Chunghwa Telecom Vows to Earn Over NT$45B. in 2009

Taipei, Dec. 15, 2008 (CENS)--Top executives at Chunghwa Telecom Co., Ltd. recently vowed the company will earn at least NT$45 billion (US$1.36 billion at US$1:NT$33) in 2009, exceeding the NT$43.59 billion (US$1.32 billion) planned for 2008.

The company's chairman, L.J. Lu, pointed out that its capital expenditure for 2009 would total NT$31 billion (US$939 million), slightly down from 2008's NT$32.7 billion (US$990 million). The capital will be mostly placed on optic-fiber network, next-generation network and 3G projects, with optic-fiber project alone to require over NT$10 billion (US$303 million) in investment.

Lu noted that the festering economic recession and the further 4.88% rate cut on mobile service demanded by National Communications Commission (NCC) would make the island's telecom-service market gloomy in 2008 although the global economic recession would deal a slighter blow to the industry than to other industries.

Hit by the recession, AT&T recently announced it would cut 12,000 jobs while Telecom Italia said it would slash 8,000 jobs.

In 2009, Chunghwa Telecom will focus on information-security, energy-saving, call-center, private-branch exchange, and intelligent-transport system services in its new market strategy. The company recently won the contract to supply the Taipei City Government with bus monitoring system. Revenue from enterprise users will account for one third of the company's NT$186.2 billion (US$5.64 billion) revenue for this year. The company plans to increase revenue from this sector to NT$70 billion (US$2.1 billion) next year.