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Chunghwa Telecom plans to accelerate broadband construction.

Taipei, May 30, 2012 (CENS) -- Chunghwa Telecom may boost its capital outlay to NT$37 billion this year, a 10-year high, in order to achieve 100% coverage for 100M high-speed broadband network next year, two years ahead of the original schedule.

Chang Shan-cheng, minister without portfolio, pointed out yesterday (May 29) that President Ma Ying-jeou has instructed to accelerate construction on fiber-optic broadband network, so as to achieve full coverage of 100M high-speed broadband network by 2013, compared with the original schedule set at the end of 2015. The goal will include both fixed-line network and cable-TV network, according to Chang.

Chunghwa Telecom has been accelerating the pace of broadband-network construction in recent years. Last year, it announced plan to invest NT$200 billion in broadband construction in next 10 years. The company originally planned to invest NT$33.1 billion, mainly in broadband construction, this year and now plans to increase the amount by NT$4 billion, to NT$37 billion. Capital outlay will remain high next year, in order to achieve the government's goal of achieving full coverage for 100M high-speed broadband network by the end of 2013.

Chunghwa Telecom originally targeted achieving 20% coverage for 100M network this year, 40% next year, and 85% in 2015.

Chunghwa Telecom expressed the increase of capital outlay this year is still under planning and will need the approval of the board of directors. Institutional investors noted that expanded investments by Chunghwa Telecom in fiber-optic network will bring ample business opportunities to domestic fiber-optic and related equipment suppliers, such as Unizyx Holding, D-Link, and Alpha Networks.

At the end of last year, Chunghwa Telecom procured optical-generation VDLS2 customer premise equipment via open bidding, which was won by Unizyx and D-Link/Alpha. In pushing 50M high-speed fiber-optic Internet access service, Chunghwa Telecom is expected to procure more fiber-optic customer premise equipment this year.
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Publication:The Taiwan Economic News
Date:May 30, 2012
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