Taiwan market: 7-Eleven scores points in stepping into MVNO business

President Chain Store, the operator of 7-Eleven chain in Taiwan, on July 16 announced that its operation of MVNO (mobile virtual network operator) pre-paid card service has attracted 50,000 subscribers since its launch in January 2008 and the number is expected to reach 150,000 at the end of 2008.

President obtained a MVNO license in late 2007 and cooperated with Far EasTone Telecommunications (FET), a mobile telecom carrier in Taiwan, specifically for MVNO business operation, the company indicated. FET supplies mobile phone numbers in wholesale as well as provides its mobile communication infrastructure and customer service support, President Chain pointed out.

FET, Chunghwa Telecom (CHT) and Taiwan Mobile (TWM), the top three operators of mobile communication services in Taiwan, currently have 1.30 million, 570,000 and nearly 650,000, respectively, pre-paid card users, according to industry sources. President Chain expects its MVNO to rank fourth in the Taiwan market of pre-paid card mobile communications next to FET, CHT and TWM, the company said.

In addition to President Chain, Arcoa and Aurora Telecom are two other leading MVNOs in Taiwan, with nearly 100,000 and about 20,000 subscribers respectively at present, the industry sources indicated. Family Mart, the second largest convenience store chain in Taiwan, and Carrefour, the largest hypermarket in Taiwan, are each applying for a MVNO license, with TWM and CHT being the mobile telecom partners respectively, the sources pointed out.

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