Price competition in Taiwan's mobile telecom service market is expected to ease shortly as the prevailing low rates for unlimited 4G services have significantly cut into the profits of local mobile telecom operators, according to James Jeng, president of Taiwan Mobile.
Most mobile telecom operators have been focusing on promotion of packaged service deals with high rates in the second quarter, Jeng indicated.
Taiwan Mobile expects its revenues to stay flat or decline slightly in 2017 due to keen competition and a decline in the number of mobile service subscribers, Jeng noted.
The number of mobile service subscribers at Taiwan Mobile decreased 0.7% on year in the first quarter, Jeng revealed. Meanwhile, revenues generated from its mobile telecom services shrank 2% to NT$16.02 billion (US$531.66 million) in the quarter.
In 2017, Taiwan Mobile will also focus on promoting its MOMO online shopping platform in overseas markets, including China, Thailand and Malaysia, Jeng said.
Taiwan Mobile has decided to distribute a cash dividend of NT$5.60 for 2016 based on an EPS of NT$5.63 recorded in the year.
Taiwan Mobile president James Jeng
Photo: Fu Shih-min, Digitimes, may 2017
Article translated by Steve Shen
