Chunghwa Telecom said its Capex (capital spending) for 2014 will increase by NT$3.72 billion year-over-year to NT$40.13 billion, primarily due to costs associated with the build-out of the 4G network, fiber broadband, mobile network, and cloud infrastructure.
This does not include 4G license payment of NT$39.08 billion.
In another development, mobile service provider Chunghwa Telecom has appointed Rick L. Tsai as chairman and CEO of the company.
Tsai replaces Yen-Sung Lee, who after serving the company for 40 years, has decided to retire.
President Mu-Piao Shih will serve as interim CFO of Chunghwa Telecom.
Rick L Tsai most recently served as the chairman and chief executive officer of TSMC Solar and TSMC Solid State Lighting since 2011. Before joining TSMC, Tsai was based in the United States and worked for Hewlett-Packard for several years.
Under Tsai’s leadership with president Shih, Chunghwa Telecom will aggressively promote LTE and fiber broadband services.
Meanwhile, Chunghwa Telecom said it will launch broadband services with 300Mbps speed this year.
Chunghwa Telecom on Tuesday said its revenue in 2014 is expected to slightly increase by NT$0.23 billion, or 0.1 percent, to NT$228.23 billion compared to the unaudited consolidated revenue for 2013.
Expected increases in revenue due to on-going promotions for mobile internet and growth in handset sales as well as ICT projects will likely be offset by expected the voice revenue decline and tariff reductions. Broadband revenue is expected to be flat year-over-year due to market competition.
Operating costs and expenses for 2014 are expected to increase by NT$4.21 billion to NT$184.70 billion. Costs of handset sold are expected to increase along with the promotion of mobile internet packages and customers’ migration to 3G.
