Chunghwa says 3G will hit profits

19 Jan 2005

Taiwan’s dominant telco, Chunghwa Telecom, has warned that the cost of rolling out a 3G network may see its earnings fall for the first time in several years. The state-run company, which is Taiwan’s largest mobile operator with around 8.3 million subscribers, reported revenues for 2004 of TWD182.6 billion and a profit of TWD49.9 billion. However, Chunghwa’s chairman, Hochen Tan, said in a statement: “Increased operating costs, mostly from the new 3G operation, will make it difficult for us to boost sales. Likewise, earnings will not exceed that of last year.” The telco says that it is allocating around TWD2 billion for amortisation costs related to 3G equipment in 2005.

Taiwan, Chunghwa Telecom