A Study on Competitive Advantage for Mobile Phone Operators in Taiwan　1

A Study on Competitive Advantage for

Mobile Phone Operators in Taiwan
行動電話系統服務商競爭優勢之研究

謝文雀　Wen-Chueh Hsieh
東吳大學國際貿易系
游蓓怡　Pei-I Yu
國立高雄第一科技大學行銷與流通管理系
胡同來　Tung-Lai Hu
國立台北科技大學工業工程與管理系

ABSTRACT

With the liberalization of GSM telecommunication, cellular operators are facing more and more
challenge. Because of similar mobile voice and data services, it’s important to be differentiated by the
competitive advantages resulted from marketing strategies. The purpose of this study is to analyze the
competitive advantage of Taiwanese GSM operators at current stages and their survival in the future
competition. In addition to reviewing secondary data, five licensed cellular operators are interviewed
and ten propositions are constructed for further empirical study. The conclusions are: Firstly, the key
factors to success for Taiwan Mobile communication industry are brand image, call quality, innovated
services, price and sales channel. Secondly, the nature of the telecommunication service is the
continuous upgrade of technology. Finally, convergence of the technology such as fixed line
communication, multimedia access, satellite, cable TV and so on also plays an important role in
operators’ decision. However, 3G (Third Generation) mobile licenses award is the immediate battle for
GSM operators.
Keywords: marketing strategy, cellular phone operator, competitive advantage
投稿受理時間: 92 年 10 月 15 日 審查通過時間: 93 年 1 月 8 日

365
2　臺北科技大學學報第三十七之一期

摘要

本研究探討當前台灣 GSM 行動電話系統服務商創造競爭優勢之行銷策略。對於行動電話系

統服務商而言，由於各系統商所提供的服務同質性高，因此藉由行銷策略提供差異化服務，以
提升競爭優勢是很重要的。本研究為一探索性研究，針對研究問題，除廣泛收集次級資進行分
析之外，並實際與台灣地區系統服務商進行深度訪談，綜合文獻回顧及訪談結論，主要研究發
現如下：(1)台灣行動電話系統服務商主要成功因素包括品牌形象、通訊品質、創新服務、價格及
銷售通路。(2)電訊服務的本質是科技持續不斷的精進，科技將帶動此一產業發展。(3)科技的集
中化如固網、多媒體、衛星及有線電視對於系統商的決策亦扮演十分重要的角色，3G(第三代行
動電話)執照的開放對於現有的 GSM 行動電話服務商亦帶來立即的競爭與挑戰。本研究經由分
析研討後歸納六項命題，供後續實證研究深入探討。

關鍵詞：行銷策略；行動電話系統服務商；競爭優勢

I. INTRODUCTION new regulation on Telecommunication service.

This new regulation not only boosts the types
In early 1980, there was a telecom-
and quality of telecommunication service but
munication liberalization trend all over the
also stimulated the modernization of telecom-
world and the telecommunication service market
munication network and accelerated the arrival
gradually transformed from traditional mono-
of digitized information era. In 1996, the
poly to open competition. Due to natural
Ministry of Transports and Communication
monopoly and the public utilities characteristics
(MOTC) opened up the cellular service by
of telecommunications services, it was operated
awarding eight licenses to private companies. In
either by the government or by private sector
1997, two of the licenses are for operation
under monopoly as control industry. After the
throughout all of Taiwan, while the remaining
80s, with the fast development in communi-
six are restricted to certain region. Far EasTon
cation and electronic technologies, the production
Telecom and Taiwan Cellular Corp were
structure and demand pattern of telecom-
awarded with the GSM 1800 national licenses.
munication services were changed and led the
K Telecom, Tuntex Telecom, MoBiTai
industry into a liberalizing process.
Telecom, TransAsia Telecom and Far EasTone
In Taiwan, the government released the
Telecom are awarded with GSM 1800 northern

366
 A Study on Competitive Advantage for Mobile Phone Operators in Taiwan　3
regional license, GSM 1800 southern regional
license, GSM 900 central regional license, GSM
900 southern regional license and GSM 900
northern regional license accordingly. Tuntex
Telecom was merged with K Telecom in 1998.
Far EasTone acquired 5% of MoBiTai on mid-
2000. Japanese NTT DoCoMo acquired 20% of
K Telecom in November 2000. Taiwan Cellular
Corp acquired TransAsia Telecom on May 2001.
A series of local and global consolidations are
now taking place in Taiwan’s mobile industry.
Compared with United States, England,
Japan and Hong Kong, the liberalization was
relatively slow in the Taiwan. Afterwards,
Taiwanese government realized the global
liberalization trend in the telecommunication
fields. In 1987, the government announced the
phone users could have their own phone
terminals. Before that, all the phone users
leased the terminal from the government.
Taiwanese government opens Value Added
Network Service (VANS) market in 1989. Until
1996, the government determines to speed up
the privatization in the telecom market. There
are four kinds of licenses release: paging,
trunking radio, cellular phone and mobile data
transmission. This is not the end of the
government’s privatization schedule. Taiwanese
government will privatize the fixed line service,
satellite communication service and third genera-
tion mobile license (3G).
367
The mobile licenses are believed as a “cash
cow” for the business. The relationship among
the operators is not only competitive but also
complimentary. Because of the nature com-
plimentary relationship in the mobile communi-
cation area, the operators need to ally with each
other in order to provide the “one number
anywhere’s” service to the subscribers. Moreover,
the liberalization of mobile telecommunication
services speed up the revolution of the
information age and social behavior changes.
This is a brand new business. Every operator
devotes all their efforts in strategic alliance and
marketing strategies in order to obtain the
competitive advantage for the success business.
After the mobile license released in 1997, the
mobile market in Taiwan is quiet interesting and
unique. This is the motive for us to dig deeper
into this vivid mobile market in Taiwan.
The primary objective of this research is to
explore how the operators in Taiwan build up
their own competitive advantage through
strategic alliance and marketing strategies in
order to survive in the competitive market.
More specifically, the following items will be
addressed: (1)To analyze the industrial factor
trend and impact.(2)To analyze the influence of
macro environment factors (political / legal
factors, technological factors, economic factors,
social and cultural factors) on the operators'
marketing strategy and strategic alliance.(3) To
4　臺北科技大學學報第三十七之一期

