Chunghwa to add Capex for optic-fiber network.

Taipei, Oct. 21, 2009 (CENS)--Chunghwa Telecom Co., Ltd. plans to increase capital expenditure on optical-fiber networks at annual rate of 30-50% next year, to around NT$13-15 billion (US$393-454 million at US$1:NT$33), in conjunction with its plan to sign up a net one million additional subscribers to its optic-fiber based Internet services.

Up to now, the Taiwan's No.1 telecom service provider has a cumulative 500,000 subscribers to the services, comprising around 11% of the company's total 4.3 million subscribers connected to its broadband Internet.

In light of Taiwan Mobile Corp.'s determination to quickly expand its share of broadband service market by offering 30% lower charge rates on ADSL services, Chunghwa is scrambling to introduce countermeasures including expanding its optical-fiber capacity.

As part of its optical-fiber expansion bids,Chunghwa will roll out broadband services boasting surfing speed at 50 megabits per second (Mbps) next year.

Over past few years, Chunghwa's annual investment in optical-fiber networks has remained around NT$10 billion (US$303 million).

Increases of Chunghwa's Optical Fiber Investment and Subscribers

                  Investment Capital       Net Subscriber Addition

2010 (forecast)   NT$13-15B                One Million
2009              NT$10B                   500,000
2008              NT$10B                   500,000
2007              NT$10B                   300,000-400,000
2006              Approximate NT$500,000   Some 100,000

Source: Chunghwa