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1. Executive Summary
LTE – Long Term Evolution, marketed as 4G LTE, is a new generation of mobile-phone network which will enable the mobile operator to provide significantly faster data rates for mobile broadband. With the new redesign and simplification of the network architecture, 4G LTE technology will be able to provide download peak rates of 300 Mbit/s, uplink peak rates of 75 Mbit/s, which is five time faster than the current 3G networks. It will allow the mobile operators to cope with ever growing mobile data traffic demands and provide a faster mobile broadband service in a cost-efficient manner. [4]
WiMAX is another 4G technology that allows the wireless operators to provide a superfast mobile broadband service. In Taiwan, the government has been supporting the WiMAX 4G technology aiming to boost the local Taiwanese wireless device producer industry. The WiMAX licenses have been issued to the six operators in 2007. Apparently, the launch of WiMAX 4G was not successful. The operators could attract only about hundred thousand subscribers after 5 years of operation. [5]
4G LTE will be the future mobile broadband technology globally as more mobile carriers worldwide have committed to it. The licenses for 4G LTE in Taiwan will be issued by the end of 2013. It’s expected that all the big operators will acquire for the licenses. To ensure successfully deployment of 4G LTE, it’s important for the mobile operators to understand the customers’ wishes and needs.
This thesis project is conducted to gain a better understanding of the current mobile users in Taiwan. The goal is to identify and understand customers’ attitudes, preferences, and satisfactions towards the current mobile carriers. Besides, it also studies customers’
expectations of the next generation mobile carriers – 4G LTE. The data input of this thesis project was a survey data collected from National ChengChi University students, and people living in Taiwan by on-line questionnaire. The sample size was 872.
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國立 政 治 大 學
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N a tio na
l C h engchi U ni ve rs it y
Key findings from the analysis are listed below.
61% of the respondents spend less than 599 TWD a month on their total mobile phone bills. 58% spend less than 199 TWD a month for mobile internet while about 10%
spend more than 800 TWD a month for mobile internet service.
Voice call is the most important service among all the services provided in mobile network, followed by short message service (SMS), and mobile internet service.
Multimedia message service (MMS) and video call are not important mobile services.
ChungHua Telecom is the most popular carrier in Taiwan. Of all the respondents, 57%
use ChungHua Telecom, 28% use Taiwan Mobile, and 13% use FarEasTone.
Subscribers tend to stay with ChungHua Telecom than other carriers.
The most common reason for choosing the mobile carrier is cheaper rate to call their family and close friends. The second most common reason is the network quality reputation.
The respondents rated network coverage, monthly rate plan, voice call quality, and internet speed as the most important features. However, they are just willing to pay more for the better coverage and the internet speed.
The most satisfying current mobile carrier is ChungHua Telecom, followed by Taiwan Mobile and FarEasTone. ChungHua Telecom was rated as the best in network coverage and voice call quality satisfactions while it was rated as the lowest satisfactions in customer loyalty program, choice of handsets, and discounted price handsets. FarEasTone was rated as the best discounted price handsets.
With regard to expectations of 4G LTE; the respondents rated network coverage, rate plan, internet service speed, and voice call quality as the top most important features.
50% of the respondents plan to subscribe for 4G LTE after one year. Regarding the feeling to subscribe for 4G LTE; 42% stated that they will wait and listen to other comments, 29% stated they will wait for promotion, 21% stated they will wait for
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國立 政 治 大 學
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favorite mobile phone, and 4% tend to be one of the first to use 4G LTE. ChungHua Telecom is the most preferable carrier for 4G LTE.
Regarding the price acceptance testing of 4G LTE service, 888 TWD a month package is the most preferable by heavy mobile internet user group, who spend more than 6 hours a week using internet on their mobile devices. Most of them currently pay more than 800 TWD a month on total bill and more than 400 TWD a month for internet service. Apparently, this heavy mobile internet user group is willing to pay more for better service, especially for faster data service.
Concerning the preferable 4G LTE carrier, 95% of current ChungHua Telecom subscribers prefer to subscribe for the same carriers. Only 65% of current Taiwan Mobile and 52% of current FarEasTone subscribers prefer to subscribe for the same carriers in 4G LTE. 32% of current Taiwan Mobile subscribers and 42% of FarEasTone subscribers plan to switch to ChungHua Telecom when they subscribe for 4G LTE.
Regarding mobile carrier switching, top reasons for the mobile users discontinuing subscriptions and switching to other carriers are poor network coverage, voice call quality, slow internet speed, unsatisfying customer service and support. The most common motivations for the mobile users to stay with the carriers are cheaper rate to call family and close friends, and network quality reputation.
The analysis result reveals that network coverage, monthly rate plan, and voice call quality are very important to the mobile users in 4G LTE. While 4G LTE allow the operators to provide superfast mobile broadband, the mobile operators should concentrate on not only increasing mobile data service speed but also expanding the network coverage as soon as possible, maintain voice call service quality, offer a wide variety of handsets at some attractive prices, and setting tariff rate competitively.