Tuesday, October 30, 2007

Taiwan's Chunghwa: 26% of Broadband Lines Exceed 8 Mbps, 350K IPTV Users

Chunghwa Telecom, the incumbent operator in Taiwan, was serving 4.22 million broadband subscribers (including ADSL and FTTB subscribers) at the end of September 2007, a 6.3% increase compared to the same period of last year. At the end of September 2007, the number of ADSL and FTTB subscriptions with service speed greater than 8 Mbps reached 1.12 million, representing 26.4% of total broadband subscribers. There were 81,000 net HiNet FTTB additions in Q3, bringing the total number of HiNet FTTB subscribers to 391k.

Also, Chunghwa had 358k MOD (IPTV) subscribers, with 24k new subscriptions added during the third quarter; a 74.1% increase year-over-year.

Some additional highlight's from the Q3 2007 financial report:

  • Total revenue increased by 10.0% to NT$52.1 billion

  • Internet and data revenue grew 5.6%; ADSL & FTTB increased by 4.1%

  • Mobile revenue grew 1.4%; Mobile VAS revenue increased by 32.4%

  • Net income totaled NT$11.9 billion, an increase of 6.8%

  • Fixed-line declines have been decelerated over the past nine months, with total fixed-line revenue declining 2.6% to NT$45.9 billion, compared to the 6.4% decline in the first nine months of FY2006. International Long Distance revenue increased 4.4%, primarily driven by the significant revenue growth in international prepaid cards and the wholesale business. This was offset by the 3.9% Local revenue decrease and the 7.2% Domestic Long Distance revenue decrease, mainly due to mobile and VoIP substitution.

  • Capital expenditures totaled NT$15.8 billon for the nine months ended September 30, 2007, of which 83% was for wire line equipment (including fixed- line and Internet and data) and 15% was for wireless equipment. Capital expenditures were down 14.6% from the NT$18.5 billion for the nine months ended September 30, 2006, mainly due to a NT$3.4 billion decrease in mobile spending.

  • Chunghwa had 8.66 million mobile subscribers, with net additions of 75k during the third quarter. Chunghwa had 308k net additions to its 3G subscriber base during the third quarter, bringing total 3G subscribers to 1.99 million.