analyze the influence of micro environment can develop the value chain into value
factors (suppliers, competitors, subscribers, constellation (Normann and Ramirez 1993).
substitute and threat) on the operators’ marketing What is strategic alliance? Presently, no
strategy and strategic alliance.(4)To explore how final definition of strategic alliance is among
the operators apply their marketing strategy and different authors. Porter and Fuller (1986)
strategic alliance to strengthen their competitive suggested that strategic alliance is a formal,
advantage. long-term alliance associating the business
activities among companies, but not a form of
merge. Devlin and Bleackley (1988) argue that
II. LITERATURE REVIEW
strategic alliance is a strategic option existed in
2.1 Strategic Alliance the long term strategic planning of company
In order to enter specific market, product, aiming at strategic consideration, ensure and
and technical domain or to compensate their maintain or promote the competitive edges of
own shortcomings in the value chain, strategic the company and to change competition
appliance is a fast and effective way. Tradi- positions. Magsaysay(1989) suggested that
tionally enterprises can secure an appropriate strategic alliance is Part of overall strategy of a
niche for survival through the adjustment of own company which is inspired from the basic
business scope or in the core resources; mission and direction of the company, aiming at
however, after the 80‘s, strategic alliance reaching the long term target of a business entity
became pre- vailingly among enterprises. and for establishing future competitive
Business entities with natural separation in own advantages. Aaker (2001) suggested that
specialties form a business commonwealth with strategic alliance is a kind of cooperation which
mutual benefits, such as joint research and is for promoting the advan- tages of two or more
development, technical cooperation and the companies to reach strategic target.
cooperation in products, services, promotions
and logistics (Kotler 2002). Strategic alliance 2.2 Marketing Strategy
allows the business entities with different Accompanying the changes in time, the
resources to build their own edge, also serves to marketing management concept evolves as well.
reduce the competition and to share the risks Kotler (2002) divided the progress of marketing
(Lewis 1990), it even is an important way of management into five stages: production,
creating competitive advantages (Porter 1998). It product, sales, marketing and social marketing.

368
 A Study on Competitive Advantage for Mobile Phone Operators in Taiwan　5
Most of the scholars based their marketing
strategies on the marketing combination strategy
of McCarthy (1981). McCarthy‘s Marketing
Combination Strategies includes four parts,
product strategy, price strategy, sales channel
strategy and promotion strategy, which are also
called 4Ps.
The marketing strategy of McDaniel and
Kolari (1987) is divided into product, price,
place, promotion, marketing research, new
business and others. Dickson and Ginter (1987)
divided marketing strategy into market
segregation strategy and product differentiation
strategy. Waterschoot and Bulte (1992) separated
it into basic combination and promotion
combination.
Cellular Phone Communication Industry is
a kind of service industry with different features
from manufacturing which lead to different
topics in dealing with service marketing. The
traditional 4Ps marketing mix is not appropriate
in the marketing activities in service industry
and the unique features of service industry-
intangibilities, inseparability, variability and
perishability should be taken into account.
Hence, Magrath (1986) indicated that the
marketing strategy of service industry, in
addition to traditional 4Ps, product, price, place
and communication, 3Ps, participant, equipment
and customer service management should be
considered. Product is the combination of finished
369
product and services that a company provided to
a target market. Price means the cost to
consumers who desire to obtain the product.
Distribution is the activities allowing the
products of a company to reach the target
market. Communication means the activities
involved with the communication with
consumers and convincing them to buy.
Participants are the keys in transmitting service
to subscribers. Equipment can improve the
service ability and maintain stable quality.
Customer service management is the planning
and control over the products, from pre-sale to
after-sale.
2.3 Competitive Advantage
Day and Wensly (1988) suggested that
competitive advantage comes from through
sources: one is technical and resources advantage,
the others are geographical advantage and
advantage in performance. All these advantages
are normally indicated by market share or
interest rate. However, customer’s satisfaction
and the added value of the distributors are
advantages not supposed to be neglected.
Bakos and Treacy (1986) took the intra-
organization efficiency and effectiveness as
relative competitive advantage in beating com-
petitors in same industry and in intruding new
industry.
Analyzing competitive advantage can help
6　臺北科技大學學報第三十七之一期
management to assess the competition position
of their company and to adopt specific actions to
improve. Therefore, how to create and maintain
competitive advantage is of strategic purposes.
Porter (1998) raised a concept of value chain
which is based on various value activities to
explore how an enterprise builds its competitive
advantage through all kinds of value creation.
Though the value chain could build
competitive advantage, the value chain of a
business is only a part of value system. The total
value systems also include four value chains of
suppliers, enterprise, sales channel, and
customer. Therefore, if individual enterprise
wishes to promote the value it provides, then
alliance is a means to create multi-win situation.
Hill and Jones (1998) said that an
organization could create better efficiency,
quality, innovation and flexibility to build up
competitive advantage through increasing
competitive capacity, resources and the potential
in applying resources. It means that competitive
advantage is the result of an organization
applying the possessed resources and capability.
Efficiency, quality, innovation and flexibility
may be regarded as the four building blocks or
structures of competitive advantage.
370
III. RESEARCH METHOD
3.1 Research Framework
This research starts from the overall macro
and micro environment analysis of mobile
telecommunication to understand the charac-
teristics of mobile phone industry. Next, the
survey is conducted to understand how the upper
and down stream interact within whole mobile
communication industry from the situation of
strategic alliance, how the mobile communi-
cation industry obtain resources through
strategic alliance, how the resources secured
from strategic alliance are used to build up
competitive advantage on one hand, and
transform to be the power of applying marketing
strategy on the other hand, to enhance and to
boost the competitive advantage. Figure 1 shows
the framework of the research.
Macro Environment Micro Environment
Factors Factors
Strategic Alliance Marketing Strategic
Competitive Advantage
Figure 1 Framework of Research
 A Study on Competitive Advantage for Mobile Phone Operators in Taiwan　7

3.2 Research Design interviewed, marketing strategy and situation of

This research intends to analyze the process strategic alliance. The marketing strategy

of mobile phone operators gaining competitive includes the competition capacity of the

advantages through strategic alliance and company, market positioning, products, prices,

application of marketing strategy. The research distribution, communication, participant, equipment

is conducted from two aspects: professional and customer service management. In strategic

interview and secondary data analysis. alliance, it is divided in accordance with value

The interview made for this research is in system into system operators, channel operators

the form of in-depth and open-ended interview. and the trades, plus the cooperation with foreign

