PRICING:Taiwan Mobile and Far EasTone expect flat rates for unlimited 4G data plans to increase later this year, as telecom operators struggle to stay profitable
Date: May 05, 2017
By: Lisa Wang / Staff reporter
Taiwan Mobile Co (台灣大哥大) expects pricing competition to ease in the fourth quarter of this year as low-rate plans for unlimited 4G data transmission have significantly cut into the profits of telecom operators, a company executive said yesterday.
Telecom operators are struggling to stay profitable as stiff competition has delayed the exit of NT$699 per month unlimited 4G data plans, as well as the scrapping of flat data transmission rates as a whole.
“Lower [flat] rates have affected the company’s ARPU [average revenue per user], but I believe the rationalization of competition should start to happen three quarters” later, Taiwan Mobile president James Jeng (鄭俊卿) told investors in a teleconference.
“In my personal view, the three big ones [telecoms] are facing pressure in terms of profitability … although the fixed data rates will not change in the short term,” Jeng said, referring to the company, Chunghwa Telecom Co (中華電信) and Far EasTone Telecommunications Co (遠傳電信). [FULL STORY]