Taiwan’s three major mobile operators – Chunghwa Telecom, Taiwan Mobile and Far EasTone Telecommunications – are likely to see larger declines in ARPU in the second half of the year as the companies show little interest in backing away from low-cost, unlimited tariff plans, Taipei Times reported.
In a research note, KGI Securities Investment Advisory Company analysts Victor Tseng and Jim Liou forecast ARPU for the three operators to decline by 5 per cent to 10 per cent in the July-December period after slipping by between 1 per cent and 5 per cent year-on-year in the first half of the year.
KGI said average ARPU in June fell 8 per cent to 8.5 per cent.
Chunghwa Telecom introduced unlimited 4G data and voice plans in April. Rivals Taiwan Mobile, Far EasTone and Asia Pacific Telecom quickly followed.
The National Communications Commission warned at the time the 4G price war could impair mobile operators’ ability to invest in and develop new services, including 5G networks and applications, needed to sustain the long-term development of the telecoms industry.
All three operators recently reported year-on-year declines in net profit and mobile service revenue in Q2.
The newspaper noted the business income tax rate rose from 17 per cent to 20 per cent.