44% spending cut for Vibo in 2008

3 Apr 2008

Taiwanese 3G mobile operator Vibo Telecom yesterday said that it planned to lower its capital spending by 44% this year to focus on further improving its network coverage with the aim of reaching 98% of the population by the end of 2008. The celco plans to spend TWD2 billion (USD66 million) mainly on adding new 3G base stations and upgrading some existing base stations to the HSDPA 3.5G standard. In 2007, Vibo spent TWD3.6 billion on new equipment. The company currently has 4,500 base stations nationwide, and hopes for another 1,000 to be operational by year end. It has about 600,000 subscribers at present and is planning to have more than one million by the end of this year. Company President Chang Feng-hsiung said that Vibo hopes for revenues of TWD6 billion in 2008, which would be a 43% increase on last year’s TWD4.19 billion. The company is also considering a new round of share sales to raise funds for operational expenses.

Taiwan, Taiwan Star (T STAR)