Chunghwa Telecom Capex for Q2 dips 9.1 percent to NT$7.3 bn

Chunghwa Telecom today said its Capex (capital spending) for the second quarter of 2014 decreased 9.1 percent to NT$7.3 billion.

51.5 percent of Chunghwa Telecom Capex for Q2 was spent on domestic fixed communications, 31.4 percent on mobile communications, 8.9 percent on internet, 2.7 percent on international fixed communications, and the remainder on others.

Rick L Tsai, chairman and CEO of Chunghwa Telecom, said: “We believe that capital expenditures will be lower than what we previously budgeted due to greater operational efficiencies realized from reviewing capital utilization carefully as well as improved resource integration among business lines.

The telecom operator’s increased Capex on fixed communications is part of its strategy of encouraging FTTx migration. The number of FTTx subscribers reached 3.03 million, accounting for 66.7 percent of its total broadband users.

The number of subscribers signing up for speeds of 100Mbps or higher increased by more than 500 percent, reaching about 630,000.

HiNet broadband subscribers increased 0.4 percent to 3.79 million.

Chunghwa mobile subscribers rose 4.8 percent to 10.92 million. Its mobile Internet subscribers grew 46.6 percent to 4.65 million. Chunghwa accounted for 36.4 percent of the mobile internet market share as of June 30, 2014.

The company has 11.46 million fixed-line subscribers.


“We accelerated our 4G deployment and capital expenditure investment timeline so that we could offer our customers enhanced and faster user experience, and to gain an advantage over our competitors,” Tsai said.

Chunghwa Telecom is aiming to acquire at least 40 percent of the 4G market, and reach more than 90 percent population coverage by the end of 2015.

Meanwhile, Chunghwa Telecom second quarter revenues decreased 0.1 percent to NT$55.78 billion, which was comprised of 49.8 percent mobile, 11.3 percent internet, 30.9 percent domestic fixed, 7.0 percent international fixed, and 1.0  percent from other businesses.

Mobile communications revenue increased 3.4 percent to NT$27.78 billion. This was mainly due to the continual growth of mobile VAS revenue and handset sales, which offset the decrease in mobile voice revenue mainly due to market competition and promotional packages.

Internet business revenue increased 1.7 percent to NT$6.29 billion. The increase was primarily due to higher internet value-added service.

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