10.23.2001
Strengthening tie-in with TFN

• Both Taiwan Cellular Corp. (TCC, Taiwan’s no.1 cellular player) and Taiwan Fixed Network (TFN, unlisted, the largest private fixed-line operator in Taiwan) plan to increase their mutual share holdings and may eventually merge. TFN is currently TCC’s largest shareholder with 14.7%. The two companies, which already share four subsidiaries handling billing, customer service, engineering and directory services, will form another JV later this year to provide more telecom services. The aggressive team-up will be named “Taiwan Telecom Group”, indicating the intention to position itself as Taiwan’s leading telecom group. The group will also seek to expand operation in China. We are upbeat on this strategy and maintain our Strong BUY recommendation.