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Taiwan Telecoms Industry Report 2021-2026: Telco Operators Profile, Revenue And EBITDA Mix

DUBLIN, Dec. 22, 2021 /PRNewswire/ -- The "Taiwan Telecoms Industry Report: 2021-2026" report has been added to ResearchAndMarkets.
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DUBLIN, Dec. 22, 2021 /PRNewswire/ -- The "Taiwan Telecoms Industry Report: 2021-2026" report has been added to ResearchAndMarkets.com's offering.

Globally, the telecommunications sector is proving to be a core and essential infrastructure service to national economies, with data infrastructure becoming critical in a connected world and will likely increasingly attract a new class of investors such as large infrastructure funds. The Taiwanese telecommunications industry is forecast to remain steady thanks to the defensiveness nature of the industry, amid the political uncertainties and an uncertain economic outlook due to the COVID-19 pandemic.

With already a saturated mobile phone penetration and fixed broadband take-up among households, future growth is likely to remain subdued with a declining working population and an aging population over the long term.

The research forecasts that mobile subscriptions will continue to grow in the 2021-26 period and fixed broadband subscribers will also continue to grow but lower its household penetration over the same period due to fixed-wireless substitution. The ratio of the telecommunications sector revenue to GDP is declining from a peak in 2015, sliding down every year since then.

Following the market contraction over the last 5 years, the research team forecasts flat revenue growth to 2026, as long as data pricing stays rational amid the diminishing impact of declining legacy voice and SMS revenue.

Mobile subscriptions are growing faster than mobile service revenue leading to ARPU decline after 3 years of intense competition with the market transitioned completely transitioned to 4G after shutting down 2G and 3G networks in 2017 and 2019 respectively.

The overall telecoms market is expected to remain flat through to 2025 after a marked decline from 2016 due to mobile service revenue pressure partially offset by fixed broadband and enterprise data growth

This report provides analyses of revenue and market forecasts as well as statistics of the Taiwanese telecoms industry including market sizing, 5-year forecasts, market insights, key telecom trends, 5G.

The report features the following:

  • Overall Telecommunications Market by Major Operators
  • Telco Operators Profile, Revenue and EBITDA Mix
  • Mobile Subscribers & Revenue Market Overview and Forecasts
  • Spectrum Holdings
  • IoT Market Overview
  • Broadband Subscribers & Revenue Market Overview and Forecasts
  • National Broadband Network Detailed Market Overview and Forecasts
  • Thematics/Opportunities relating to 5G, M&A and e-Commerce
  • Telecoms Infrastructure Review
  • Telco M&A Transaction Database

Capex Investments

The Capex to GDP ratio peaked in 2014 and has been sliding since, to its lowest in 2019 and rising again in 2020. Capex investments will increase again from 2021 through to 2026, as mobile operators invest in 5G, bolster their 4G coverage and increase capacity to fulfill strong data demand, increasing again Capex to Sales Ratio.

Broadband Subscribers - FTTH Push and Fixed Wireless

The fixed broadband market is experiencing subdued growth with Chunghwa Telecom losing share to HFC cable operators such as KBro, Taiwan Mobile, TBC and CNS. Chunghwa Telecom invested early in the 2010s in FTTx technologies while migrating its DSL subscribers to its HiNet network. Competing cable operators also invested in upgrading their cable networks bundling mobile, IPTV and e-Commerce services but falling short of upgrading to full-fibre networks limiting opportunities for gigabit speeds.

Fixed broadband penetration is forecasted to decline as fixed-wireless substitution is increasing supporting a rising number of lone-occupancy households.

Thematics - Telecoms Infrastructure / 5G / M&A / Infrastructure

Infrastructure funds, pension funds and government funds are assigning high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centres, submarine cable and fibre infrastructure.

Investment funds are assigning high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centres, submarine cable and fibre infrastructure. This report outlines some real market examples of how investors view and value these investments with real industry examples and EV/EBITDA comparatives and benchmarks.

However, in the medium term, the telco sector is likely to experience some corporate activity. Subdued growth due to ARPU pressure compounded by low population growth is pushing telcos to look for outside opportunities to increase scale. The research team expects a wave of consolidation in Taiwan in both the mobile and fixed broadband market, after some failed mergers of cable operators.

The arrival of 4G moved the Internet off our desktops into our palms and pockets, 5G could transform the network from something we carry around to something taking us around either virtually (augmented reality or virtual reality) or in reality (autonomous vehicles), the 5G outcome and benefits beyond fast connectivity remain largely unknown in terms of business models, investments required and timeline.

Key Companies Mentioned in This Report:

  • Asia Pacific Telecom (APT)
  • China Network Systems (CNS)
  • Chunghwa Telecom
  • Far EasTone
  • KBro
  • National Communications Commission (NCC)
  • Taiwan Broadband Communications (TBC)
  • Taiwan Mobile
  • Taiwan Star (T Star)

For more information about this report visit https://www.researchandmarkets.com/r/2kzbmn

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