Telecom operators in Taiwan expect 5G services' penetration rate in the local market to be at least 20% in 2021 and the percentage will go higher with competitive subscription deals for mid-range to entry-level 5G smartphones.

So far, Chunghwa Telecom (CHT) has a total of 500,000 subscribers for its 5G services with Far Eastone Telecommunications (FET) having 400,000 and Taiwan Mobile also 500,000.

Thanks to government policy support, the three telecom operators have already established over 4,000 5G base stations in Taiwan and their service subscriptions also picked up quickly after Apple's releases of the iPhone 12 series devices.

In 2021, the three telecom operators are expected to build a total of more than 25,000 5G base stations with an overall coverage rate reaching more than 80%, according to some market observers.

As Samsung Electronics and Xiaomi are keenly releasing mid-range and entry-level 5G smartphones priced below NT$10,000, the market observers expect users in Taiwan to be more willing to replace their existing smartphones, boosting each of the three telecom operators' 5G subscriber numbers to above one million by the end of 2021, and the penetration rate to between 20-30%.

Samsung Electronics Taiwan vice president Jacob Chen also noted that the Galaxy S21 series smartphones enjoyed strong sales in Taiwan thanks to telecom operators' aggressive promotions on 5G services. However, he believes the penetration rate is unlikely to pick up dramatically unless the operators can offer more price-friendly 5G deals that can significantly boost sales of sub-NT$7,000 smartphones.