Chunghwa May Be Dethroned in Taiwan’s Telecom Market

Taipei, Feb. 23, 2012 (CENS)–Chunghwa Telecom Co., Ltd. is estimated to lose the title of the most profitable telecom carrier in Taiwan this year after the company announced its forecast of NT$5.05 per share in after-tax earnings for 2012.

The estimated figure is NT$1 short of 2011’s earnings result and may be outperformed by NT$5.34 per share estimated for Taiwan Mobile Corp.’s 2012 operation.

Chunghwa Chairman S.J. Lu pointed out that increasing costs have driven down the company’s earnings, referring to continuous ceiling-rate limits imposed by government and intensifying competition.

However, the chairman is optimistic about the future of broadband Internet services based on optic fiber lines and value-added mobile services, fixed network services and cloud computing service.

The company set its 2012 revenue goal at NT$188.8 billion (US$6.2 billion at US$1:NT$30), slipping 1.86% from 2011’s level. Its forecast of after-tax net income for this year is NT$39.1 billion (US$1.3 billion), sinking 16.82% year on year.

The company’s executives pointed out that the implementation of indifferent rate between local and long-distance connections will affect around NT$2.4 billion (US$80 million) of the company’s 2012 revenue.

http://cens.com/cens/html/en/news/news_inner_39381.html

News from CENS.com Economic News

HTC faces squeeze in Android, Windows camps: analyst

Taipei, Feb. 28 (CNA) Taiwan’s HTC Corp. is facing the squeeze in the Android and Windows camps as Nokia Oyj has won more ground in the Windows Phones market and Samsung is outperforming the Taiwanese company in the Android sector, according to U.S.-based research firm Strategy Analytics.

Global smartphones using Microsoft Corp.’s Windows operating system grew 36 percent sequentially to reach 2.7 million units in the fourth quarter of 2011, Strategy Analytics said in a report recently.

Nokia, whose global Windows Phone shipments hit 0.9 million units in the period, overtook HTC and other vendors to become the world’s largest Windows Phone maker with 33 percent market share, the report said.

“Nokia’s Microsoft smartphone growth during the quarter was achieved partly by capturing market share from HTC,” said Tom Kang, director at Strategy Analytics.

“This is a challenging development for HTC because it is also losing ground to Samsung in the Android segment,” he added.

“HTC is now at risk of being caught in a pincer movement between the giants of Samsung in Android and Nokia in Microsoft, and HTC must move with urgency to address the problem,” Kang said.

In February 2011, Nokia and Microsoft announced plans to form a broad strategic partnership that would use their complementary strengths and expertise to create a new global mobile ecosystem.

The report added that Nokia’s growth can be attributed to an expanded portfolio of Windows Phone 7 models such as the Lumia 800, an increased retail presence and highly visible marketing campaigns across several European and Asian countries.

Further, Nokia announced the Lumia 610 on Monday at the Mobile World Congress tech fair in Spain, its first Windows Phone aimed at the mass market.

“Overall, the 610 looks like an attractive package for the mid-market and prepaid customers,” Tony Cripps, principal analyst at Ovum, commented following the product launch.

“The combination of Nokia, Microsoft, an aggressively marketed mid-range Windows Phone device, and an appealing array of Nokia developed applications looks strong on paper,” Cripps said.

“However, should the offering fail to kick start demand, both companies’ hopes for renewed relevance in the smartphone market will be seriously dented,” he noted.

Meanwhile, Samsung was the largest LTE (long-term evolution)-enabled Android phone maker in the fourth quarter of 2011, selling 1.7 million units and taking 41 percent market share, according to Strategy Analytics.

LG Electronics Inc. ranked the second with 800,000 units sold and a market share of 20 percent, exceeding HTC’s 700,000 units and 17 percent market share.

For the full year of 2011, Samsung remained the top LTE Android phone maker with sales of 2.6 million units, followed by HTC with 2 million units and LG with 1.1 million units.

