Taiwan’s regulator warns a 4G price war could impair 5G investment

A telecoms regulator in Taiwan has warned sparking a price war could impair how much operators are willing to invest in new services and networks, including 5G.

The warning from the NCC (National Communications Commission) followed Chunghwa Telecom’s decision to introduce low-cost, unlimited 4G data and voice plans. Chunghwa is Taiwan’s largest service provider — accounting for over a third of wireless connections and around 80 percent of the broadband market.

A race to the bottom in prices will initially be welcomed by consumers until the nation falls behind in connectivity and access to services.

NCC spokesperson Wong Po-Tsung (翁柏宗) said:

“If telecoms simply want to boost their market shares and revenue by luring subscribers from competitors, rather than with innovative business models, it would not be positive for the development of 5G in the nation.

What they are doing does not help to make the pie bigger. They are not benefiting from innovative business models that could sustain them through the maintenance and operation of 4G services, the auctioning of the 5G service spectrum and finally commercial operation of 5G.”

Following the price drop, Chunghwa’s rivals Taiwan Mobile, Far EasTone Telecommunications, and Asia Pacific Telecom quickly followed.

Do you agree with the NCC’s concerns? Let us know in the comments.

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