Wednesday, August 25, 2010

Taiwan's Chunghwa Sees Further FTTx Substitution for ADSL

Taiwan's Chunghwa Telecommunications reported total consolidated revenue for Q2 2010 of NT$49.7 billion up 3.3% year-over-year, of which 34.9% was from its domestic fixed business, 44.5% was from its mobile business, 12.2% was from its Internet business, 7.5% was from its international fixed business and the remainder was from other business segments. The company credited the year-over-year increase to Taiwan's economic recovery and its own marketing efforts. During the period, overall CAPEX spending was down 7.8% and the company saw continued migration of its broadband customers from ADSL to FTTx.


Some highlights:

  • Domestic fixed line business revenue decreased of 1.1% year-over-year. Of this, local revenues decreased by 2.2% mainly due to mobile and VOIP substitution. The 12.6% decline in domestic long-distance revenues was also due to mobile and VOIP substitution, and the interconnection fee adjustment at the end of 2009.


  • Broadband access revenue, including ADSL and FTTx, increased by 1.9% year over year to NT$5.0 billion. Although ADSL access revenue decreased as more ADSL subscribers migrated to fiber solutions, the decrease was fully offset by growth in FTTx access revenue. Chunghwa believes that this migration will continue as customers continue to demand increased bandwidth, and that broadband revenue will therefore increase over time.


  • Mobile revenue increased by 6.5% year over year to NT$22.1 billion, mainly due to growth in handset sales and mobile VAS revenue related to our smartphone promotion.


  • Internet revenue increased by 7.0% to NT$6.0 billion, mainly attributable to Internet services growth, which was driven by the increase in broadband subscribers and the migration of ADSL subscribers to fiber solutions.


  • International fixed line revenue decreased by 2.3% to NT$3.7 billion, mainly due to VOIP substitution and market competition that was partially offset by growth in leased line revenue.


  • Total capex for the second quarter of 2010 amounted to NT$5.2 billion, representing a decrease of 7.8% year-over-year. Of the NT$5.2 billion in capex, 63.1% was spent on the domestic fixed communications business, 23.1% on the mobile communications business, 6.8% on the Internet business, 4.8% on the international fixed communications business and the remainder was used for other purposes.


  • As of the end of June 2010, fixed-line subscribers totaled 12.4 million.


  • Total broadband subscribers amounted to 4.3 million as of June 30, 2010, accounting for 82.2% of market share. Chunghwa continued its efforts to migrate ADSL subscribers to FTTx solutions. By the end of the second quarter of 2010, there were 1.85 million FTTx subscribers, accounting for 42.8% of Chunghwa's total broadband subscriber base.


  • By the end of the second quarter of 2010, the number of ADSL and FTTx subscribers with a service speed greater than 8 Mbps reached 2.2 million, representing 50.9% of total broadband subscribers, compared to 48.8% at the end of the first quarter of 2010.


  • HiNet subscribers totaled 4.07 million at the end of the second quarter of 2010.


  • The MOD (IPTV) subscriber number is over 720 thousand up to now.


  • As of June 30, 2010, Chunghwa had 9.4 million mobile subscribers, an increase of 4.5% compared to 9.0 million at the end of the first half of 2009.


  • Chunghwa had 5.1 million 3G subscribers at the end of June 2010, accounting for 53.9% of its total subscriber base.
http://www.cht.com.tw

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