HTC has admitted to investors on Feb. 6 that sales of its LTE phones in the United States missed its expectation in the October-December quarter of last year due to less attractive form factors, such as a thicker body and shorter battery life.

The company said it expects to build a new wave of momentum for LTE phones in 2012 as such products gain more popularity in the U.S. and their functionality and design improve.

http://focustaiwan.tw/SearchNews/hyDetailws.aspx?qid=201202280010&q=mobile

News from Focus Taiwan

Economics ministry to launch food traceability app

Taipei, Feb. 22 (CNA) An online platform for food traceability will be launched in July, allowing people to track the origin of ingredients, follow the manufacturing process and access information about the finished product, the Ministry of Economic Affairs (MOEA) said Wednesday.

Government agencies such as the Department of Health and the Environmental Protection Administration will supervise and monitor the data on the platform, the MOEA said.

The initiative will allow consumers to track food origins and the governing bodies to conduct food safety management, Economics Minister Shih Yen-shiang said.

The platform will compile information from the supply chains and set up an alert system that would track and control food scares, he said.

The platform will be accessible via the Internet, cell phone apps and bar-code readers, the ministry said.

So far, 15 food manufacturers have joined the initiative, according to the MOEA

http://focustaiwan.tw/SearchNews/hyDetailws.aspx?qid=201202220042&q=internet

News from Focus Taiwan

112 — emergency number on GSM phones

Taipei, Feb. 27 (CNA) People in need of emergency assistance, whether at home or abroad, can get an immediate response if they dial 112 on their mobile phones, an official at the Executive Yuan’s Consumer Protection Committee reminded the public Monday.

Wang Shu-hui, a senior executive officer of the committee, said 112 has been preset by the global system for mobile communications (GSM) as the emergency telephone number with the highest degree of international accessibility.

Even if a person’s telecommunication service provider fails to provide an emergency service, a mobile phone user can still send an SOS message through the 112 hotline because GSM will automatically search for other service providers to build a link, Wang said.

If a foreign traveler needs help in Taiwan, for example, the person can call the 112 hotline and then follow the instructions to get into contact with Taiwan’s two emergency hotlines: 110 for the National Police Agency and 119 for the National Fire Agency.

http://focustaiwan.tw/SearchNews/hyDetailws.aspx?qid=201202270020&q=telecommunication

News from Focus Taiwan

Asustek optimistic about 2012 sales of Ultrabooks, tablets

Taipei, Feb. 24 (CNA) Taiwanese PC maker Asustek Computer Inc. is hoping a series of new products set to hit the market soon will fuel strong growth in sales of Ultrabook laptops and tablet computers in 2012.

Asustek Chief Executive Officer Jerry Shen said the company plans to launch a number of second-generation Ultrabooks in May this year to meet demand in each price segment and boost sales.

“There will be models priced at US$799. Some models are also likely to be priced at US$699,” he told reporters on the sidelines of an investor conference.

Shipments of Asustek’s first Ultrabook, dubbed “Zenbook,” have also returned to normal after the casing supply line stabilized, Shen said.

He expects Zenbook shipments to be higher in the second quarter than in the first three months of the year and sees the Zenbook line as accounting for 15-20 percent of Asustek’s total notebook shipments for the year as a whole.

The world’s No. 5 PC maker forecast that its notebook shipments will reach 18 million units in 2012, up 22.4 percent from 14.7 million units last year.

Separately, Asustek expects to ship 600,000 units of tablet PCs in the first quarter, and the number will jump to 1.2 million units during the April-June period as its new products hit store shelves.

Asustek rolled out its Eee Pad MeMO, the world’s first 7-inch quad-core tablet, in January at the Consumer Electronics Show (CES). It said its Wi-Fi version will be priced at US$249 and will go on sale in the second quarter of 2012.

The company said it also plans to launch another two 10-inch tablet PCs running on Google Inc.’s Android 4.0 operating system in the first half of this year.

