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Chunghwa investing in next generation network this year
February 27, 2003
Taiwan’s Chunghwa Telecom, will begin investing in its 3G network
this year to prepare for its launch at end-2003.
Chunghwa bought a Taiwanese 3G license at $T6.7 billion back in
mid-January 2002.
"The Internet-access and mobile markets are saturated in Taiwan.
In order to provide more value to investors, we need to provide
more value to customers," Lu Shyue-ching, president of the state-run
firm, told an institutional investor conference.
Chunghwa will spend T$5.6 billion ($161 million) this year out
of an initial budget of T$20-30 billion to set up its 3G network,
with a planned roll-out for the end of 2003, said Hank Wang, the
company's head of finance.
The firm now gets over 50% of revenues from mobile services and
high-speed Internet access, while its one-time monopoly in fixed-line
services accounts for only 45%.
Underlining the shift in focus, Chunghwa's investment in fixed-line
this year will make up only 31% of this year's capital spending
budget of T$37 billion, falling from the 63% it commanded in 2000.
In contrast, high-speed Internet access spending will take up 45%
of the total investment budget this year, while spending on 3G is
set at about 15%.
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