07.10.2001
Tecom expands foothold in China

• Development: Tecom is the first Taiwanese ADSL modem maker to be granted a license to sell the ADSL modems in the Chinese local retail market.

• Analysis: A definite positive for the company, even though revenue contribution may be minimal in 2001. Company focused on brand recognition and enhanced modem functions in order to gain share in the retail segment.

• Primasia View: About 50-60% of the company’s revenue is generated from handset sales. We expect poor performance from Tecom as retail handset sales remain sluggish for 2001.

BennyLo@Primasia.com +886-[0]2-2547-8869