After repeatedly missing its break-even target, Vibo Telecom Inc (
Vibo, the nation's pure third-generation (3G) telecom service provider, has yet to make a profit as it has failed to attract enough subscribers to achieve economies of scale amid a saturated telecom market.
In a surprise announcement last Thursday, Chang said he was retiring from Chunghwa a year earlier than planned to take on new duties. Vibo announced his appointment as chief executive later that evening. The Vibo post had been vacant for a year after David Wang (
PHOTO: LIU LI-JEN, TAIPEI TIMES
NEW START
"This is a new beginning in my career," Chang told reporters after his debut at Vibo's service launch yesterday.
Chang said he left Chunghwa because he was attracted to Vibo chairman Rock Hsu's (
Chang, 64, was with Chunghwa for more than three decades, serving in different capacities and departments, including billing, marketing and broadband service. He is known for helping Chunghwa recoup its top position in 1996 by turning the company's employees into salespersons in the early stage of government deregulation.
Talking about his new job, Chang said: "The priorities will be boosting subscriptions and expanding revenues by selling new services that will differentiate Vibo from other telecom companies."
Corporate users are the main battlefield, he said.
Senior citizens will also be a target given this expanding market, he said.
Chang declined to give specific figures nor comment on the company's goal to break even in August next year. As of June, Vibo had accumulated NT$7.7 billion (US$237 million) in losses since the commercial launch of its 3G services in 2005.
"I have set a challenging target for myself," Chang said.
After three years of commercial operation, Vibo only has 660,000 subscribers, which is less than a third of Chunghwa's 2.2 million 3G users.
NO CURE ALL
Despite Chang's determination to revamp Vibo, "hiring a chief executive from rival is not a cure all," said Lu Chia-lin (
Vibo's broken coverage has shut potential users out of the door as it lacks a second-generation (2G) network to fill the network gaps as the nation's major players did, Lu said.
The lack of more diversified 3G contents industrywide is also a key reason behind Vibo's slow expansion, he said.
"Lowering rates is the only thing Vibo can do to lure subscribers from other operators," Lu said.
Chang appeared to already have all his options in mind. He said that resuming handset subsidies, cutting rates and reshaping the retail channels would be some of approaches.
PRIORITY
Improving Vibo's coverage would also be high on his priority next year, he added.
Vibo "will certainly increase capital spending next year," Chang said. This year, Vibo plans to spend NT$3.5 billion on new equipment.
But that seems to be another difficult task, Lu said, as Vibo would need another NT$20 billion to improve its coverage to satisfy subscriber.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new