Government considering Chunghwa change

24 Feb 2006

The Taiwanese government is reportedly considering raising the limit on foreign ownership of the country’s dominant telco Chunghwa. Current legislation prohibits foreign investors from holding a direct stake of more than 40% in Chunghwa. Dow Jones reports that Tony Teng, director general at the Department of Posts and Telecommunications, has said this week: “We haven’t made any decision yet, but raising the limit to 49% seems probable.” He did not give a schedule for any amendment. The change would bring Chunghwa into line with Taiwan’s other mobile operators, Far EasTone and Taiwan Mobile, which are already allowed to have 49% of their shares held directly by foreign investors. Chunghwa is the leading fixed line and mobile operator in Taiwan, with 13.26 million wireline customers and 8.16 million wireless subscribers at the end of 2005.

Taiwan, Chunghwa Telecom