1. 1 By Dr. Ying-jeou Ma Mayor of Taipei 2006/06/30 Taipei Experience: The M-Taipei Initiative

2. 2 Comments about Wireless Taipei from World Opinion Leaders On August 18, 2005, Intel selected Taipei as one of its four pilot communities for municipal wireless service improvement. On January 19, 2006, the Wall Street Journal reported,, that Taipei is the first municipality in the world offering citywide Wi-Fi access. On June 9, 2006, Taipei City bested the other six finalist cities to win the Intelligent Community Awards 2006 given by the Intelligent Community Forum (ICF). Taipei’s success was mainly attributed to its wireless broadband infrastructure development and thorough promotion of e-living.

3. 3 Highlights of the M-Taipei Initiative 1.Largest-ever city-wide Wi-Fi network (roughly 134 square km covered) by 2006, with planned WiMAX service 2.A 9-year franchise Build & Operate (BO) approach

4. 4 Coverage of Wireless Taipei DurationCoverageCity Population APs The Phase I 2004/9/7 ︱ 2005/1/31 30 subway stations. 5 underground shopping streets. 150 m outside the subway stations. 20% (520,000 people) 502 The Phase II 2005/2/1 ︱ 2005/11/31 All remaining subway stations (a total of 63 stations). Downtown area (about 28.2 km², one-tenth of the city). 50% (1.3 million people) 2,020 The Phase III 2006/1/5 ︱ 2006/7/31 An enlarged downtown area (134 km²) 90% (2.32 million people) About 4,000

5. 5 Wireless APs in Taipei On the major roads…

6. 6 Wireless APs in Taipei On the flyovers… Above the traffic lights…

7. 7 Tariff Structure on WIFLY Services –Pre-paid Card NT$ 100 (about US$3) / one day (24hr) NT$ 500 (about US$15.2) / one month Available at Starbucks and in 7-11 stores –Monthly Payment NT$ 399 (about US$12.1)/ per month Payable in person, at ATMs, by Easy Card, & at 7-11 Convenience Stores –Student Special Offer (now until 10/31/2006) NT$ 299 (about US$9) / per month –Pre-paid by min (beginning in Sep. 2006) NT$ 300 (about US$9) / 360min NT$ 600 (about US$18) / 780min NT$ 800 (about US$24) / 1600min –Single Added Service (beginning in Jul. 2006) Limited up to NT$ 199 (about US$6) / per month Ex: Taipei Easy Call: NT$ 99 (about US$3) / per month

8. 8 WIFLY Subscribers (1) ※ in Total, 30,904 people have registered for WIFlY service (as of a 06/22/2006 Survey)

9. 9 WIFLY Subscriber Analysis (2) (06/22/2006 Survey)

10. 10 Examples of Commercial Application Services LBS/ VoIP/ VoWLAN/ Wireless Skype/ IPTV I talked with Niklas Zennstrom by skype via WIFLY in a Taipei MRT station on February 2005. P.Walker Service: You can download movies, MP3s, and games on Sony’s PSP via WIFLY.

11. 11 The Government’s Role in M-Taipei Infrastructure builder: cooperating with a private partner, Q-ware, to facilitate construction Public service provider: developing public services to provide over the WLAN network Policy communicator: raising public awareness of the M-Taipei vision

12. 12 Public Application Services Taipei e-bus – announced on May 16, 2005 Wireless campus – announced on June 3, 2005 M-medicine – announced on June 24, 2005 Culture express – announced on October 11, 2005 Advanced ITS – announced on April 4, 2006 M-ambulance – announced on April 17, 2006 To be announced soon : E-environmental inspection system Campus VoIP system

13. 13 Intelligent Transportation System (ITS) Searching citywide transportation information (parking/ e-bus/ e-taxi/ speed limits…) by PDA or notebook computer over WLAN. (http://its.taipei.gov.tw)

14. 14 Wireless Campus 1.A total 10,070 APs spread among 240 public elementary and high schools. 2.Providing RFID Students Security System/ Campus VoIP/ M-learning over WLAN.

15. 15 M-medicine 1.A Doctor can offer remote treatment over WLAN when he is on the road. 2. Wi-Fi enabled ambulances

16. 16 Culture Express PDA access to cultural information and event news around Taipei. (http://express.culture.gov.tw)

17. 17 Welcome to Taipei. Enjoy wireless communication with us! Thank you !

