A New Alternative in the Video Service Market : An Analysis of Chunghwa Telecom’s Multimedia on Demand Service in Taiwan
Research output: Conference Papers › RGC 32 - Refereed conference paper (without host publication) › peer-review
Author(s)
Detail(s)
| Original language | English |
|---|---|
| Publication status | Presented - 7 Sept 2004 |
| Externally published | Yes |
Conference
| Title | The 15th ITS Biennial conference |
|---|---|
| Place | Germany |
| City | Berlin |
| Period | 4 - 7 September 2004 |
Link(s)
| Permanent Link | https://scholars.cityu.edu.hk/en/publications/publication(f26521b1-cef4-4d3c-ba92-d97a40d8ba1e).html |
|---|
Abstract
Chunghwa Telecom (CHT) dominated the telecommunications services market until 2000 when the R.O.C. government opened up three new fixed networks in Taiwan. Chunghwa in October 2003 sought the approval of the Government Information Office (GIO) to offer “multimedia-on-demand” (MOD) services to its ADSL subscribers. When CHT launched its MOD service in Taipei county in March 2004, it had only thirteen basic channels, including five terrestrial channels, some religious channels and two locally originated channels. (CHT paid NT$90 million to CTS, a terrestrial TV station, to run the two channels on behalf of CHT.) CHT also announced that its set-top box would be provided free of charge. If the customers subscribed to their MOD service before the end of the promotion period, there would be no installation fee and the basic channel fee (NT$150, about US$4.5) could be waived for the first six months.
Foley (1992) found four main reasons why telecommunications carriers wish to enter video markets: (1) the local phone revenue does not increase; (2) they wish to fully utilize the extra broadband; (3) the home video market may have the potential for more revenue; and (4) they can more fully exploit the economies of scale. The above four reasons can also explain why CHT is eager to provide MOD. Dr. C.K. Mao, the former chairman of CHT, said that CHT was not interested in acquiring cable systems or cable channels, because whatever the cable industry could do, CHT could also do.
The first part of this paper sets out to analyze the government policies, driving forces and barriers behind CHT’s MOD. The second part of the paper then synthesizes the discussion regarding the competition, cooperation and complementarities in relation to the video platforms by applying the co-opetition value net model and the five forces competition model.
Foley (1992) found four main reasons why telecommunications carriers wish to enter video markets: (1) the local phone revenue does not increase; (2) they wish to fully utilize the extra broadband; (3) the home video market may have the potential for more revenue; and (4) they can more fully exploit the economies of scale. The above four reasons can also explain why CHT is eager to provide MOD. Dr. C.K. Mao, the former chairman of CHT, said that CHT was not interested in acquiring cable systems or cable channels, because whatever the cable industry could do, CHT could also do.
The first part of this paper sets out to analyze the government policies, driving forces and barriers behind CHT’s MOD. The second part of the paper then synthesizes the discussion regarding the competition, cooperation and complementarities in relation to the video platforms by applying the co-opetition value net model and the five forces competition model.
Research Area(s)
- multimedia on demand, competition, ADSL, telecommunications
Bibliographic Note
Information for this record is supplemented by the author(s) concerned.
Citation Format(s)
A New Alternative in the Video Service Market: An Analysis of Chunghwa Telecom’s Multimedia on Demand Service in Taiwan. / Liu, Yu-li.
2004. Paper presented at The 15th ITS Biennial conference , Berlin, Germany.
2004. Paper presented at The 15th ITS Biennial conference , Berlin, Germany.
Research output: Conference Papers › RGC 32 - Refereed conference paper (without host publication) › peer-review
