Taiwan Internet Report 2018

Taiwan Internet Report 2018

Taiwan has progressed among the ranks of advanced countries in terms of its Internet environment and its competitiveness, as exemplified in the performance of its Internet "hard power" such as infrastructure, equipment applications, and usage rates. Many opportunities are still present in applications and innovation for Internet "soft power." What are the Internet-related events that have yet to happen, those currently happening, and those that have already happened in Taiwan? Where do Taiwan's opportunities lie?

Research Summary and Main Findings

Research Summary and Main Findings

The Taiwan Internet Report aims to portray the development, application management, and overview of Internet access in Taiwan. It describes the overall Internet usage diagrams and user profiles in Taiwan and seeks to understand online trends and future development. The survey methodology combines both quantitative and qualitative methods including Computer Assisted Telephone Interviewing (CATI) and document analysis; this aims to improve the perspective of the survey, increase the range of references and expand the applications for the survey. The Report seeks to describe the overall situation of the Internet in Taiwan; it does so by expanding from Taiwan's Internet infrastructure to application levels, referencing network logical layers data such as domain names and IP/ASN allocation status and other objective environmental analyses, and collecting and comparing contents of secondary sources from other countries.

The estimated number of Internet users aged 12 and above reached 17.38 million people in 2018, and the estimated number of Internet users in the country has reached 18.66 million. The overall Internet access rate has reached 79.2%. The mobile Internet access rate has increased each year and exceeded 70% for the first time in 2018, while the wireless Internet access rate dropped by 15%. In terms of online services and applications, the usage rate of content media and social media are the highest for Internet users and both have exceeded 80% while the use of E-commerce has reached 60%. These are markets with more active online applications and growth. Although there are fewer applications and services in Taiwan, Internet users are familiar with the concepts of artificial intelligence and self-driving cars. This demonstrates a high level of market acceptability despite a lack of services provided.

Comparison of International Trends

Comparison of International Trends

Taiwan's Internet competitiveness is among the highest in the world. In addition to the high Internet access rate of its Internet users, comprehensive infrastructure, and high global competitiveness rankings, its E-commerce economy also continues to grow.

Overall Internet Usage Status

The personal and household Internet access rates rank among the highest in Asia.

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Network Logical Layer

Taiwan achieved the fastest growth in IPv6 in the world.

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Overview of Internet Service Applications

Taiwan's IT technology comprehensiveness ranked among the top 25.

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Key Opportunities for The Digital Economy

Key Opportunities for The Digital Economy

In terms of the three dimensions including government, industry, and Internet users, Taiwan has actively advanced the establishment of a digital innovation environment, promoted digital economic development, and established a solid foundation for industries. It also has abundant supply chain experience for smart products and active Internet users for online engagement. These are advantages for the development of the digital economy and smart applications.

  • Government

    • The government actively promotes the national vision of digital country and smart island.
    • Reduce the digital divide with public policy support while developing digital economy.
  • Industry

    • Enhance the integration advantages of hardware and software, virtual and reality based on the solid foundation of Taiwan's ICT industry.
    • Combine the industry innovation and the New Southbound Policy to promote the digital economy development.
  • Internet users

    • Enhance the current application service and explore the new application with the proper foundation of the mobile network.
    • Through the advantage of prosperous social communities to promote the smart devices usage and encourage the Internet content production.

Challenges for Online Applications in Taiwan

Challenges for Online Applications in Taiwan

As Internet technologies advance, people's lives have become inseparable from the Internet and related technologies and applications. The advancements have also gradually changed people's lives and consumption habits. Online services and applications can be divided into 11 types, including online service community applications, economic applications, and innovative Internet concepts.

The online service community applications include content media, smart device education applications, and online games. Online service economic applications include E-commerce, sharing economy, and fintech. Innovative Internet concepts include artificial intelligence, self-driving cars, and blockchains. Related applications and brands have been developed for domestic Internet services and applications, but there are fewer applications of innovative Internet concepts.

Four Major Future Strategies

Four Major Future Strategies

As advanced countries across the world gradually adopt the digital economy as the basis for advancing their nations and societies, the improvement of Taiwan's online soft power will be based on localized plans and development. Four crucial strategies shall be adopted to strengthen its advantages and transform its weaknesses.

Strategy 1: Strengthen Advantages in Online Media

Strategy 1
Strengthen Advantages in Online Media

Content media include videos and music. They are further divided into drama programs, live broadcasts, and films based on the content format and service operations. Please click "Learn More" to view an analysis of the usage status.

Strategy 2: Improve the Quality of E-Commerce

According to statistics (source), revenue from retail E-commerce in Taiwan reached NT$221.2 billion in 2016 and the annual growth rate was 12.3%. Another statistics also indicated that the online retail sales has reached a new height with the growth for 11 years consecutively. Though the E-commerce market in Taiwan is mature and stable, as the foreign competitors enter the market and consumer's options for purchasing from foreign websites are on the rise, the E-commerce market will be very competitive.

Strategy 2
Improve the Quality of E-Commerce

Strategy 3: Establish and Develop Smart Home Applications

Strategy 3
Establish and Develop Smart Home Applications

Taiwanese IT companies play key roles in the global smart speaker supply chain, but there are no leading products in the domestic market and very few users. The development is less rapid than development in the United States or China. In terms of demand, smart home products not only increase convenience but also provide support in an elderly-friendly home living environment in an aged society. In terms of the supply side of services, Taiwan has a solid foundation in hardware capabilities and background in the Chinese language. It has advantages for developing smart speakers.

Strategy 4: Expand and Invigorate Online Education

Strategy 4
Expand and Invigorate Online Education

The demand for education is high but the usage rate is low. Operators must break free of education based on formal curriculums and academic purposes while increasing the content for the education of skills and increasing usage rates.

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