Chunghwa Telecom reports 58.6% rise in mobile users
By Ted Chen,The China PostTAIPEI, Taiwan -- Chunghwa Telecom yesterday reported its operating results for the first half of this year, yielding second-quarter earnings of NT$1.37 per share.
August 15, 2013, 12:07 am TWN
Revenues for the company in the second quarter reached NT$55.84 billion, up 2.6 percent year-on-year, while net income waned 7 percent year-on-year, falling to NT$10.64 billion.
In the first half, the company accumulated revenues of NT$112.45 billion, meeting 51.6 percent of this year's forecast target, and net income of NT$19.84 billion, a fulfillment of 52.8 percent of expectations.
The company stated that its performance is sustained by continued growth in the mobile market. Its competitive mobile data plan offerings and mid- to low-tier smartphone contract packages has successfully expanded its user base to 3.17 million subscribers, rising 58.6 percent year-on-year, while commanding 33.5 percent of the mobile market, said the company. In addition, mobile-related value added services saw a 35.1- percent rise in the second quarter.
Capital expenditure is expected to reach NT$37.2 billion this year; however, the company stated that the figure will be eclipsed by a significant amount next year, citing efforts in establishing the fourth-generation (4G) mobile broadband network.
The company stated that it is not actively pushing for its users to migrate from older to newer generations of networking technology, saying that it will ensure users of the second, third and fourth network generations remain supported in the future.
On the emerging technology voice-over-longterm-evolution (VoLTE), the company stated that implementation will not be feasible until Taiwan establishes 80-percent LTE network coverage.
On the upcoming bid for the 4G operating license, Chunghwa Telecom expects the 1,800-megahertz band to be heavily contested among competing prospects, as it has the most comprehensive coverage by networking equipment manufacturers, and is the most widely adopted bandwidth among major world markets.