The interviewees are the persons from three firms, so to find out the points considered in

private telecommunication companies who now selecting partners and the benefits received from

are managers with ample experience in the the cooperation relationship. In the meantime the

management of mobile phone communication primary data are combined with secondary data.

industry. In addition to in-depth interview of The results of interview are applied with

senior professional, the research is comple- inductive analysis. The case analysis was

mented with thoroughly sorted secondary data to adopted to make comparative analysis of the

link and to interpret the opinions of experts. difference in strategic alliance and marketing

In the secondary data collection, the papers, strategies among the operators. The analysis of

periodicals, special reports, newspaper and various operators was categorized to explore

magazine or research report related to mobile how the operators build up their competitive

communication industry are most concerning. advantage. The inductive analysis means

Besides, the documentary data of the operator emphasizing the details and features of data to

and network information are also collected in the discover the important domains, orientation and

hope to perfect the research with the most inter-relations.

sufficient data.
IV. Case Study
3.3 Data Collection and Analysis
4.1 Case 1: C Telecom
Questionnaire is used in interview. The
C Telecom has introduced mobile phone
outline of interview questionnaire is divided into
system since 1989 when it was still in the age of
three parts: the basis position of the company

371
8　臺北科技大學學報第三十七之一期
Telecommunication Bureau, in which it adopted
the North American Cellular AMPS Mobile
Phone System. At the initial stage of release, the
areas serviced are limited to 3 metropolitans,
Taipei, Taichung and Kaohsiung. With keen
demand, Telecommunication Bureau installed
digital GSM900 system in 1995 and complete
island-wide coverage in 1996. The building of
GSM 1800 Network System started in 1997, but
due to the delay in purchasing procedures, the
GSM subscription was released in October 1998
when the private operator commenced their
operations. Presently C Telecom is operating 3
different mobile phone system, AMPS, GSM
900 and GSM 1800.
4.1.1 Status of Strategic Alliance
(1) Foreign Joint Venture:
C Telecom was independent from
Telecommunication Bureau on July 1, 1996 and
under it there are 7 branches and 2 research
units, Telecommunication Laboratory and
Telecom- munication Training Institute. The
Mobile Phone Services are provided by Long
Distance and Mobile Telecom Branch. Since C
Telecom is still state-run company, there is no
foreign partner exist.
(2) System Equipment Supplier:
All purchases of C Telecom must be made
through open tender. All equipment purchases
shall be going through collection of market
information, specifying equipment specifications
372
in details for suppliers to bid and the system
supplier will be awarded per the result of open
tender. The GSM 900 and GSM 1800 are both
supplied by Nortel of Canada. Nortel is one of
the largest digital exchange network and digital
network solutions suppliers, who design solutions
for customer and for upgrading the competitive
advantage.
(3) Sales Channel:
In the past, C Telecom did not have Sales
Channel. Subscribers must apply for
subscription at the windows of Telecommuni-
cation Bureau at various locations in person.
Communication firms provided only communi-
cation products. After opening for private
participation, for providing total services of one-
stop shopping for handsets and subscription for
subscribers of mobile phone and radio
addressing, C Telecom selected Senao Computer
International as Category 1 marketing agent and
Auroa and Chuan Hong as Category 2 agent to
the sales of mobile phone and radio addressing
subscription and handsets, and the Category 1
agent Senao Computer provided the operation
window for sales of handsets and after services.
(4) Relationship with the trades:
Since C Telecom has Island-Wide operating
license of AMPS, GSM900 and GSM1800, it
has no need in mobile phone network roaming,
and in addition to providing line leasing for
private operators, the cooperation with the trades
 A Study on Competitive Advantage for Mobile Phone Operators in Taiwan　9
are in prevention of pilferage and the account
split. Due to the overseas business trips and
traveling prevailing among the nationals, C
Telecom has cooperated with overseas telecom-
munication operators to provide international
roaming services. In the overseas, C Telecom is
one of the two companies offering the most
roaming services, total 52 areas.
4.1.2 Marketing Strategies
(1) Product Strategy:
Prior to the opening for private operation,
there was only C Telecom who is providing
mobile phone services, offered only basic and
certain added services, such as insertion, voice
mail and designated transfer, without much
innovation. After opening, in order to meet the
impact of market opening, in addition to
ordinary value added services, there are new
information products provided gradually. In
order to offer more tenderly services and to
boost the short message function of digital
mobile phone, C Telecom has developed by
their own a service to check the stock market via
short message. Presently with such a service,
subscribers can transmit stock codes and receive
the stock market information, that they can
monitor the stock market information any time
and any place. With the strong and enormous
support of their own Telecommunication
Laboratory, it is easier for C Telecom to solve
problem in technical level when presenting new
373
product / service.
(2) Price Strategy:
Prior to the opening for private operation of
mobile phone market and the restructuring of
Telecommunication Bureau, C Telecom enjoyed
monopoly status. In the absence of competition
pressure, they did not bother with creative rate
structure, not did they offer new rate packages to
attract consumers. After the opening, in order to
rationalize the rate structures, C Telecom
introduced a few major downward adjustment of
rates, and had designed for different subscribers
with different rates combinations. The NT$200
monthly lease introduced in early 1999 had
brought substantial impact and had brought C
Telecom large number of subscribers to their
long stagnated operations. Since the private
operators inaugurate their services only for less
than 2 years, the profit is not high enough that C
Telecom was seen as price leader in mobile
phone industry, as far as price strategy is
concern. And, since C Telecom believed that
their own rate structure was fairly complete that
the prepaid card price would not be attractive,
that they do not have the intention to introduce
such kind of product.
(3) Distribution Strategy:
In the sales Channel strategy, C Telecom
owns 49 sales offices, 251 stations all over the
island, that they have established excellent
connection and interaction with various locals.
10　臺北科技大學學報第三十七之一期
Senao International provides C Telecom windows
for various well-known brands of handsets as
well as after services, making a mono-line
service in sales window. The terminal equipment
sales are made available also in 3 marketing
agents. The long time experience and complete
marketing channel allows subscribers to receive
single window services from handset to on-line
till the after services of Chuang Hwa Telecom.
(4) Branding Strategy:
In the field of communication
promotion strategies, due the budget control and
the radio addressing, long distance service
included in the overall advertisement budget of
Long Distance and Mobile Branch of A
Company, they have not been able to spend a lot
on the TV and media advertisement. However,
under the forceful and incessant campaign of
private operators, C Telecom have started
fighting back, with their “unique low price and
full area dual band advantages” on TV and
Newspaper media.
(5) Recruitment Strategy:
In Recruitment strategy, prior to re-
structuring C Telecom staff with people
qualified with public servants, but after re-
structuring, they are able to recruit staff by
interviewing without having passed national
examination. The education and training, with
the assistance of Telecommunication Training
Institute, each Recruitment, whether
marketing, customer services or technical
engineering, are receiving professional and
complete training courses on periodical basis.
But due to the previous monopoly position, C
Telecom have less than sufficient in marketing
and sales manpower which need be
supplemented and enforced.
(6) Equipment Procurement Strategy:
In equipment, due to the budget and
contracting, the speed of installation of mobile
and phone system of C Telecom sometime falls
behind the speed of market demand. But they
still accelerate the speed of purchasing to expand
equipment like base stations to meet the market.
AMPS system of C Telecom has originally 497
base stations, which was expanded to 570 at end
of 1998. GSM 900 system increased 570 to the
original 886 base stations. The GSM1800 which
opened on Oct. 14, 1998 will complete 1300
stations gradually. In addition, for upgrading
communication quality, both GSM 900 and
GSM 1800 have Enhance Full Rate , (EFR)
function, allowing consumers to enjoy high
quality communication effects.
(7) Customer Service Management Strategy:
Since the high quality service is the
guarantee to the marketing and sales, C Telecom
has been trying to boost their services and
network quality, to serve subscribers overall. In
Customer Service Management, they adopted
of the following measures of one-counter, counter
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 A Study on Competitive Advantage for Mobile Phone Operators in Taiwan　11
on air, network counter and off-hour service
counter to provide secured, convenient and
diversified services to assure their commitment
to subscribers. Continuous and efficient imple-
mentation of quality policy of “ Whole staff
action, Customers satisfaction, Intelligent integra-
tion, Innovative service, Inter-knitted networks
and Quality first”.
Because C Telecom must following the
procedure announced to proceed their purchase,
the installation is always delayed and there are
cases that the subscribers’ needs were not
satisfied. This is why there were always
imbalance between demand and supply before t
he mobile phone market was opened for private
operators. Hence, in the very beginning of
opening for private operators, many consumers
switched to the private ones and caused
substantial loss of subscribers to C Telecom.
Although CTelecom had begun a series of
system fine tuning and increase many base
stations, expand the system capacity, providing
additional subscriptions, but it still failed to
compete with the speed of private operators.
Additionally, the prices, both the rates and the
structure were rigid at the beginning of opening
for private operation, which kept the growth of
subscribers to stay.
Facing the flexible marketing of the private
operators, in addition to maintain the trustworthy
image of C Telecom with more than 100 years
375
history, C Telecom has endeavor to boost
competition capacity.
4.2 Case 2: T Corp
T Corp cooperates with Motorola Corp. in
developing Iridium Project for global satellite
communication system. It is a multinational
telecommunication organization formed with
large telecommunication operators of more than
10 countries. They secure the concession of
operating GSM1800 in Hongkong in 1995 and
operate digital lower power radiotelephone
(CT2). In 1997 they shifted the market emphasis
to the mobile telephone market and won the
GSM 1800 Island-Wide mobile phone license
with the highest score, and inaugurate trial- run
on December 16 the same year. On January 1,
1998, the operation is official commenced.
4.2.1 Status of Strategic Alliance
(1) Foreign Joint Venture:
The joint venture foreign firm of T Corp is
GTE of USA. GTE is one of the 4 largest public
listed companies in the world. GTE is not only
the top one in the US City Phone Network
System in market share, but also one of the
largest mobile communication operators of
USA. It has 3.8 millions subscribers and 250
sales points in the world with 24 million fixed
network subscriptions. It is also the planner and
major supplier of the US Government communi-
cation system and military satellite and radio
12　臺北科技大學學報第三十七之一期
sub-systems. GTE announced in August 1998
that it will merge with Bell Atlantic to further
expand the operation scale and competition
power of GTE USA.
(2) System Equipment Supplier:
T Corp selected Siemens of Germany
among many of the system equipment suppliers
to cooperate, based on the excellent techniques
in mobile communication. In addition, Siemens
has their branch in Taiwan allowing in-time
support and assistance and is believed to have
guarantee in the control and maintenance of
systems. Siemens Telecommunication is the
largest affiliate of Siemens in Taiwan with 25
