In a move that will push Taiwan's 3G development further, the government is planning to provide a five-year tax break to service providers. Such incentives are forecast to result in a net reduction of NT$545 million (US$16.3 million; US$1=NT$33.5) in tax revenue, yet create a 3G market valued at approximately NT$1.1 trillion (US$34.3 billion) by 2017.

 

Although 3G licenses were released in 2002, the tax incentives will likely be retroactive to 2001 and extend to 2004, given that most investments were made before the license issuance.

 

The government's inclusion of 3G services in the industry promotion scheme is welcomed to participating operators, who are still at the early stage of the next-generation mobile business. Currently, Taiwanese operators developing 3G services include TCC (Taiwan Cellular Corp.), Far Eastone, Chunghwa Telecom, APBW (Asia Pacific Broadband Wireless Communication), and Vibo.