Chunghwa Telecom Capex up 36 percent to NT$7.54 billion in Q2

Telecom Lead Asia: Chunghwa Telecom said its Capex for
the second quarter of 2012 grew 36 percent to NT$7.54 billion.


Of the NT$7.54 billion Capex, Chunghwa Telecom used 61.6
percent for domestic fixed communications business, 22 percent for mobile
business, 6.3 percent for Internet business, 7.6 percent for international
fixed communications business, and the remainder was for other uses.


Recently, Chunghwa Telecom selected Alcatel-Lucent to transform its
network in order to increase its speed, performance and efficiency.
Alcatel-Lucent will deploy its IP/MPLS solution, based on its 7750 Service
Router (SR) and 7705 Service Aggregation Router. Alcatel-Lucent will also
provide CHT with a set of comprehensive professional services including project
management, network design, installation and commissioning, software integration
and operations.


On Thursday, Chunghwa Telecom reported total net revenue
of NT$54.19 billion in second quarter, showing flat growth.


Mobile communications revenue increased by 10.7 percent
to NT$24.74 billion.


Chunghwa Telecom’s mobile value-added services (VAS)
revenue grew 33.6 percent to NT$5.04 billion.


Its handset sales revenue increased 34.9 percent to
NT$6.65 billion.


Internet revenue decreased 4 percent to NT$6.0 billion.


Chunghwa Telecom’s Internet VAS revenue increased 7.5
percent to NT$0.72 billion.


Domestic fixed communications revenue decreased 6.8
percent to NT$18.44 billion.


International fixed communications revenue increased 0.2
percent to NT$3.87 billion.


Net income totaled NT$11.27 billion, representing a 15.2
percent decrease.


In the first half, total net revenue increased 2.5
percent to NT$109.61 billion.


Net income in H1 totaled NT$20.76 billion, representing a
17.4 percent decrease.


Shyue-Ching Lu, chairman and chief executive officer of
Chunghwa Telecom, said its mobile VAS business continued its growth momentum
this quarter with revenue growing 33.6 percent year-over-year.


Lu said Chunghwa’s total net revenue for the second
quarter of 2012 was flat at NT$54.19 billion, of which 45.7 percent was from
the mobile business, 11.1 percent was from the internet business, 34.0 percent
was from the domestic fixed business, 7.1 percent was from the international
fixed business, and the remainder was from others.


Broadband access revenue, including ADSL and Fiber
connections (“FTTx”), decreased by 7.0 percent year-over-year to
NT$4.78 billion, primarily due to the company’s voluntary broadband tariff
reductions, as well as the mandated NCC tariff reduction.


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