Chunghwa Telecom Co (中華電信), the nation’s top telecoms operator, expects revenues from value-added services to grow 30 percent this year as the rising uptake of smartphones and tablet devices spur demand for its Internet access and data services, a company executive said yesterday.
The nation’s continued economic recovery will also boost voice and data traffic this year, Chunghwa Telecom vice president Shih Mu-piao (石木標) said by telephone.
The company aims to increase revenues from value-added services to NT$14 billion (US$470 million) this year, from NT$11 billion last yea year, Shih said.
That would bring revenue contribution from value-added services to about 20 percent this year, from 17 percent last year, he added.
“We believe the growing popularity of tablet devices, like smartphones, will help boost usage of our value-added services,” Shih said. “It is a brand new market as children and older people will find it easier to get online using tablets instead of PCs.”
Chunghwa Telecom plans to purchase at least 100,000 Android-powered tablet computers with voice function like Samsung Electronics’ Galaxy Tab, in addition to 700,000 smartphones, this year for bundling with its service packages, Shih said.
Chunghwa Telecom reported that net profit last year grew 9 percent year-on-year to NT$47.69 billion, or NT$4.92 per share, from NT$43.76 billion in 2009 because of increasing usage of its value-added services and a lower business tax rate.
The tax rate fell to 17 percent last year, from 25 percent in 2009.
Revenues rose 1.3 percent to NT$186.41 billion last year, from NT$198.36 billion in 2009.
Rivals Taiwan Mobile Co (台灣大哥大) and Far EasTone Telecommunications Ltd (遠傳電信) saw earnings last year drop 0.5 percent and 3.8 percent annually to NT$13.82 billion, or NT$4.62 a share, and NT$8.85 billion, or NT$2.83 per share, respectively.
Taiwan Mobile said revenues last year grew 2.5 percent year-on-year to NT$70.15 billion, while Far EasTone’s expanded 5.6 percent to NT$63.44 billion.
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