Shares of Asustek closed down 0.77 percent at NT$258 in Taipei Friday.

http://focustaiwan.tw/SearchNews/hyDetailws.aspx?qid=201202240042&q=computer

News from Focus Taiwan

Lower-priced Ultrabooks to drive PC growth this year: research

Taipei, Feb. 26 (CNA) The super light and thin laptops that Intel Corp. has placed its bets on are expected to provide new momentum for the slowing personal computer market in 2012, a Taipei-based research firm said recently, as vendors further cut Ultrabook prices.

PC shipments in the first three months of 2012 are projected to fall by 5.3 percent quarter-on-quarter, according to a report released by DRAMeXchange Technology Inc.

The decline is being attributed to the traditionally weak first quarter and the hard drive disk supply shortage that will not see full recovery until the end of the current quarter, the report said.

Further, PC shipment growth is forecasted at 5.4 percent for the whole of 2012 based upon the back-to-school effect in June, the holiday season and the potential wave of commercial upgrades in the second half of this year, the report said.

From the product perspective, DRAMeXchange said the rise of affordable Ultrabooks will provide the main PC growth momentum in 2012.

The Ultrabook, a new concept for laptop computers introduced by Intel in June last year, will attract more consumers with its thinner, lighter form factor, longer use times, and faster boot and connection features, it noted.

“As Intel’s management of the supply chain enables cost reductions in 2012, Ultrabook retail prices will likely be driven down below US$800, or even US$700,” DRAMeXchange said.

“New models will continue to hit the market in the second half of 2012, which should stimulate purchases,” it added.

Looking at price, standard notebook average selling prices are about US$650 in 2012, so that Ultrabook prices needs to dip below US$700, as a US$50 price gap would be acceptable to consumers, the research firm said.

In the fourth quarter of 2011, Asustek Computer Inc., Acer Inc., Lenovo Group, and Toshiba Corp. all introduced Ultrabook products, but their price tags exceeded US$1000, making the products less attractive to consumers.

Given the expected price cut, Ultrabook shipments are forecasted at 20 million units this year, taking 10 percent of the overall notebook shipments compared with 2 percent last year, DRAMeXchange predicts.

The figure will rise to 55 million units in 2013, putting Ultrabook’s market share at 25 percent, it added.

On Feb. 24, Asustek Chief Executive Officer Jerry Shen told investors that the company plans to launch a number of new Ultrabooks in May this year with prices as low as US$699 to meet demand in each price segment and boost sales.

Shen further sees the Ultrabook line accounting for 15-20 percent of Asustek’s total notebook shipments for the year.

In January, Acer announced it would launch cheaper Ultrabooks in the third quarter of this year in response to competition from aggressive rivals such as Lenovo, which unveiled two Ultrabooks, sized 13.3 inches and 14 inches, at the Consumer Electronics Show in Les Vegas with a price tag of US$699.

http://focustaiwan.tw/SearchNews/hyDetailws.aspx?qid=201202260005&q=computer

News from Focus Taiwan

New supercomputer to accelerate Taiwan’s animation computing

Taipei, Feb. 28 (CNA) A new supercomputer developed by the National Center for High-performance Computing (NCHC) will be launched in the near future to help reduce the computation time required in the production of animation and special effects.

Formosa 4, Taiwan’s largest self-built cloud-computing system, is undergoing its final test, said Alpha Wang, manager of the planning and promotion division at the NCHC.

The system, which encompasses a graphic processing unit (GPU) cluster and is located at the Tainan branch of the NCHC, is expected to come online in mid-June, she said.

“Usually it takes about one year to finish the computation of some complicated animations and special effects,” she told CNA in a telephone interview recently.

“Formosa 4 will be able to shorten the time and help companies introduce their works earlier,” she noted.

The Formosa series has established a “Render Farm” platform to provide cloud-based animation and special effect rendering services for local film and animation industry, the NCHC said.

The Render Farm, officially launched in November 2011, has subsequently integrated a dynamic simulation system and animation software to cultivate rendering techniques for special effects, according to the NCHC.

“Some companies are using the previous generation cluster computer, Formosa 3, to compute their animations,” Wang said, without divulging the names of the companies due to confidentiality agreements.

