MOEA urges cross-strait 5G network collaboration
By Ted Chen,The China PostTAIPEI, Taiwan -- The Ministry of Economic Affairs (MOEA) yesterday highlighted the need for cross-strait collaboration in initiating collaborative endeavors for the strategic development of Taiwan's upcoming fifth generation (5G) mobile network.
October 22, 2013, 12:06 am TWN
Industries on both sides of the strait would benefit tremendously from the establishment of compatible standards in planning, development, operation, and management of upcoming 5G networks, said MOEA Deputy Minister Tu Tzu-chun (杜紫軍) at a telecoms forum in Tamsui yesterday.
According to Tu, if a set of shared strategic objectives is devised by and for industries on both sides of the strait, Taiwan and China will be well-placed to play a deciding role in establishing worldwide telecoms standards.
With full implementation expected by 2020, potential 5G-related revenues are anticipated to exceed US$61 billion, said Tu. He added that based on the predicted growth trajectory of current 4G network developments, 5G revenues are expected to grow fivefold by 2025, reaching US$300 billion.
In terms of cross-strait collaborations, the era of 5G will be when revenues and growth prospects shine, following the foundations established in the 3G era and the trials and lessons of the current 4G era, said Tu.
Meanwhile, amid growing concerns over a rampant surge in operational license bids, shares of telecoms companies weakened during yesterday's trading session. Taiwan Mobile (台灣大哥大) saw the most severe drop, receding to NT$89.8 per share, a decline of over 5 percent and a one-year low. Foreign institutional investors had over the past three trading sessions dumped about 14 million shares of the company, propelling a 10-percent decline in share prices over the past month.
According to reports, institutional investors foreign and domestic also dumped over 30 million shares of Far EasTone (遠傳) over the past three trading sessions, causing a 12-percent decline in share prices over the past month. Chunghua Telecom (中華電信) exhibited strong resilience, losing 1.3 percent while rebounding from an intra-day low of NT$92 per share, closing at NT$92.4.
Institutional investors yesterday said that the anomalous escalation of bids on highly contested and prized bandwidth spectrum is poised to erode the profitability of 4G networks, adding that Taiwan's telecoms sector will be in a holding pattern until bidding concludes at the end of November.