08.13.2001
Eastern Broadband extends special rates to Dec.

• Development: Eastern Broadband Telecom (unlisted) decided to extend special rates from end of Aug to end of this year. The firm suspects Chunghwa Telecom (2412.TT) may lower rates in response to competitive pricing among mobile operators.

• Analysis: We expect the other two private fixed-line operators, Sparq* (unlisted) and Taiwan Fixed Network (unlisted) to follow suit. As of late, private fixed-line carriers have been offering deep discounts in efforts to obtain market share. Sparq* currently charges the lowest rate of NT$1.30 per min. for US calls, 89% lower than Chunghwa’s going rate.

• Primasia View: We believe aggressive price cuts, especially long term discounts, will hurt all telecom players.