Chunghwa Telecom hints at lowering Capex for current year

Chunghwa Telecom today said its Capex (capital spending) in Q3 2014 increased 2.2 percent to NT$7.9 billion.

Chunghwa Telecom invested 47.8 percent of total Capex for domestic fixed communications, 33.8 percent for mobile communications, 11.3 percent for internet, 5.8 percent on international fixed communications, and the remainder on others.

“It is possible to realize more than a 10 percent reduction in budgeted capital expenditures this year due to having our fiber broadband investment focus primarily on FTTH construction instead of network coverage,” said Rick L Tsai, chairman and CEO of Chunghwa Telecom.

Q3 revenue of Chunghwa Telecom decreased 1.0 percent to NT$56.14 billion. The revenue break up includes: 47.2 percent mobile, 12.2 percent internet, 32.2 percent domestic fixed, 6.8 percent international fixed, and 1.6 percent from other businesses.

Mobile communications revenue dipped 3.8 percent to NT$26.47 billion. It posed a decrease in mobile voice revenue mainly due to market competition and promotional packages and lower handset sales.


Mobile value-added services (VAS) revenue increased 22.1 percent to NT$8.95 billion, with mobile internet revenue, the largest contributor to VAS revenue, rose 29.0 percent.

Internet revenue of Chunghwa Telecom grew 2.2 percent to NT$6.88 billion.

Net income decreased 8.8 percent to NT$9.73 billion.

Chunghwa Telecom 4G

Chunghwa Telecom 4G is gaining momentum. In the most recent two months, 4G subscriber base grew. “We maintain our year-end target goal of acquiring 40 percent of the 4G market,” Tsai said in a statement.

Chunghwa Telecom targets to reach 90 percent of Taiwan’s population by the end of 2014 and up to 99 percent by year-end 2015 through 4G network deployment.

Baburajan K
[email protected]