years history and 700 high quality employees.
The other thing that worth to mention is that, T
Corp affiliate in Hongkong, Ba-Fong Telecom-
munication is also in GSM 1800 system, so,
prior to the announcement of winner of the
mobile phone operating licenses, the system
equipment has been purchased, and the
equipment was used in priority after securing the
operating license in Taiwan.
(3) Sales Channel
In order to provide consumers with
sufficient wide contact, T Corp adopted
extensive channel alliance. In the communi-
cation distributors, there are Aurora, Hsiang
Hong, Janchi, Fongsheng, Chuan Hong, Taiwan
Telecom, Taikee, Tienditong, Daily communi-
cation, total contracted distributor alliances.
376
They also formed cooperation with information
firms like Acer Tech, Janchi, and even EVA Air.
All these cooperation aimed at provide fast and
convenient service to consumers through the
wide spread service network.
(4) Relationship with the trades:
With the Island-Wide GSM 1800 operation
license, T Corp does not need to link roaming
with other operators in network linking, so the
cooperation with the trades in domestic market
is limited to the general accounting and in
pilferage prevention. In international roaming, it
covered America, Europe, Oceanic, Asia, Africa
and Middle East, making the area of roaming as
many as 52 areas. It is one of the 2 with the most
roaming countries. This makes its subscribers
enjoying the mobile communication service
outside the domestic mobile telephone network.
4.2.2 Marketing Strategy
(1) Product Strategy
In addition to ordinary basic service and
value added services, T Corp provides also
information services, such as 850 News Station,
860 Leisure Entertainment station, 880 Financial
Information station, 887 Financial Voice
Information, 167 Weather Information station,
168 Traffic Information Station special value
added information service to offer convenience
in daily life. In t he hope that the mobile phone
not just for talking, but a bridge of living
information transmission. The other feature of
 A Study on Competitive Advantage for Mobile Phone Operators in Taiwan　13
attraction is that T Corp participated in the
Iridium Plan Global Satellite communication
System. Together with the GSM 1800 operation
license secured lately, they made the only
private telecommunication operator providing
satellite and GSM Dual Frequency communi-
cation services. After the reserved card services
provided by the competitors, T Corp also
presented with OK Card-a reserved card
products to invade the youth market.
(2) Price Strategy
In pricing, T Corp insists on a set of simple
and easy to understand rate program, enable the
customer to understand straightforward, saving
the time in calculation. In the rate structure, they
offer multiple discount programs for high
volume subscribers and for low volume sub-
scribers, they provided reserved card system,
allowing the consumers of different natures have
respective applicable standard. T Corp does not
stress on price competition. Their basic principle
is not aggressive but not falling behind. So,
when the connecting fee of mobile phone
reduced from NT$1.70 to 1.15 in Sept. 1998, T
Corp make earliest announcement to reflect the
NT$0.55 difference totally to the communi-
cation fee and became the first one to reduce the
rate due to the saving in connection fee for
protecting the interest of the subscribers. The
Telecommunication Bureau maintains the prices
of reserved card at the ratio of twice of the
377
monthly lease as set.
(3) Distribution Strategy
T Corp adopted intensive strategy in sales
Channel. They build sales points, either direct
managed stores or distributors are more than the
competitors. The experience in the operation of
CT2 makes T Corp understand exactly “ What is
the most effective sales channel”. They believe
that consumers tends to visit the traditional
telecommunication stores and special stores, and
the sales channel of information and home
appliance channels will not be effective in short
period of time. Therefore, in addition to direct
managed stores, there are specialized communi-
cation stores with points all over the island, like
Aurora Communication, and ordinary traditional
communication stores. They have set up
contracted service centers to have wider contact
with consumers to provide fast and convenient
services. They claimed that they provide
preferential programs in commission for
distributors and the price difference in handset,
and they are flexible in the adjustment. As to
OK Card, they provide services at channel of
different line with long business hours to meet
the consumer’s group features.
(4) Branding Strategy
In communication, T Corp believes that in
the very beginning of opening, there should have
intensive advertisement, making the consumers
hearing and seeing 0935 when they switch on
14　臺北科技大學學報第三十七之一期
TV and read the newspaper, to build up the
brand awareness and take advance in the market.
In the early stage, they targeted at the office
worker, with the Chairman of the Board select
the leading actor of the advertisement, appealing
to technology and boasting that they are member
of iridium plan, stressing the number of base
station. They pointed out the product service
characteristics with simple, clear and direct
advertisement. It has built up the quality and
professional brand position. In the reserved card,
since they pointed at the youngsters, they chose
young, model idol singer as the speaker for their
reserve card, bombarded heavily at the media.
(5) Recruitment Strategy
In this party, T Corp believed that they are
more advantageous than other private operators
are. Since they have been operating CT2, the
have trained a team of local telecommunication
marketing men. They are different from the
others without actual battling experience.
Having participated in Iridium plan with first
class telecommunication companies of 17
countries, they are equipped with a team of
professional managers who have practical
domestic telecommunication experience, inter
national visions. In additional to the existed,
they stressed heavily on the training of
professional to create local elite in telecom
munication.
(6) Equipment Procurement Strategy
378
In hardware, T Corp has always been
emphasizing the number of base stations, which
were placed in intelligent, multi-level manners,
giving the system the flexibility to switch among
the levels automatically, as per the needs of
subscribers. Because T Corp anticipates the
number of subscribers will grow very fast and
considering the future costs in building base
station, they invested NT$14.9 billion in the
building of base stations and the exchange
equipment. They started with low-height base
station to ensure the service quality of
communication. T Corp claimed strongly that
the placing and installation of base stations has
been through planned professionally and
perfectly, that not only with wide signal
coverage, but also will have 2496 base stations
in total.
(7) Customer Service Management Strategy
In Customer Service Management, in order
to ensure the communication during moving
would not be interrupted; they select the best
system equipment, and even have continuous
coverage design in traffic trunk lines. They
invested 3% of the revenue in R&D to develop
new products / services jointly with the industry,
the government and academic units. All these
were intended to create a customer services
oriented enterprise cultural. Customer first is the
starting point of all the operation. They provide
professional yet humane customer services, with
 A Study on Competitive Advantage for Mobile Phone Operators in Taiwan　15
respects toward the subscribers’ interest.
With the smooth cooperation with the
system equipment supplier, Siemens, plus the
technical experience in the management of CT2,
T Corp has been very swift in the planning and
installation of base stations. They are the fastest
and most one in base stations among the private
operators. With the number of base stations and
the rate of coverage, the advertisement directed
to the communication quality that have no room
for doubt.
T Corp participated in the operations of
Iridium Plan, CT2; Bafang Communication
GSM 1800 system of Hongkong made them the
one with substantial telecommunication operation
and technical experience among the private
operators. Due to the less involvement of the
Foreign Partner, GTE, T Corp can really
understand the needs of the consumers in both
decision making and in product services and
meeting the changes in the Taiwan market,
which resulted to the product and price
combination that meet the taste of Taiwan
consumers.
In order to strengthen the price structure, T
Corp used the CT2 numbers to present NT$99
“Free Net”. Free Net allows subscribers of CT2
to use 096 in dual handsets, providing CT2 and
GSM double network services. Subscribers may
roam the island-wide network of T Corp with
GSM1800 handsets, or with CT2 handset to
379
communicate with ultra low prices and reduce
the charges to the minimum, but still enjoy high
communication quality and variety in services. It
is not only attract subscribers of different groups
with lower rates, but also make best use of the
network resources and promote the rate of
utilization.
The advertisement and price strategies of T
Corp are in simple and clear approach. They
appeal directly and clearly, eliminate the needs
of consumers to guess the true content. The
advertisement stressed the number of base
stations, the coverage of communication net-
work, indicating the out –of- question nature of
communication quality. The intensive TV
advertisement in the early stage clearly passed
the features of no interception, immediate
services, tried to build up the strong brand
image. They even change the company name to
the widely accepted slogan. It has successfully
implanted the brand into the minds of
consumers. T Corp believes that after the rate
competition, the brand would be the weapon for
competition. The products, services and
communication quality will finally come to
similar levels among the operators, there will
then Brand Image left to be distinctive and to be
the major factor for winning.
The existing equipment supplier of T’s
GSM system Siemens is not strong at the 3G
mobile communication equipment. Therefore, T
16　臺北科技大學學報第三十七之一期
Corp has requested other international equipment
suppliers to support his 3G equipment.
4.3 Case 3: K Telecom
K Telecom, dominated in person by Ku
Cheng Yun who is the second generation of
Ku’s family, gain the telecommunication
business license of GSM1800 in northern area of
Taiwan. In addition to the Ku Group, the most
prestigious investors in domestic corporation
include Microelectronics Technology Inc., Shin-
Kong Life Insurance Co., Cathay Life Insurance
Co., Tecoelectronic & Machinery Co. As for the
foreign investors, the original telecom company
of Sprint is changed to Bell Canada International
(BCI). In January, 1999, K Telecom purchased
the 82% of shares of Tuntex Telecom dominated
by Tuntex Incorporation, formally become the
third telecom company of privately run in
Taiwan.
4.3.1 Status of Strategic Alliance
(1) Foreign Joint Venture:
BCI, one of K Telecom’s partners, starts its
career as one of the top ten in the field of
telecom industry of the world. It takes charge of
the Bell Canada Telephone Company, Bell
Mobil Telecom, Northern Telecom, Bell
Telecom International, TMT Satellite Communi-
cation. Its business contains the communication
service and equipment produce of wired,
wireless and satellite network, with 120,000
380
people, total assets of 41 billions. Bell is also
one of biggest privately owned enterprises in
Canada, earning a big fame in operational
management and professional skill.
(2) System Equipment Suppliers
K Telecom has highly regard for Lucent
Technology Corporation because of the ability
of bringing forth new idea in technical provided
by Bell laboratory so that it can maintain the
total telecom quality. Moreover, to bring the
consumers of Taiwan into the field of broadband
mobile telecom of 21 century, K Telecom
imports the first set of GPRS (general packet
radio service) advanced network system in Asia.
The system is first built up by Nokia who is
responsible for southern part of island. Lucent,
with 120,000 people and offices in the world,
separated from AT&T in the first of October,
1996. Nokia obtains the first place in the market
possessed rate of GSM1800 system of the world
combined with the two other system facility
suppliers of GSM900 ranked in the front of the
third place in the market. Under the principle of
one company one system the rest of company
insist, K Telecom simultaneously corporate with
this two suppliers and receive the overall back
up from them. It is the first ever in Taiwan.
Therefore, K Telecom believes that they can get
more advantages than any other companies in
maintaining the internet infra- structure and
communication quality.
 A Study on Competitive Advantage for Mobile Phone Operators in Taiwan　17

