Chunghwa Eyes Chinese Expansion

Taipei-based Chunghwa Telecom Co. Ltd., recently announced its plans to enter into an agreement with Chinese telecom operators in order to provide value-added services and other application support to the Chinese subscribers. The agreement will allow the company to seize the $33.3 billion possibility in the lucrative Chinese cloud computing market.

Chunghwa Telecom is the largest telecom service provider in Taiwan mainly dominating the fixed-line service of the country. It is as well the leading wireless and Internet/Data service provider in Taiwan.

Currently, Chunghwa has witnessed significant subscriber growth for its mobile Internet services due to a rising demand for 3G mobile broadband and smart-phones in Taiwan. Itis as well conducting live trial runs of Long Term Evolution networks using Nokia Siemens Network solutions. The company seeks to develop a super-fast straightway-generation mobile broadband network that will act as a natural upgrade for its existing WCDMA networks. Chunghwa decided to implement LTE in 2011 in Taiwan. In addition, aggressive rollout of FTTx has positioned the company ahead of its competitors.

Despite such positive traits, the company is losing revenue in its Fixed-line Services segment. In addition, saturated domestic telecom market coupled with regulatory changes may act as headwinds for the company going forward.