Chunghwa Telecom, Taiwan’s incumbent telco, has reported its operating results for full-year 2008. Total revenues in the twelve months ended 31 December rose 2.2% from 2007 to TWD201.7 billion (USD5.98 billion) while costs and expenses increased by 4.4% to TWD143 billion. Net income decreased 6.7% to TWD45 billion. Lower income was partially attributed to a TWD1.2 billion financial asset impairment, a TWD1.7 billion employee bonus structure and a TWD5 billion rise in capital expenditure (CAPEX). The 20.1% rise in investment was mainly due to the deployment of a next generation network (NGN) which will supply high-capacity broadband services and link fixed and mobile networks, as part of the company’s long-term strategy for cross-platform convergence. Chunghwa expects CAPEX to remain between TWD30 billion and TWD32 billion over the next two to three years.
Chunghwa reported a 1.4% year-on-year growth in broadband subscriptions, to 4.3 million at the end of December. Fibre-to-the-building (FTTB) subscriptions, including the company’s multimedia-on-demand (MoD) offering, rose 49.8% to 1.07 million. FTTB subscriptions now account for 24.8% of total broadband subscriptions.