Chunghwa Telecom's CEO Discusses Q1 2012 Results - Earnings Call Transcript

Shyue-Ching Lu

Thank you, Fu-Fu. Hello, everyone. This is Shyue-Ching Lu, Chairman of Chunghwa Telecom. Thank you all for joining our first quarter 2012 earnings results conference call. Before President Chang reports on business development in more detail, I have some comments regarding CHT’s progress. As an integrated service provider, we maintain our market leadership in all of our major business segments.

On the first quarter, mobile value-added service continued to be our growth driver. We are optimistic about the mobile Internet market’s growth, and we offer various kind – marketing packages to meet customers’ demand. In addition to the (inaudible) we also offer discounted mobile Internet service to existing smartphone users in order to maintain and to further penetrate the market.

We’re also very keen on packet markets in maximizing the potential growth of synergies. For example, beginning March this year, we began to offer mobile voice service bundled with data plan for student use. We currently anticipate this campaign to be very positive in computing future revenue growth.

Along this growth mobile data usage, we are making efforts on the improvements of the network quality. Our efforts to enhance our mobile network and to promote Wi-Fi in order to offload the data traffic proved to be effective, this off-loading rate via home Wi-Fi product, along 40 times. Further, the rate for public Wi-Fi has not achieved the same rate as the home Wi-Fi. We are continuing the interface improvement in order to be more user-friendly.

We are pleased to report that our IPTV service are gaining traction due to the higher subscription number. The MOD ARPU increased 15.7% year-over-year in the first quarter. Moreover, the broadcasting service of 2012 Olympic Games will be launched on July 28. 2,000 hours of games are planned to be broadcasted over the 14 high-def released channels. And there will also be 500 hours of quality main program. We are pretty optimistic that this event will drive the growth of MOD subscriptions significantly.

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