11.14.2001
Uninspiring outlook on ADSL business

• Although monthly revenues for Taiwan Cellular Corp. (TCC) and Chunghwa Telecom (CHT) declined after the summer peak season and due to Typhoon Nari, revenues in the first 10 months reached 80% of full-year targets for both companies (up 10.5% YoY for TCC). TCC’s earnings have continued strong, with pretax at NT$15.5bn, or 91% of target (EPS NT$4.22). CHT is boosting user numbers by offering rebates on low price handsets, while TCC is doing the same through TransAsia Telecom (acquired July) in the south of Taiwan and to existing heavy users in the rest of the island. We are positive on these initiatives.