Costing NT$37 million (US$1.25 million), Formosa 4 adopted a hybrid computing framework combining a central processing unit (CPU) and GPU to further reduce construction costs and increase energy efficiency.

It has an optimal performance of 70 teraflops (trillion floating point operations per second), nearly nine times faster than the 8 teraflops of Formosa 3, which was launched in August 2011.

In November last year, Formosa 4 was ranked 234th on the 38th TOP500 supercomputer list released in the SC11 Conference in Seattle based on internal testing that had been conducted up to that point, an indication of Taiwan’s strength in cluster and parallel high-performance computing research.

http://focustaiwan.tw/SearchNews/hyDetailws.aspx?qid=201202280002&q=computer

New from the Focus Taiwan

NCC shows it is blind to needs of the public

Last Wednesday, the National Communications Commission (NCC) announced plans to shut off the analogue TV signal, region by region, starting on May 7, ostensibly in the interests of maintaining viewers’ rights. The commission should carefully consider regional differences, based on the actual needs of urban and non-urban areas, in deciding the date it shuts off the signal, as well as the nature and level of assistance it offers.

First of all, the commission calculates the number of households in the various regions that will be affected by the switch, based on a national average of 1.8 percent. However, there is more to the story than this figure suggests.

In fact, only 43 percent of households in Chiayi County have cable TV installed. Fewer households in non-urban areas have cable installed compared with those in urban areas and the government policy of making the switch to digital for terrestrial TV is, consequently, going to be felt more keenly in these non-urban areas.

The commission is disregarding that, although there are fewer households in non-urban areas, the actual number that will be affected is greater. It has announced that the timetable for the switch will see the analogue system shut off first in these non-urban areas — where the impact is going to be greatest — and later in the urban areas — where it will have less of an impact. It is mind-blowing that the NCC could be so blind to the needs of the public and force these changes upon them.

Second, since the government is expecting the taxpaying public to foot the bill for all this, it could at the very least come clean about how it would benefit them. It is said that the shift to digital would lead to more channels and higher quality programming with more varied content. However, will the general public really see any of this?

The viewers who are to be most affected by the digital changeover are those without cable or multimedia-on-demand installed and those who do not watch TV over the Internet. They will have to buy a set-top box (STB) or a TV set with an internal receiver before they will be able to watch TV. A digital STB costs about NT$2,000. What percentage of a household’s income is that? A traditional TV aerial costs between NT$300 and NT$600 and with that you would have been able — prior to the switch — to receive any TV signal for life. Now, because of a change in national policy, if people want to watch TV they are obliged to buy another aerial. This is extremely unfair to people living in areas that have older populations and lower household incomes, and who are less affluent.

Policymakers’ failure to take a bottom-up problem-solving approach has already led to urban/rural inequality in household incomes, employment opportunities and public services. It looks like the same flawed approach will lead to inequality in access to broadcast signals. The public has the right to free access to information and terrestrial TV is a public service that the government is obliged to provide for the sake of the public’s right to know.

Of course, the government needs to oversee the switch from analogue to digital and the policy involves a wide variety of different aspects, including technical factors, industrial development and the national interest. However, when the implementation of the policy conflicts with public interest, it is time to look again at the government’s core values in governing the nation and where it places them on its list of priorities.

The cost of the shift to digital should not be borne by the public, especially not when the brunt of it is to be visited on the poor and the vulnerable.

http://www.taipeitimes.net/News/editorials/archives/2012/02/29/2003526609

News from The Taipei Times

Taipei MRT to unveil free battery-charging stations

Taipei Rapid Transit Corp (TRTC) will establish battery-charging zones at MRT stations for mobile phone users, which it plans to offer as a free service to passengers beginning next month.

TRTC general manager Tan Gwa-guang (譚國光) said the company would set up charging equipment around the stations’ wireless Internet zones to offer the free service to mobile phone users. It said the sockets would first be set up at major MRT stations, such as Zhongxiao Fuxing, Taipei Main Station and Taipei City Hall.

