Chunghwa Telecom Co. Ltd. (CHT), the largest integrated telecom services provider in Taiwan , raised its capital expenditure budget for 2010. The company pegged its full-year 2010 cap ex at $937 million compared to $875 million in 2009. The primary reason for the increase is to expend its nationwide fiber-optic networks.
Chunghwa will invest $422 million towards building FTTx (fiber-to-the-home/premises) networks in 2010 compared to $375 million in 2009. Management hopes to add 10 million fiber-based subscribers to its customer base during 2010. The company is building large-scale fiber-to-the-home (FTTH) and fiber-to-the-building (FTTB) access infrastructure and is aiming to provide both of these facilities to 75% of Taiwan ’s population by 2011.
This strategy will transform switching, backbone, and access systems as the existing class-4 and class-5 circuit switches migrate to IMS. The backbone network will adapt MPLS advancement and mobile access will be upgraded to HSPA+ technology to enhance mobile Internet applications. Chunghwa has decided to launch HSPA+ 3G services from 2010. Through HSPA+, the company will be able to offer 21 Mbps mobile broadband download speed to its customers.
Chunghwa also decided to spend $93.7 million for routers, severs, and switches in preparation for its cloud-computing service. The company will replace the operating servers at its offices with cloud-computing servers and has designated its ISP subsidiary Hinet to offer cloud-computing leasing service. Chunghwa has taken a plan to build an Internet data center at a cost of $406 million. The building will start operation in 2012.
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