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Chunghwa will create spin-off firms to make up for flagging revenue data

Chunghwa Telecom Co (中華電信), Taiwan's biggest telecommunications operator, said yesterday that it would spin off its "yellow page" and corporate departments to create two new companies in January to boost stagnant revenues.

Next year, the two new corporate entities are expected to increase total revenue by NT$700 million (US$21.48 million) for the phone company, chairman Hochen Tan (賀陳旦) said yesterday.

Chunghwa Telecom projected revenues would rise 0.54 percent to NT$184 billion this year from NT$183 billion last year on stiff competition.

The company said last week that it planned to set up a yellow pages company next month with initial capital of NT$250 million, tapping into niche location-based services.

Location-based services, which include global positioning system (GPS) products such as map search, are considered by firms such as Microsoft Corp and Yahoo Inc as the next important major driving force in the telecom and Internet industries.

Chunghwa Telecom has approached foreign investors including NTT Directory Services Co, a subsidiary of Japan's biggest mobile carrier NTT DoCoMo Inc, for possible investment in the new companies, Hochen said.

He said the company was not in a hurry, however, to expand capital by increasing new shareholders in the short term.
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