(3) Sales Channel coverage of total five continents and all the big
K Telecom has now quite few direct sales countries like Japan, USA, Canada , China and
stores in Taiwan, including the flagship store so on. K Telecom still develop the potential
near the Taipei Railway Station and the other subscribers to get more market share.
major counties and cities around Taiwan. As for 4.3.2 Marketing Strategy
the dealers, K Telecom corporates with ARCOA (1) Product Strategy
Telecom, COSMOS Telecom, TECOM, K Telecom continuously produce a new
Easycall Telecom, Globe Telecom, Digital product or service in a rapid due to the highly
Communication, Chunghwa Telecom Co., contest of mobile market. To attract the sub-
Aurora Corporation. In addition to the scribers, K Telecom create a financial channel
traditional communication marketing, K Telecom 288 which subscribers can grasp the real-time
also collaborates with the electrical house financial information and life channel 388 which
appliance industry: Sony, U-Lite Electronic Co., consumers can order pizza, KTV boxes, taxi
Onking Chain-Store Co. In pre-billing system, call. Furthermore, K telecom cooperates with
K Telecom has partner relationship with the the Pop starts to provide the value added voice
Welcome Supermarket, Watsons, Sunsun service. For example, the voice of alarm is using
Department Store, 7-11, OK Convenience Store the voice of the Pop starts. After the clearly
for consumer’s conveniences. Moreover, K investigations and valuations, K Telecom
Telecom also develop the new marketing of introduces the prepaid service for low usage
record store for the young groups. subscribers.
(4) Relationship With The Trades (2) Price Strategy
K Telecom original has contract with K Telecom is aware of the strong
Tuntex Telecom who runs the license of competition on the price. But the construction
GSM1800 in middle and southern part of island, of fare is widely involved the different levels
ongoing the activity of communication thinking of the costs of business, traders
wandering. After acquisition the half of shares shouldn’t neglect the major factor of the external
of Tuntex Telecom, K Telecom become the third contest and the industrial structure. K Telecom
private operator of GSM1800 in Taiwan. Due to also has to pay a huge connection fee to the
the global village effect, K Telecom sign up the Chun Hwa Telecom. In the long run, the
contract of globe roaming with foreign lowering price will influence the quality of
companies and now has a perfect geographic service unless the connection fare may be cut

