GSMA calls for Taiwan to favor LTE

Dylan Bushell-Embling
14 Jul 2011

The GSM Association is pressing Taiwan to abandon its emphasis on Wimax manufacturing in favor of LTE and HSPA.

The industry body published a report prepared under commission by Analysys Mason, which claims that revenues generated by Taiwan's LTE technology sector will soon exceed those earned from the Wimax sector.

By 2015, global adoption of LTE will generate TW$27.3 billion ($934 million) for Taiwan's economy, compared to just TW$3 billion ($100 million) for Wimax.

“Given the smaller market size in terms of lower demand,” the report states, “it is in Taiwan’s best interest to focus on the manufacturing of HSPA and LTE equipment rather than Wimax equipment.”

Low levels of worldwide Wimax demand have hindered the government's plan to stimulate the economy by becoming the largest exporter of Wimax products, the report states.

GSMA Asia Pacific senior director Jaikishan Rajaraman said the government should instead be offering the aid to LTE equipment producers.

“It is essential that the Taiwanese government acts quickly to support manufacturers and allocate spectrum for LTE,” he said.

Taiwanese operators themselves are eager to deploy LTE, and adoption is forecast to exceed 2.5 million by 2015, the report adds.

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