The TRTC decided to offer the service following a recent incident in which a man was charged with grand larceny for using electricity to charge his cellphone without permission at Danshui MRT Station in December last year.

A police officer on patrol discovered the man, surnamed Wang (王), while he was charging his phone, and arrested him.

The case sparked disputes on whether using electricity inside stations should be considered larceny.

The TRTC originally said it would try to dissuade passengers from using electricity inside MRT stations before calling for the police.

The prosecutor in Wang’s case said the penal code covering grand larceny offenses was applicable because it states a person caught committing larceny “at a station or wharf, airport or within another vehicle, vessel or aircraft for public transport on water, on land or in the air” shall be sentenced to imprisonment for no fewer than six months, but no more than five years, and will be fined an amount not exceeding NT$100,000.

Amid discussions of Wang’s case, Taipei Mayor Hau Lung-bin (郝龍斌) instructed the TRTC to offer free battery-charging services to passengers under the condition that they do not affect MRT operations and public safety.

Tan said the TRTC currently offers free telephone cards for passengers to use in times of emergency and there are sockets inside MRT stations for electronic wheelchairs.

The TRTC does not intend to limit the time for the battery-charging service, but will advise passengers to only use the service in the case of an emergency.

http://www.taipeitimes.net/News/taiwan/archives/2012/02/23/2003526179

News from The Taipei Times

 

HTC, Asustek to unveil products at mobile show

Taiwan’s HTC Corp (宏達電) and Asustek Computer Inc (華碩電腦) will hold press conferences shortly before the opening of the Mobile World Congress (MWC) in Barcelona, Spain, to attract the attention of the smart device industry.

HTC, the world’s fourth-largest smartphone maker by volume, has invited media to an event scheduled for tomorrow evening at Cupula Las Arena to “see what’s next,” according to an e-mailed statement. Based in Taoyuan, Taiwan, HTC is expected to launch a quad-core tablet computer, along with two new smartphones powered by Google Inc’s Android 4.0 operating system (OS) and Long Term Evolution (LTE) high-speed broadband technology, said local media reports.

HTC chief executive officer Peter Chou (周永明) will deliver a keynote speech at the congress on Wednesday on “Mobile OS & Applications,” followed by a panel discussion with Nokia Oyj president and CEO Stephen Elop and Electronic Arts CEO John Riccitiello.

In a separate invitation, Asustek said it would hold a MWC press conference at noon on Monday. The invitation was attached to a picture of its new Padfone — a hybrid device that is a 4.3-inch smartphone and 10.1-inch tablet.

The launch of the Padfone, powered by a quad-core processor from Nvidia Corp. and the latest Android 4.0 OS, was delayed by Asustek until the first quarter of this year, which means that it missed the US Thanksgiving and Christmas shopping holidays.

The MWC, which runs from Monday to Thursday, is scheduled to cover topics such as mobile operator strategies in developed and developing markets, cloud computing, connected consumers, mobile money, mobile OS and applications, and next-generation networks and technologies, the GSM Association (GSMA) said.

Spanning more than 220 countries, the GSMA comprises nearly 800 of the world’s mobile operators and more than 200 companies in the broader mobile “ecosystem” including handset makers, software companies, equipment providers, Internet companies, and media and entertainment organizations.

Steven Hartley, a telecommunications company (TELCO) strategy analyst at research firm Ovum, said the progress made by operators in responding to the increase in mobile data traffic will be interesting to note at this year’s event.

“Operators’ growing realization of their position in the ecosystem means that the watchwords at MWC will be ‘partnership’ and ‘co-operation’ as TELCOs look to minimize the impact that mobile data traffic growth will have on their profitability,” Hartley said in a recent report.

“Although there will be more LTE announcements, we do not expect LTE to be portrayed as the ultimate answer to operators’ problems. Instead, it will be one part of the wider solution,” he said.

http://www.taipeitimes.net/News/biz/archives/2012/02/25/2003526296

News from The Taipei Times