along withiPhone 17 series and iPhone Air are officially on saleChunghwa Telecom, Far EasTone Telecommunications, and Taiwan Mobile also explained how the new Apple phone is driving sales momentum and the current changes in Taiwan's 5G network usage trends. They are also optimistic that the iPhone Air, which adopts a full eSIM design, will further drive the proportion of eSIM usage.
Opinions on the development of the 5G network environment in the Taiwanese market
In response to recent criticism from legislator Lin Junxian that Taiwan's telecom operators officially launched 5G mobile network services at the end of June 2020, but subsequent tariffs remained high, coupled with poor network reception quality, which contributed to less than 40% of 5G mobile network usage, far lower than neighboring Asian countries and regions. The National Communications Commission (NCC) subsequently stated that it would urge telecom operators to propose relevant price reduction plans. In response, Chunghwa Telecom Chairman Jian Zhicheng believed that the design of the tariff plan was open to discussion, but emphasized that the key to the penetration rate of 4G network to 5G network services lies not in the tariff, but in the lack of actual application scenarios.
Chien Chih-cheng stated that Chunghwa Telecom currently offers a NT$599 monthly plan with 24GB of data, and that overages can maintain a 12Mbps speed. Meanwhile, according to Chunghwa Telecom statistics, 7-8% of its users use less than 24GB of data per month. Therefore, he believes that attracting users with low-cost all-you-can-eat plans is not the best approach. In particular, the previous NT$499 all-you-can-eat plan wasted telecom resources to a certain extent, even leading to abuse by some users, impacting the internet access rights of others and hindering the future development of the telecom operator.
In addition, Jian Zhicheng also explained that compared with the 5G network charges in neighboring Asian countries, Taiwan’s current main 5G unlimited Internet access plan is NT$1399 per month, but the monthly fee for the same plan in South Korea and Japan is more than NT$1800.
Far EasTone Telecommunications General Manager Jing Qi, citing his own years of experience working at AT&T in the United States, emphasized that compared to mainstream telecom rates in Europe and the United States, telecom rates in the Taiwan market are relatively much cheaper. He also believes that offering all-you-can-eat plans is not the best way to attract users. He further emphasized that it is more important to meet the needs of different users with appropriate rates. Otherwise, they will fall into the dilemma of "how much to eat" and "how to eat enough."
At the same time, Jing Qi also explained that the current 5G network technology is built on the existing 4G network architecture, and therefore will gradually transition from the existing non-independent networking type to the independent networking type. Therefore, it is believed that the current 5G network usage penetration rate is not high, mainly because it is still in a transitional period. Once there are more suitable usage scenarios and the network architecture is gradually upgraded, it will help to drive a greater usage penetration rate. It is expected that the penetration rate should grow to 50% this year, and there is no need for too much special emphasis on promotion.
As for Taiwan Mobile's Chief Commercial Officer for Consumer Business, Lin Dongmin, he stated that Taiwan Mobile will not blindly pursue penetration rates, believing that 4G and 5G network users are different customer groups. He also emphasized that Taiwan Mobile's current 5G network penetration rate is close to 43%, and is also expected to reach 50% by the end of this year.
Regarding the fact that many users still continue to use 4G network services, Lin Dongmin believes that 4G network services can still meet many current usage scenarios, emphasizing that 4G network services still have their "good value for money" characteristics. At the same time, he also refuted the reports of "4G network die-hards". However, he also pointed out that 5G networks have the characteristics of high-speed transmission and high bandwidth usage. Once killer applications become widely available, it is expected to encourage more people to switch to 5G network services.
iPhone Air is expected to drive demand for eSIM usage
Regarding Apple's iPhone Air, which is now available in Taiwan and other markets, adopting a fully eSIM design, Lin Dongmin believes this is an inevitable market trend. He also sees a significant push for eSIM adoption in the US market. However, due to current Taiwanese telecommunications regulations, telecom operators are still unable to offer online applications and eSIM number changes. Applicants must still bring both IDs to a branch office to complete the application process. However, Lin Dongmin stated that they have completed adjustments to branch education and service platforms, and are offering strategies such as "free first-time eSIM changes" to attract more users to the eSIM market.
Jing Qi is also optimistic that the iPhone Air will drive demand for eSIM usage, and even stated that he had already switched to eSIM a long time ago. He also stated that he would continue to adjust the eSIM application process in stores to make more users willing to switch their original physical SIM cards to eSIM usage mode.
