1. Info-comm Infrastructure Development in Taiwan Directorate General of Telecommunications Ministry of Transportation and Communications July 2000

2. 1 Contents  Taiwan Profile  Toward a Digital World  Goals  Development Strategies  Initiatives to Develop Broadband Infrastructure  Conclusions

3. 2 Taiwan Profile  Population : 22.149 million (04/’00)  Size : 13,969 mile 2  GDP 1999 : US$288.7 billion  GDP per capita 1999 : US$13,152  Main lines : 12.262 million (05/’00) Penetration : 55.32 lines/100 pop Penetration : 55.32 lines/100 pop  Cellular phone : 14.303 million (05/’00) Penetration : 64.54 users/100 pop Penetration : 64.54 users/100 pop  CATV penetration : 80 home passed/100 hh  Internet : 5.5 million (4/’00) Penetration : 25.02 users/100 pop Penetration : 25.02 users/100 pop East China Sea Pacific Ocean

4. 3 Towards a Digital World A Digital World E-Commerce Modern Telecom Infrastructure Innovative Services Internet/Cyberspace... Pro-Competition Regulation

5. 4 Goals e-Commerce Enough Network Bandwidth Reasonable Service Prices Secure & Reliable Communication Cross-border Interconnection Modernized Network Management Good Communication Quality Information Communication Infrastructure

6. 5  Facilitate the establishment of info-comm infrastructure by the fulfillment of telecom liberalization.  Promote innovation and new services through competition  Open and promote access points to the public  Encourage favorable local service tariff for Internet services (i.e., special dialing number)  Enforce cost-based tariffing in leased lines Development Strategies

7. 6 Initiatives to Develop Broadband Infrastructure  Telecom Liberalization  Broadband Network Development

8. 7 Telecom Liberalization  Market Liberalization  Market Competition in Taiwan  The Growth of Fixed-line Services  The Growth of Cellular Phone Services  The Growth of Internet Users

9. 8 Market Liberalization (1/2) All sectors now open to competition  1995.06 : Mobile Communication Services - CT2: 9 licenses issued CT2: 9 licenses issued  1997: Mobile Communication Services 1997.01: Cellular Phone : 8 licenses 1997.02: Radio Paging : 8 licenses 1997.03: Mobile Data : 8 licenses 1997.05: Trunked Radio : 20 licenses  1998.12 : Satellite Communication Services (FSS & MSS):16 licenses (FSS & MSS):16 licenses

10. 9 Market Liberalization (2/2)  1999.06 : Domestic Leased Circuit Services Permit public utilities to provide Leased Circuit Services Permit public utilities to provide Leased Circuit Services Permit CATV operator to provide telecom services Permit CATV operator to provide telecom services  1999.11 : 1900 MHz Low Tier Mobile Phone Service: 2 licenses Service: 2 licenses  2000.03 : Fixed Network Services: 3 licenses Future Planning  2000.08 : International Submarine Cable Landing Landing  2001.Q3: 3G Mobile Communications Services

11. 10 Market Competition in Taiwan The Number of Licenses issued as of July 2000

12. 11 The Growth of Fixed-line Services Penetration (%) Subscribers (000)

13. 12 The Growth of Cellular Phone Subscribers (000)Penetration (%)

14. 13 The Growth of Internet Users Users (000) Penetration (%)

15. 14 Broadband Network Development  Broadband Access Networks  Broadband Network Access in Taiwan  CHT’s Major Achievements in Network Modernisation  Broadband Internet Access Network  Broadband Network Deployments of the New Entrants  CATV - An Available Alternative for Broadband

16. 15 Broadband Access Networks T/R xDSL Modem Cable Modem ONU xDSL Fiber Cable TV LMDS Satellite ONU: Optical Network Unit 3G mobile  Liberalization is accelerating the pace of the Broadband Access deployment Broadband Backbone Network

17. 16  xDSL: CHT: ADSL ( 1.5M/8M), G.Lite (1.5 Mbps), IDSL (64/128K) CHT: ADSL ( 1.5M/8M), G.Lite (1.5 Mbps), IDSL (64/128K) ADSL networks have been actively constructed since 1999. Coverage of end-office with ADSL technology has reached 87%, and planed to reach 100% by the end of 2000. To date, there are about 13,000 subscribers.  Cable Modem: 2 major CATV consortiums: 2 major CATV consortiums: –Eastern Broadband: ET Community (75,000~100,000 Sub/the end of year) –Mega Media: Giga Super Network (100,000 subscribers in the end of year)  Wireless Internet: CHT, TCC, FET, KGT, Mobitai, TransAsia CHT, TCC, FET, KGT, Mobitai, TransAsia 2.5G mobile system: GPRS, 100Kbps (3Q/2000 in service) 2.5G mobile system: GPRS, 100Kbps (3Q/2000 in service)  DirecPC: Era net, CHT Era net, CHT Maximum 400Kbps Maximum 400Kbps Broadband Network Access in Taiwan

18. 17 CHT’s Major Achievements in Network Modernisation (1)  Network opticalisation  PSTN digitalisation Source: CHT, Apr. 2000

19. 18 CHT’s Major Achievements in Network Modernisation (2)  Broadband network deployment 19 units of ATM switch has been deployed since 1998, 76 more will be deployed by the end of 2000 SDH networks have been rolled out in the toll and local inter-office trunk networks since 1999  Int’l interconnections connect to 69 countries/areas and 90 operators with total capacity of 28,525 voice circuits (64K/circuit)

20. 19 Broadband Internet Access Network  Broadband To Home Project ( by CHT) G.Lite ADSL IDSL 1.5M/6M 1.5M 64/128K ISDN 64/128K High Speed Broadband Access Network ATM PSTN/ISDN Internet (Hi & elementary School)

21. 20 Broadband Network Deployments of the New Entrants  Adopt high technologies and flexible platform techniques to deploy integrated broadband info-comm networks.  Construct high-capacity fiber networks to offer high- speed multimedia-type transmission.  Utilize the Internet protocol (TCP/IP) to carry voice, data and diversified value-added services over the same network.  Broadband local access networks: FTTX (Fiber to the Building, Fiber to the Curb) FTTX (Fiber to the Building, Fiber to the Curb) HFC (Hybrid Fiber Coaxial) HFC (Hybrid Fiber Coaxial) LMDS (Land Multi-point Distribution Services, Wireless) LMDS (Land Multi-point Distribution Services, Wireless) ADSL (Asymmetric Digital Subscriber Loop) ADSL (Asymmetric Digital Subscriber Loop)

22. 21 CATV - An Available Alternative for Broadband   provide CATV, voice telephony & data communications services Fiber Node Coaxial Cable Fiber Node Central office /Headend Fiber-optic Cable Hybrid Fiber-Coaxial System PSTN

23. 22 Conclusions  E-Commerce development relies on a perfect and well- developed info-comm infrastructure.  To cater for the diversified and multimedia communication needs in the information society of the 21 century, we must encourage private telecom companies to construct modernized, broadband, ubiguitous networks.  Liberalization and Competition will continue to provide conducive environment for investment.  Based on greater competition and liberalization, we will ensure that Taiwan will be broadband ready becoming a network-based information society for becoming a network-based information society

24. Thank you