18. 18 Summary Niches to develop a wireless broadband network in Taipei Past efforts to build an information city Vision & features of the “M-Taipei Initiative” Keys to & application services in implementing the “M-Taipei Initiative”

19. 19 Why Taipei? The Opportunities Optimum size and density Population density average 9,663 persons per square kilometer (a total of 2.62 million in 272 km²) High cellphone ownership rate Taiwan reached a 95% penetration rate of mobile phone service, second only to Hong Kong in the whole of Asia. Mature social conditions Taiwan is the primary manufacturer and exporter of Wi-Fi products (market share is about 90% of the world’s & output value is more than US$ 17 billion). Taiwan is one of the world’s three major IT production bases. Taipei is well-know for fast IT development. PC usage penetration rate: 88%. Facts of Broadband Communications (Sep. 2005 Survey) Households / connected to broadband: 79.3% Internet penetration rate: 83.6% Individual / Wireless usage:31.8% Wireless campus coverage rate: 100% in 280 schools

20. 20 Why Taipei? The Preparedness One-stop service window 1.1,772 cases/day 2. 27,992.7 click-throughs/ day 3. Cost of saving: 223,710,271 dollars 4. 533 service items total: 69 fully online; 276 partially online e-Document system 1. 84% of government document interchanges are processed on the system. 2. 400,000 – 500,000 transactions per month e-TrainingFree 3-hour on-line training course: more than 330,000 citizens have attended EasyCard1. Multi-functional and value-added transport ID 2. Seven million EasyCards issued to date 3. Used on the MRT subway system, in buses and taxis, for public parking fees, and in self- service libraries 4. Inscribed in consumer products such as mobile handsets, MP3 players, and wristwatches

21. 21 Taipei Wireless Broadband Task Force Dr. Pu-Tsung King Deputy Mayor of Taipei Task Force (led by Deputy Mayor; coordinates collaboration among various departments and agencies; takes charge of RDEC.) Marketing Team Finance & Law Team Administration Team Construction Team Application Service Team

22. 22 Chronicle of the M-Taipei Initiative 2004 –02/11 The Taipei City Government announced the M-Taipei Initiative. –05/20 The Taipei City Government signed a contract with Hewlett-Packard Co. (HP) for its consultation. –09/07 Q-ware Co., an affiliate of the Uni group, was tapped to build the network, and given a nine year franchise. –09/08 Q-ware Co. and the Taipei City Government co-launched the Phase I of network construction. 2005 –01/05 the Phase I construction completed. –02/01 Q-ware created WIFLY brand for the WLAN network and granted free public access. –02/01 the Phase II construction began. –11/21 the Phase II construction completed. –12/20 Q-ware Co. and the Taipei City Government co-announced that Taipei was the world’s largest Wi-Fi zone. –12/22 the Wireless Broadband Oversight Committee ratified the tariffs on WIFLY services. 2006 –01/05 the Phase III construction was began. –01/16 Q-ware Co. began collecting low tariffs for public use of WIFLY service. ＊ For details on WIFLY services, please check www.wifly.com.tw

23. 23 Key Factors in Success (1) Public-Private Partnership 1. The City Government is determined to mitigate the business and technological risks in the early stages of network development.  risk-pooling 2. The public-private partnership, therefore, insures the private firm from operation uncertainty, while retaining flexibility and efficiency in growing the market. 3. The Taipei City Government granted Q-ware Co. the right to install APs in or on all city-owned public facilities, including highways, bridges, underground tunnels, street lamps, traffic lights, schools and so on.

24. 24 Key Factors in Success (2) Network Effects:  Bundling other network goods to share network effects is the strategy. 1.With Telecom operators: (1) SoNet, SeedNet (WISP + ISP) (2) FET (Wi-Fi + GSM + 3G) 2.With Non-telecom enterprises (brick-&-mortal channel): (1) Sided with 826 7-11 convenience stores and 71 Starbucks, part of Q- ware’s parent company, the Uni group. (2) SONY Location Free bundle  Outdoor Location Free TV service (3) SONY P.Walker  PSP M-Service (download MP3, films, game news) (4) 7-11 MMK  MMK(Multi Media Kiosk) PDA Portal (5) Every8D  cellphone message to NB/ PDA’s outlook system (6) RealMa  Game download & on-line Radio (7) Orb  On-line Cable TV

25. 25 Key Factors in Success (3) Downstream market (devices & content):  Developing killer devices and application services is the strategy. 1. Cooperating with the TCA (Taipei Computer Association) to set up Wireless Broadband Promotion Association  to form the platform in which vendors/ manufacturers can match the operator’s needs. 2. Organizing an industrial alliance: to co-promote Taipei Easy Call (1)Joint Plan 1: Integrating government / campus VoIP system. (2)Joint Plan 2: Integrating all ITSP / VoIP Makers & System Integration. (3)Joint Plan 3: Skype / SIP Interoperability. (4)Establishing Wi-Fi phone protocol. (5)Based on 180,000 Skype paying users in Taipei  estimate of about 20,000 subscribers by the end of 2006.