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Local cellphone brands to benefit from subsidy plan

Local cellphone brands to benefit from subsidy plan

Taipei, Oct. 30 (CNA) An economic stimulus program that includes subsidizing mobile phone users to upgrade from the 2G to 4G network is expected to help increase sales of locally produced cellphones by 2 percentage points, an official at the Industrial Development Bureau said Friday. The sale of local brands of mobile phones has been at around 8 million units in Taiwan each year, and comprise 40 percent of the total domestic handset market share, said Yang Chih-ching (???), a division chief in the bureau. "If all of the consumers buy local brands (under this program), sales will be increased by 5 percentage points," Yang said. The subsidy program, to be implemented from Nov. 7 to Feb. 29 next year, will increase the number of 4G users from 7.93 million in July by 4.8 percent points in the three-month period, the bureau predicted. The new measure is part of an economic stimulus proposal announced by the Ministry of Economic Affairs on Friday to pump up consumption and boost economic growth at a time when Taiwan is facing a slowdown in exports due to weak global demand. Funds to the tune of NT$800 million (US$24.67 million) will be allocated for the plan, under which mobile phone users who upgrade from the 2G to 4G network will receive a NT$2,000 subsidy for the purchase of a 4G smartphone and a monthly subsidy of NT$200, for up to three months, to help pay their mobile phone bill. Up to 1.5 million 2G users can benefit from the offer, the ministry estimated. Yang predicted that the subsidy program for 2G users will boost the annual production value of the mobile phone industry to NT$4 billion. Meanwhile, Vice Economics Minister Shen Jong-chin (???) said that the subsidy will not be limited to local brands because Taiwan does not want to violate the rules set by the World Trade Organization which aim to ensure fair treatment of all trade partners under an open trading system. (By Huang Chiao-wen and Elizabeth Hsu)


Updated : 2021-09-19 01:02 GMT+08:00