Businessweek

Chunghwa Telecom Co., Ltd. provides telecommunication services in Taiwan. Business Strategy The company’s business strategies consist of focus on its core strengths while expanding its scope of services to capture new growth opportunities; emphasize quality of service and customer satisfaction; and expand its business through alliances, acquisitions and investments. Segments The company’s business segments include Domestic Fixed Communications, Mobile Communications, Internet, and International Fixed Communications. DOMESTIC FIXED COMMUNICATIONS BUSINESS The Domestic Fixed Communications business includes local and domestic long distance telephone services, broadband access services, local and domestic long distance leased line services, multimedia on demand (MOD) services, and domestic other domestic services. The company provides local and domestic long distance telephone services in Taiwan. It also provides interconnection with its fixed line network to other mobile and fixed line operators. Local Telephone The company provides local telephone services to approximately 12.08 million customers in Taiwan. The company’s fixed line network reaches all homes and businesses in Taiwan. Domestic Long Distance Telephone The company provides domestic long distance telephone services in Taiwan. It provides ‘intelligent’ network services over its domestic long distance network, including toll-free calling, personal number, televoting, premium rate service and VPNs. The company also focuses on offering its customers value-added services and flexible tariff packages. Broadband (ADSL+ and FTTx) Access The company provides broadband Internet access through connections based on ADSL and its FTTx technology. The majority of its FTTx deployments consist of fiber-to-the-node with fiber-to-the-building deployments. The company provides broadband access services to other Internet service providers that do not have their own network infrastructure, and its broadband customers also include customers that use the company for the broadband data access line and choose another provider for Internet service provider services. It had approximately 2.1 million customers, as of December 31, 2011. The company provides FTTx Internet services, with downlink speeds of 10, 20, 50 and 100 Mbps. It also provides FTTx access services to other Internet service providers that do not have their own network infrastructure. Of the approximately 2.40 million FTTx customers as of December 31, 2011, approximately 2.13 million were also its HiNet subscribers. The company offers various promotional packages to encourage migration of its ADSL subscribers to its FTTx service. The company’s ADSL service offers downlink speeds that range from 1 Mbps to 8 Mbps and uplink speeds that range from 64 kilobits per second to 640 Kbps. Its FTTx service offers downlink speeds of 10, 20, 50 and 100 Mbps matched with uplink speeds of 3, 4, 5 and 10 Mbps, respectively. Leased Line Services—Local and Domestic Long Distance The company provides domestic leased line services in Taiwan. Leased line services involve offering lines that allow point-to-point connection for voice and data traffic. Leased lines are used by business customers to assemble their own private networks and by telecommunications service providers to establish networks to offer telecommunications services. The company provides data transmission services to major corporate customers in Taiwan. It also provides leased lines to other mobile and fixed line service operators for interconnection with its fixed line network and for connection with in their networks. Wi-Fi Services The company offers wireless local area network service. As of December 31, 2011, it had a total of approximately 657,007 residential and business customers that lease its access points. In addition, the company has established 21,216 hot spots in public areas, such as convenience stores, airports and international convention centers, where individuals can access its wireless local area network. MOD Services The company offers MOD service in Taipei County and Keelung City. It expanded this