Users anticipate CT discount plan
August 26, 2011 by Laura Reveley · Leave a Comment
If Chunghwa Telecom joins two of its major rivals — Far EasTone Telecommunications Co., and Taiwan Mobile Co. — in offering free on-net services, more consumers will save money as a result of the price-cutting measures, the sources said.
Free on-net services allow mobile subscribers to call other phone users using the same telecom operator for free, a pricing strategy used by local mobile phone companies to boost their subscriber base.
In the past, only smaller domestic telecom operators embraced the strategy in a bid to raise subscriber numbers.
In mid July, however, Far EasTone launched its own free on-net services, which triggered a price war amid escalating competition in the local mobile phone market.
Far EasTone hoped its new package, which has no time limits, would increase its customer base to more than 7 million by the end of this year from 6.5 million at the end of the second quarter.
Immediately after the Far EasTone offer, Taiwan Mobile unveiled a similar package for both voice and Internet service users who connected to others subscribing to the same network.
Due to the “killer” packages launched by Far EasTone and Taiwan Mobile, the sources said, many consumers have embraced high hopes that Chunghwa Telecom will soon follow suit, though the company has said it was still evaluating market conditions.
The sources said some telecom operators feared that free on-net phone services would adversely affect their bottom lines.
Far EasTone said, however, that the preferential offer has received a warm reaction from consumers and successfully attracted new subscribers to boost the company’s revenue.
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