Wednesday, February 23, 2011

Taiwan's Chunghwa Grows 2.1% for 2010

Taiwan's Chunghwa Telecom's total consolidated revenue for the full year 2010 increased by 2.1% year-over-year to NT$202.49 billion, of which 44.0% was from the mobile business, 12.1% was from the Internet business, 34.9% was from the domestic fixed business, 7.7% was from the international fixed business, and the remainder was from others. Despite the National Communications Commission (NCC) tariff reduction that became effective from April 1, 2010, Chunghwa maintained its growth pattern, due mainly to an increase in mobile VAS, handset sales and internet services.

For the mobile business, total revenue for 2010 amounted to NT$89.04 billion, representing a year-on-year increase of 2.9%, which was mainly due to growth in mobile VAS revenue relating to smartphone promotions and handset sales.

Chunghwa's Internet business revenue increased by 3.5% year-over-year to NT$24.48 billion in 2010, mainly attributable to growth in the number of broadband subscribers and the migration of ADSL subscribers to fiber solutions.

For 2010, domestic fixed revenue totaled NT$70.69 billion, representing a decrease of 1.1% year-over-year. Local and Domestic Long Distance (DLD) revenues decreased by 2.9% to NT$32.25 billion and 10.2% to NT$6.65 billion year-over-year, respectively. The decrease in local revenue was mainly due to mobile and VOIP substitution. The decrease in DLD revenue was also a result of mobile and VOIP substitution, as well as reflecting the mandated tariff reduction.

Broadband access revenue, including ADSL and FTTx, increased by 2.1% year-over-year to NT$20.32 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.

International fixed revenue increased by 2.6% to NT$15.64 billion, primarily due to growth in leased line revenue.