"We're not making enough money," say telecom execs in Taiwan (I'm not naming names but I'd be surprised if they haven't all said this). What to do, oh lordy lord, what to do?

Buy more stuff!

Post-Chinese New Year shopping: We got fat knots in our pockets and we're looking to spend. So Taiwan Mobile Co., the #3 mobile carrier in the market, just announced it will pick up Taiwan Fixed Network Co. This gives the mobile company--which recently brought out the BlackBerry service... FINALLY--landline, cable and fixed line.

The analysts, the industry, the media all agree: It's a nice way to jack up some revenue. It's also a hand-in-the-pocket only-in-Asia-type deal. Taiwan Fixed Network owns a 30 percent chunk of Taiwan Mobile.

Insiders predict it will be a while before much gain is seen from the deal. Fixed Net's cable unit, Pacific Broadband, has got only 10 percent of the TVs rigged in Taiwan. Toss in 6 percent share of landline phones, 200K or so broadband customers. In short, it's not a whole heck of a lot.

But it does give Taiwan Mobile the opportunity to start packaging and locking in customers. This has worked in some markets and certainly can make users less willing to go elsewhere. I know if I could just pay and/or deal with one company for all my needs I'd be relieved.

But the real hum underlying the whole business: CONSOLIDATE.

These carriers have gotta move to buy each other out. The buzz is in the air. It's gonna happen soon. I, and a few in the know, are predicting that Taiwan Mobile will be one of the boys on the top of the hill when it all comes down. For now, that means: Who you buying next, kid?

More to come.
-jag

 

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