381
18　臺北科技大學學報第三十七之一期
down. Therefore, K Telecom emphasis the
quality on the price plan but not become the
leader of lowering price plan. From the K
Telecom price plan, finding that there are
different portfolios of price plan for the variety
of subscribers. Then, they may choose one of
the cheapest plans according to their own needs.
As to the prepaid card, the idea of free monthly
fee, free deposit is to extend the segment of low
usage subscribers.
(3) Distribution Strategy
With the direct sales store and agent under
special contract, K Telecom can provide the
kindly professional service for subscribers. K
Telecom uses computer link up and call center
to keep and manage the relationship between
marketing dealers and herself. Also, on the
combinations of sell promotion, K Telecom
corporated with the cellular retailed company by
using their own resources to providing more
favorable promotion for channel distributors.
Besides, K Telecom holds on to the idea of
which mobile phone is the necessity of the
people’s livelihood. K Telecom not only signs
contract with 7-11 but also cooperate with the
record stores to attract the young generation.
(4) Branding Strategy
Through different media, like TV,
newspaper, magazine, and internet, K Telecom
works really hard to acquire subscribers. In the
beginning, K Telecom takes the quality of
382
service, attempting to make the image of
professional service. In the early 1998, K
Telecom used the ON LINE as WANG
LAI( means “pineapple in Taiwanese) for
harmonic sound to restore the refreshment and
built up the kindly image for businessmen who
have the needs of mobile phone. After bringing
about the prepaid service, K Telecom access to
the more subscribers. In order to coordinate the
location of product-directed and combine the
brand and image of product, K Telecom also
exhibit the differences of style and flavor with
ON LINE and gain extensive responses and
discussions. Aside from the advertisement of
different products with different styles, K
Telecom emphasizes that they are the first to
adopt the cell-based system and seek to build up
the technology image for quality success.
(5) Recruitment Strategy
K Telecom grants the customer service
personnel should receive sturdy training;
therefore, company is proud of the quality of
their personnel. With college degree above,
customer service personnel take pre-work and
audit on line training at least one month. Thus,
they not only can understand the telecommuni-
cation know-how but also have a good etiquette
to deal with so that can settle down all of the
problems from subscribers. Moreover, K
Telecom also conducts the complete training and
expects their personnel can give the support to
 A Study on Competitive Advantage for Mobile Phone Operators in Taiwan　19
the most for the upper level and below level
personnel. K Telecom pushes the idea of inside
service to maintain the service standard.
(6) Equipment Procurement Strategy
To make subscribers enjoy the most
advanced integrated telecom service, K Telecom
invest huge amount of money in advanced
technology and import the know-how and
equipment which are suitable for the future
development. Under the condition of which
domestic dealers generally maintain standing
system facility supplier, K Telecom, break the
record, sign contract with Nokia who is the
second system facility supplier. They import the
first set of GPRS (general packet radio service )
in Asia. GPRS is the technology which allows
the GSM technology to transfer voice as well as
data. It will largely help the quality of the
entire network and the development of the future
product.
(7) Customer Service Management Strategy
K Telecom set up a KPI (keep performance
indicator) in every departments and aim to keep
the competition in the market for the best
satisfactory. In marketing aspect, K Telecom
cautiously select the distributing and marketing
dealers with good reputation in the market and
hold a large scale educational training,
conducting the idea of operational and service.
As to the consumers, billing accuracy and
payment convenient are the key factors of
383
influencing the user satisfactory (Dept of Tran-
sportation, 1997). K Telecom introduced the
advanced billing system for upgrading the
quality of service and also put a lot of efforts on
the process of management in order to issue the
first payment successfully.
With the cooperation of Lucent
Technology, K Telecom becomes the first
telecom company adopting the micro-cell based
station in Taiwan. As the users continuously
increase, the establishment of micro-cell based
station and large-scale based station don’t
interference the message-transmitted
communication dead angle, disturbing and
jamming. Meanwhile, it lowers the efficient of
cell-phone and increases the battery life. By
using the way of strongly advertising the micro-
cell based station, K Telecom educates the
advantage of communication quality. Asides, K
Telecom match the micro-cell technology into
their marketing strategy to satisfy the needs of
subscribers.
In 1998, K Telecom merged Tuntex
Telecom and then became the third privately
owned in Taiwan. Therefore, we corporate with
Nokia and expect to establish the first set of
GPRS in Asia which can provide both voice
calls and data calls. K Telecom also have the
20　臺北科技大學學報第三十七之一期
variety of wireless communication application
service for subscribers, for example: 24 hours on
line e-mail. In order to satisfy the subscribers
from different level, and after well market prepare for the early introduction of standards-
investigation, K Telecom first introduced the compliant 3G services in K Telecom’s network.
prepaid card service and make a huge shock on Nokia will supply a fully functional 3G
the market. It makes a lot pressures on other experimental system which will be used by K
competitors who latter on become followers by Telecom to evaluate, test and demonstrate end-
the product. For the convenience, K Telecom to-end mobile multimedia applications in totally
signs up the contract with 7-11 to sell the live working environment.
prepaid cards. In this way, it can promote users
to choose these convenient products and match 4.4 Proposition Development
up the idea of company. In the meantime, K From the case study and data analysis, ten
Telecom used the interactive advertisement from propositions could be drawn to link the theory
TV, by choosing the subscribers to be the actor and practice for the reference of mobile
of advertisement story for K Telecom, operators in Taiwan and the base of further
increasing the feel of identification that draw a studies to be explored and empirically tested.
lot of response.
After getting rid of the obstacles of Proposition 1: “Sales Channel” is the most
important factor of strategic alliance factors;
operation in single area, K Telecom believed it which are, foreign joint venture, system
will gain more power in the competition. equipment supplier, sales Channel and
relationship with the trades.
Especially, facing the strongly competition in
There was a lag in Taiwan’s mobile service
Taiwan telecom market, K Telecom has to react
market. It’s not possible for Taiwan’s operators
rapidly in order to respond the strategies from
to do everything by themselves. It’s important
the others. In 2000, K has singed up a
to gain the mobile operation management
partnership with Japanese operator NTT Do Co
experience from the foreign joint venture, build
Mo whom is well known for its I-Mode services.
up the network with system equipment supplier,
I-mode is also a role model for the third
establish a sales Channel and cooperate with the
generation mobile services. This shows K
trades.
Telecom’s ambition on the telecom territory.
Nokia has signed an agreement to
Proposition 2: Price is the first criteria for
subscribers
cooperate on the development of 3G mobile A Study to choose
on Competitive whichformobile
Advantage Mobile operators
Phone Operators in Taiwan　21
to use because the quality of the networks of
networks and applications. The will also work
any operators is relatively stable nowadays.
together on network technology development to In the beginning of the privatization mobile

