Chunghwa invests in converged digital content

18 Oct 2007

Chunghwa Telecom has announced a plan to buy a 30% stake in Kkbox, the online digital music subsidiary of Taiwan’s Skysoft, to increase its range of converged content services for its broadband, mobile and IPTV subscribers, reports the Taipei Times. The deal would mark the latest move by the Taiwanese incumbent into new areas to boost value added revenues amid falling voice traffic. Chunghwa also intends to obtain a seat on Skysoft’s four-member board, it said. Value added services contribute 6.5% to Chunghwa’s mobile revenues, a lower figure than rivals Taiwan Mobile and FarEasTone. Chunghwa currently offers its broadband users a Skysoft subscription, and the proposed deal aims to extend the service to its mobile and IPTV subscribers. The operator has around 8.6 million mobile subscribers and 330,000 IPTV customers. Skysoft is jointly owned by Taiwan’s China Development Industrial Bank, Japanese financial service provider Orix Group and US software developer Adobe Systems. At the end of July this year Kkbox had 300,000 paying subscribers and 3.5 million registered users.

Taiwan, Chunghwa Telecom