development: –Dopod, BenQ, Mitac, ASUS, etc. Telecommunication operators –CHT, Taiwan Cellular, FarEastone Innovative applications: – MP3 download with DRM, video surveillance, on-line game, video phone

通訊產業發展推動小組 44 Design/IP/SoCKnowledge-servicesManufacture From a Follower to a Forerunner High Market share High Margin High Add-on Value WiMax 3G Smart Phone PDA WLAN STB UWB Zigbee Handset SoC IP Patents Libraries 3G Chip B3G Software ASIC Contents Services Applications Content SoMLC

通訊產業發展推動小組 45 Conclusion Well-known for a leading WLAN industry, Taiwan has strengthened world presence through elevation from WLAN system products to chip design. The government has deployed, and will continue to expand, PWLAN around the island and launched initiatives such as M-Taiwan and iB3G Dual Network with both technology R&D and promotion strategies for novel application services. Having successfully established its stronghold in global ICT supply chain, Taiwan is extending its efforts to creative service offering and solution provisioning. Expect to export success models to international market.

通訊產業發展推動小組 46 Thank You

47 Appendix

通訊產業發展推動小組 48 NO.1 Notebook PC : US$ 16,809M (67%),25M units (67%) Mother Board : US$ 6,374M (79%) LCD Monitor : US$ 9,971M (65%) CD-RW: 35M units (56%) CD-R Disk : 6,236M Pcs (69%) CD-RW Disk : 228M Pcs (84%) DVD-R Disk : 518M Pcs (75%) DVD-RW Disc :73M Pcs (62%) NO.1 Hub : 30.8M units (93%), US$ 78.9M (95%) Wireless LAN : 45.99M sets (91%), US$ 1,461M (65%) NIC : 31.99M Units (91%), US$ 153M (35%) SoHo Router : 13.5M units (73%), US$ 753.6M (57%) ADSL Modem : 15.7M Sets (65%), US$ 658M (37%) Analog Modem : 23.3M Sets (65%), US$ 266M 52%) Cable Modem : 6.2M Sets (53%), US$ 290M (41%) LAN Switch : 71.7M Ports (43%), US$ 588.9M (12%) Networking Products Note:Figures for year 2003, some excluding overseas production, source IEK/ITRI, MIC/III (2004/1) NO.2 Digital Camera : 1,957K sets (38%) Large TFT-LCD : US$7,589M (35%) LED: US$982M (21%) CD-ROM: 32M Sets (47%) DVD-ROM: 15.6M Sets (40%) DVD Recorder(2004 F): 3M Sets (25%) Computer & Digital Consumer Devices NO.1 Foundry : US$ 8,983M (70.8%) Mask ROM : US$ 271M (89.7%) IC Packaging : US$ 3,419M (36%) NO.2 IC Design : US$ 5,529M (28.7%) NO.3 DRAM : US$ 3,192M (19.1%) Semiconductor 1US=34.5NT World Presence of Taiwan’s ICT Industry

通訊產業發展推動小組 49 Comm. Equipment Industry in Taiwan(1) Wire- less( ％ ) Wired ( ％ ) B 422.9B 208.1B Unit: NT$100M Figures in red :Wireless Industry in Taiwan Including overseas production value Source: ITRI/IEK,

通訊產業發展推動小組 50 WLAN Products Shipment in 3Q 2004 Source: :ITRI/EK(2004/09) (include domestic & overseas production), IEK,2004/9 K pcs NT100M