GSMA wants Taiwan to change 2.6 GHz license conditions for LTE growth

Mobile industry association GSMA urged the Taiwanese

government to change the license conditions for 2.6GHz spectrum, which is
restricted to WiMAX services, to allow the rapid deployment of LTE.

“HSPA and LTE are now firmly established as the
dominant mobile broadband technologies worldwide, and Taiwan must seize this
opportunity to leverage its extensive telecoms expertise to focus on the
development and export of HSPA and LTE equipment and devices globally,”
said Jaikishan Rajaraman, senior director, Asia Pacific, GSMA.

It is essential that the Taiwanese government acts
quickly to support manufacturers and allocate spectrum for LTE. This includes
releasing digital dividend spectrum in the 700MHz band in line with the rest of
Asia, enabling Taiwan to benefit from economies of scale and lower cost
equipment and devices, as well as changing the license conditions for 2.6GHz
spectrum, which is restricted to WiMAX services, to allow the rapid deployment
of LTE,” Rajaraman added.

According to GSMA, mobile broadband technologies will
contribute TWD333 billion (US$11.6 billion) to Taiwan’s economy by 2015, an
equivalent of 1.8 per cent of GDP.

This impact is derived from direct spend on mobile
services (TWD161bn), the growth of the mobile broadband ecosystem (TWD103bn)
and the productivity impact on industry (TWD69bn).

The figures come from a new study, commissioned by the
GSMA and conducted by analyst firm Analysys Mason, on the impact of mobile
broadband growth in Taiwan and across the globe.

Highlights from the report show that wireless
technologies such as HSPA, which is forecast to exceed 2.1 billion connections
globally by 2015(i), will generate TWD30.3 billion (US$1.05 billion) alone for
Taiwan’s ICT manufacturers through the rise in export of Mobile Broadband
equipment and devices.

Furthermore, the rise in domestic adoption, with HSPA
connections expected to increase from 9 million today to 19.8 million in
2015 and LTE adoption to exceed 2.5 million by 2015, will lead to a 25 per cent
annual increase in spending on Taiwanese-manufactured Mobile Broadband


Taiwan’s ICT industry will also benefit from the huge
increase in LTE adoption across the globe. With more than 300 million connections
worldwide expected by 2015, revenues generated by LTE are expected to quickly
surpass those of Taiwan’s WiMAX technology sector.


According to Analysys Mason, HSPA and LTE will generate
TWD27.3 billion (US$934 million) for Taiwan’s economy by 2015, compared to TWD3
billion (US$100 million) for WiMAX.

The growth of mobile broadband in Taiwan will largely be
driven by a rise in smartphone penetration. 3G handsets are experiencing
exponential growth as operators have rolled out extensive networks and the
device ecosystem has developed.

In Q1 2011, 44 percent of total handset sales were
smartphones, an annual increase of 150 percent, and it is likely that increases
in wireless broadband penetration will be driven by consumers starting to use
smartphone features. Additionally, shipments of app-enabled smartphones and
tablets worldwide are expected to reach 377 million in 2011 and 462 million in
2012, overtaking traditional PCs.

However, it is not only manufacturers that will benefit
from the uptake of HSPA and LTE. By 2015 mobile broadband will generate an
increase of TWD42.8 billion (US$1.5 billion) in the consumer and retail sectors
through more vibrant online commerce, entertainment and advertising, TWD17.4
billion (US$605 million) in social and government services with mHealth being a
key driver, and TWD12.6 billion (US$438 million) across the broader corporate


By Team
[email protected]