07.31.2001
Chunghwa expanding GSM service

• Development: Chunghwa Telecom has signed a GSM contract with Nortel for facilities and equipment to upgrade the firm’s GSM capacity to 7m subscribers. Chunghwa is anticipating the launch of its GPRS service in August.

• Analysis: Expansion will focus on Gateway Mobile Switching Centers and GSM base-stations. Lately, Chunghwa has been aggressively pursuing growth strategies.

• Primasia View: This development has long-term implications, as new subs and heavy user accounts are generally difficult to acquire. Viability of new GPRS service will need to be tested for results. We continue to stick with our current recommendation.