User:Amanda Truth/Telecommunications in Taiwan

Article Draft

Early History

In 1877 telecommunications was first introduced to Taiwan (ROC) as a result of the global expansion and influence of Western technological development and economic systems. This development can be classified within the Second Industrial Revolution, or in other words the Technological Revolution. More specifically, the first telegraph line was constructed in Southern Taiwan. Within a decade over 2,200 km of telegraph lines were constructed and in service throughout Taiwan. Up until World War II, this Technological Revolution initiated the groundbreaking development of different mass communication and production methods around the world. Innovations such as the wire telegraph, the wireless telegraph, and the telephone were the first to spread to China and Taiwan. At this time the Qing dynasty governed Taiwan (1683 - 1895), and they invested in this industry by establishing communication lines across the nation—first for the military and then for the general public. The end of this early period can be marked by the annexation of Taiwan to Japan in 1895, in which after Japan introduced large scale modernization efforts.

Influential Figures

Sun in his official portrait, 1978

Sun Yun-suan

Sun Yun-suan (孫運璿) played a pivotal role in shaping Taiwan's telecommunications and technological advancement during the 1970s and 1980s. Serving as Minister of Economic Affairs from 1969 to 1978 and later as Premier of the Republic of China from 1978 to 1984, he was instrumental in transforming Taiwan into a high-tech economy. Under his leadership, Taiwan undertook major infrastructure projects, including the development of Chiang Kai-shek International Airport and the Sun Yat-sen National Expressway, both critical for the nation's modernization. Sun also spearheaded the establishment of the Industrial Technology Research Institute (ITRI) and the Hsinchu Science Park, which became the backbone of Taiwan's booming semiconductor industry. Additionally, he championed investments in integrated circuit manufacturing, laying the groundwork for Taiwan’s dominance in modern telecommunications and global tech industries.

Lee Teng-Hui

Lee Teng-Hui

Lee Teng-hui (李登輝) was the president of Taiwan from 1988 to 2000. He is credited with leading Taiwan down the road to sovereignty, Lee Teng-hui’s 12 year presidency coincided with Taiwan’s rapid democratization and economic transformation, providing a window for major telecom reforms. The telecommunications industry in Taiwan was a tightly controlled monopoly run by the government’s Directorate General of Telecommunications (DGT).  Only a few years after being sworn in Teng-hu initiated a six-year national development plan with the goal of speeding Taiwan’s modernization. This development plan included a priviatiazion efforts these effort resulted in privatization of Chunghwa Telecom Company (CHT) which left the DGT as a purely regulatory agency. The government under Lee Teng-hui lifted DGT’s monopoly on equipment and allowed private sales of telephones, fax machines, and modems​. Value-added network (VAN) services (such as electronic data interchange and email services) were also opened to private providers in the late 1980s and early 1990s​. These incremental changes laid the groundwork for broader reform by demonstrating that private involvement could improve telecom industry. Therefore, Lee’s leadership was pivotal in liberalizing the telecommunications sector and ending the state’s monopoly.

Leading Organizations/Companies

ChungHwa Telecom Logo

ChungHwa Telecom, CHT

ChungHwa Telecom (中華電信）is the largest telecommunications company in Taiwan, originally established as a government-owned entity before being privatized in 2005. ChungHwa Telecom underwent a gradual transition from a state-owned enterprise to a privatized entity, with over 50% of its shares held by private owners by 2005. The company’s privatization was intended to enhance competitiveness in a liberalized market, yet issues such as bureaucratic inefficiencies, cultural resistance, and stock sale complications hindered a smooth transition. Privatization allowed for technological advancements and increased market responsiveness which allowd the company to expand beyond traditional voice and data services to include mobile communications, interactive multimedia, and digital content platforms, such as its MOD (Multimedia on Demand) service. Chunghwa Telecom’s business strategy aligns with the concept of “multiple screens and a cloud,” allowing users to access content across various devices. A key factor in its competitive edge is its patent portfolio, which focuses on data switching networks, secure communication, and digital TV, among other areas. Following privatization, the company adapted its patent strategy by considering whether innovations should remain trade secrets, be commercialized, or be filed internationally. ChungHwa Telecom has become the largest telecommunications company in Taiwan through these methods.

Taiwan Mobile Logo

Taiwan Mobile (台灣大哥大）

Taiwan Mobile, and its subsidiary Taiwan Fixed Network Co., Ltd. (台灣固網光纖寬頻電信及圖), is the second largest telecommunications company in Taiwan after ChungHwa Telecom. Established on February 25, 1997, the company has transformed into an "information, communication, and technology" (ICT) provider, one which offers custom services to consumers under the brand name "Taiwan Solution". Formerly known as Pacific Cellular Corporation (太平洋電信事業股份有限公司), Taiwan Mobile also has many affiliated companies under the same parent company, Fubon Financial Co. (富邦金融控股股份有限公司), such as TWM Broadband (offering services such as paid television, broadband internet access, and Fixed-Mobile Convergence (FMC)), TT&T (customer service provider), and wholesale website momo.com. As one of the top 3 telecom providers in Taiwan, Taiwan Mobile provides 5G, high quality internet for to 95% of the population. In December 2023, Taiwan Mobile merged with Taiwan Star Telecom (台灣之星電信股份有限公司), focusing on expanding their 5G program and improving green energy consumption within the communications industry.

Social Impact

Prior to many of the aforementioned economic, industrial, and technological strides of the late 19th century and 20th century, Taiwan had existed as a relatively poor and underdeveloped island. Currently, its telecommunication industry is among the most competitive in the world. Such rapid developments naturally arrived with various sociopolitical implications for the Taiwanese. For example, in the late 20th century and early 21st century, there was a widespread governmental push to send Taiwanese youth overseas for their education in order to encourage and maintain innovation. This prioritization of development, particularly through the Western lens, may have altered and will continue to alter "family and community structure, and may either strengthen or undermine those structures, especially in areas that reach technology saturation." It is difficult to fully understand the long-lasting consequences of rapid development in Taiwan at this point, but a wide range of cultural and social reactions to their increasingly technology-based society may arise in the coming years. In order to manage these potential consequences, the Taiwanese government makes active efforts to encourage access and availability. For instance, there is a disparity between development in rural, specifically regions with high indigenous populations, and urban areas. In order to address this digital divide, the Taiwanese governments is looking to increase the spread of ICTs to these underserved regions. This targeted spread of ICTs will also be applied to other underserved populations, such as the elderly and the handicapped.