384
services, price was the key concerns for most of
the subscribers. The mobile network is all build
up by the global equipment suppliers and
managed by the foreign join venture and local
operators. Neither to say, the network quality is
relatively stable. The mobile usage price has
dropped significantly due to the privatization.
But, comparing with the fixed line price, it’s still
expensive. For certain subscribers, price is the
concern.
Proposition 3: In Taiwan mobile market,
quality, innovated services and branding
strategies are the key components of the
marketing strategy.
After analyzing marketing strategies, it is
identified that the key to success for Taiwan
Mobile communication industry is call quality,
innovated services and brand image. Besides the
concern of price, subscribers are focus on phone
call quality, innovated services and brand image.
Ring tone download, short message, mobile
coupon, stock quotes, weather report and taxi
plate recording are the examples of the
innovated services. Brand image differentiates
the mobile operators’ services. All the operators
positioned themselves in certain position to
attract their subscribers.
Proposition 4: Mobile operators are not only
GSM operators. To be able to survive in future,
385
mobile operators extend their operation to
fixed lines, cable TV and mobile.
Taiwan is unusual in having licensed fixed
line competition at a very late stage relative to
mobile development. Among the leading
operators, TCC and FET have strong affiliations
to a fixed line entrant. Media groups transform
into global multi access players. The Media
groups do this via joint ventures or mergers and
acquisitions or other partnerships with access
providers. Taiwan’s mobile satellite market is
deregulated in 1999, which paved the way for
the introduction of Global Mobile Personal
Communications Satellite System (GMPCS).
Proposition 5: A series of local and global
consolidations are now taking place in
Taiwan’s mobile industry.
Operators increase ownership stakes in or
partner with other operators in order to increase
the national and global reach for their service
providers. Operators do this in order to focus on
low cost operations and take advantage of
economies of scale in network building and to
take leadership in service provider role before
new players do this. New industry structure is
22　臺北科技大學學報第三十七之一期
consisting of a few network providers and many
services. Stronger price pressure is towards
telecom suppliers. New service providers rise
quickly and they have completely different the very beginning of the operation, the
customer needs. operators have to cooperate with other who has
wide radio coverage. With the unique features
Proposition 6: In Taiwan, 3G licenses of Taiwan mobile phone industry, the strategic
announced in 2001. All the incumbent alliance is for securing market resources and
operators are fighting hardly with each other technical resources. Since the mobile communi-
as well as new entrants cation operators are the leading business groups
in Taiwan, they are not short of funds. It’s more
3G is a generic term rather than a specific important for them to keep the market share and
technology. While the move to 2G (GSM) up-to-dated technology. The mobile
signifies the transition from an analogue-based communication industry is a technology-driven
network to a digital one, the move to 3G refers industry.
to the evolution of networks to include data as In marketing strategy, the operators
well as voice services. The profitable 2G obtained resources and channels through alliance
businesses attract the new entrants. and emerged with various market strategies
combination. In product strategy, the services
provided by the operators are similar, with
V. CONCLUSIONS　
emphasis in the convenience to daily life of
5.1 Conclusion subscribers. In price strategy, immediately from

