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Chunghwa Telecom strives to develop mobile value-added business.

Taiwan, Dec.28, 2012 (CENS) -- Chunghwa Telecom Co., Ltd., currently Taiwan's No.1 telecom carrier, will reported raise capital expenditure in 2013 to NT$37 billion (US$1.23 billion) and target NT$191.8 billion (US$6.39 billion) in total revenues, a slight increase from 2012's NT$188.8 billion (US$6.29 billion). However, Chunghwa's earnings per share dropped to below NT$5 (US$0.17), a new low in recent three years.

Chunghwa's capital expenditure in 2013 will hit a historical high of NT$37 billion (US$1.23 billion), with two major investments including 100Mbps optic-fiber lines and 42Mbps mobile network, showing broadband and mobile internet services as key drivers of the firm's revenues in 2013.

Chunghwa has 1.84 million ADSL users and 2.7 million optic-fiber users, totaling 4.54 million broadband users. The network service provider expects to add 500,000~600,000 new users of the 50Mbps~100Mbps high-speed network services in 2013.

As government expects all broadband services to reach 100Mbps by 2014, Chunghwa plans to lower the price of 100Mbps network in 2013. Despite the price reduction, revenues of HiNet in 2013 are predicted to grow from this year's NT$23.7 billion (US$790 million) to NT$23.8 billion (US$793.3 million), said HiNet's general manager F.G. Zhong.

Mobile phone business will becomes a major driver of Chunghwa's revenue growth in 2013. Chunghwa Telecom Mobile Business Group's general manager G.F. Lin said that due to underselling competition in the telecom industry, the company aims to boost the number of mobile network users and revenues contributed by mobile value-added services.

Chunghwa aims to have 2.5 million mobile network users by the end of 2012, and an additional one million to 3.5 million in 2013. Chunghwa Telecom Mobile Business Group is expected to see revenues in 2012 reach NT$76 billion (US$2.53 billion), challenging NT$78~79 billion (US$2.6~2.63 billion) in 2013.
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Title Annotation:Chunghwa Telecom Company Ltd.
Author:Wang, Andrew
Publication:The Taiwan Economic News
Article Type:Brief article
Date:Dec 28, 2012
Words:334
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