Chunghwa Eyeing 4G Networks - Analyst Blog

Chunghwa Telecom Co. Ltd. (CHT), the largest integrated telecom operator in Taiwan , is conducting live trial runs for the Frequency Division Duplex (FDD) version of Long Term Evolution (LTE) networks. The aim is to develop a super-fast next-generation mobile broadband network that will act as a natural upgrade for the company’s existing WCDMA networks. Chunghwa has decided to implement LTE in Taiwan in 2011.
 
Nokia Siemens Network, a 50-50 joint venture between Nokia Corp. (NOK) and Siemens AG (SI), is providing the LTE core network equipment and base stations for these trial runs. Chunghwa has an existing collaboration with Nokia Siemens Network to expand its 3G wireless networks of WCDMA and HSDPA. Last August, Chunghwa decided to launch HSPA+ 3G services from 2010 and selected Nokia Siemens Network to upgrade its wireless networks to HSPA+ technology.
 
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 Company and Far EasTone Telecommunications Co. Ltd., the two other major service providers. We expect fierce competition going forward as the Chinese giant; China Mobile Ltd. (CHL) has purchased a 12% stake in Far EasTone Telecommunications and decided to launch TD-LTE network in Taiwan.
 
Under this situation, advanced technology deployment is critical for Chunghwa’s operations to retain a leading edge. The company is also exploring the possibility of deploying the other 4G wireless flavor, the WiMAX alongside.  In synergy with its strong balance sheet, management has also decided to expand outside Taiwan and is deploying super-fast mobile broadband networks.
 

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