Mobile communication industry is the opening for private mobile operation, the

intensive in technique, capital and human subscription fee has been downward adjusted

resources. The result of the government control continuously and accompanied the improvement

on the GSM licenses has caused the lagging in price structure. In distribution strategy, every

behind of Taiwan communication industry operator has directly managed stores, sales

development. It forced the operators to department and distributors. The operators with

cooperate with foreign firms, in equipment of prepaid card services make cross trade alliance

operation as well as management skills after the with convenience stores to offer convenient

opening of licensing. The obligation of the subscription services to the sub- scribers. In the

roaming agreement among island-wide and communication and promotion strategy, the

regional operators enables the regional operators media advertisement is the major approach of

to utilize their services to the end subscribers. In market campaign and following by the different

386
 A Study on Competitive Advantage for Mobile Phone Operators in Taiwan　23
product promotion combination. The regional
operators elected to strengthen the interaction
with local market and to transform
disadvantages into advantages. In recruitment
strategy, all the operators invested heavily in the
training of customer service personnel, which
demonstrates the importance of service quality.
In equipment procurement Strategy, the building
of base stations is closely related to the quality
of communication, so all the operators injected
huge amount of techniques and manpower in
planning and maintaining their networks.
After analyzing and deducing the strategic
alliance and marketing strategies we can find
that through the application of resources and
capacity, it is created competitive advantages in
communication quality, service quality,
coverage, innovated services, convenience, price
strategy and the brand awareness. From this
research, it is identified that the key to success
for Taiwan mobile communication industry is in
quality, sales Channels, innovated services and
brand image. Therefore, it is believed, with the
open and well-intended competition, the
subscribers are able to enjoy cheaper rate, wider,
multi-dimensional service and better service
quality.
However, The potential of 3G market
cannot be ignored. 3G systems provide faster
net access and voice and data transmissions than
existing second-generation GSM system whose
387
ransmission speeds can reach to 2Mbs per
second, several hundred times faster than GSM.
Also, the huge investment is expected to lure
international vendors to Taiwan. Hence, it is
very important for existed cellular phone
operators to proposed effective strategies to
overcome the challenge.
5.2 Marketing Implications
We would like to provide certain sugges-
tions to the operators:
(1) Building technical base through strategic
alliance:
The past strict control of the government
over radio communication knowledge caused the
private operators to rely on the foreign firms, in
experience and techniques for their operation.
Among various kinds of alliance activities, the
important one is to master the technical sources,
securing the management skill and then create
new products and services that meet the local
market demand. We hope the industry will some
day upgrade technical level of Taiwan communi-
cation industry, strengthen the competition
strength, and playing the roles as their foreign
partners are playing in Taiwan Market.
(2) Participate in public welfare to feedback to
the public:
24　臺北科技大學學報第三十七之一期
Mobile phone industry has wide business
opportunities, hefty profit. It is suggested that
the industry shall appropriate funds to establish
foundation to contribute to the public. In the existing second-generation GSM system.
meantime, participate and sponsor the public Transmission speeds can reach to 2Mbs per
interests. Through participation in such second, several hundred times faster than GSM.
activities, they will receive the public The 3G license competition is expected to attract
identification and build up good enterprise bidders from among the island’s leading
image. companies, especially those that do not currently
(3) Merging to Fix-Network, building market have a mobile phone business. Also, the huge
scale: investment is expected to lure international
With the prevalence of domestic city vendors to Taiwan.
phone, and the hot market of radio
communication market, the operators, after the 5.3 Future Research Direction
opening of fixed-network market, can secure the This study formulates the following two
inter- national telephone services, which is suggestions:
charged higher than the other country, and the The concept of telecommunication services
wide band information integration (internet) keeps on updating. Voice is not only service
services. It is estimated the fixed-network anymore. Internet portals (such as Yahoo),
market will worth more than NT$100 billion. multimedia player (such as AOL Time Warner)
The mobile phone operators may secure the are all coming to the battle. Future researchers
opportunity and build the market scale through could study on the operator trend:
strategic alliance. Auction of the 3G licenses is a very good
(4) 3G Development in Taiwan way for government to cover the deficit.
Taiwan’s Directorate General of However, the extremely expensive license fee
Telecommunications (DGT) established an leaves the operators financial challenge. Future
exploratory committee to study the liberalization researches could study the financial impact of
of third-generation (3G) mobile services the 3G licenses comparing to the 2G licenses.
operations. DGT is planning to issue the Finally, this study shows that through
licenses by December 2001 to enable operators strategic alliance and marketing strategy,
to launch their services by year 2002. operators can define their own competitive
The potential 3G market is expected to advantage in Taiwan market.
attract heavy bidding. 3G system provides faster
net access and voice and data transmissions than

388
 A Study on Competitive Advantage for Mobile Phone Operators in Taiwan　25

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390