Chunghwa Telecom
(CHT), the largest integrated telecom operator in Taiwan, has planned to launch HSPA+ 3G services from 2010. Through HSPA+, Chunghwa will be able to offer 21 Mbps mobile broadband download speed to its customers. The company has selected Nokia-Siemens Network, a joint venture between Nokia Corp. (NOK) and Siemens AG (SI) to upgrade its wireless networks to HSPA+ technology. Initially the users will be able to enjoy HSPA+ services through data network cards, USB dongles, and wireless modules. Later, this service will be extended to smart-phone, netbook and notebook.
Chunghwa has an existing collaboration with Nokia-Siemens Network to expand its 3G wireless networks of WCDMA and HSDPA. The 3G services are expected to facilitate the company’s continued leadership by offering a wider array of advanced features and higher speeds. Furthermore, Chunghwa has initiated its network transformation to a single, IP-based converged network to be completed by 2013.
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.
The Taiwanese telecom market is quickly approaching maturity and has become extremely competitive following telecom regulatory changes. Chunghwa competes in a tough environment with Taiwan Mobile Co. and Far EasTone Telecommunications Co. Ltd., the two other major service providers. The market size is comparably smaller than other regional country markets, with approximately 23 million potential customers. Therefore, advanced technology deployment is critical for Chunghwa’s operations to retain a leading edge. We expect fierce competition going forward as the Chinese giant China Mobile (CHL) has purchased a 12% stake in Far EasTone Telecommunications.
Read the full analyst report on “CHT”
Read the full analyst report on “NOK”
Read the full analyst report on “SI”
Read the full analyst report on “CHL”
Zacks Investment Research