03.12.2001
Chunghwa already feeling heat from fixed-line competition

• Chunghwa Telecom (2412 'Chung Hua Dian') estimates February revenue at NT$15.2b, representing YoY and MoM decreases of 3.2% and 4.2%, respectively.

• Significant growth was reported in the mobile and data communications businesses, with respective YoY increases of 33.7% and 37.9%. However, fixed-line services saw revenue drop as the three new fixed-line companies, Taiwan Fixed Network Co., Eastern Broadband Telecom Co. and New Century InfoComm (all unlisted), are poised to enter the telecom market.

• The new fixed-line players are expected to wage price competition in order to gain a foothold in the market. We expect Chunghwa will experience pressure on prices and market share and will thus see further revenue decline in its fixed-line segment once the new operators start to provide services in April.

AngelLo@Primasia.com +886-[0]2-2547-8865