Chunahwa Telecom has decided to embrace a two-pronged sustainable development strategy that calls for the investment of NT$100 billion (US$3.4 billion at NT$29:US$1) over a five-year period to forge a smart digital living environment in Taiwan while extending its reach to overseas markets at the same time, reported the chairman of the company, Lu Hsueh-chin.
In an exclusive interview with the Chinese-language Economic Daily News, a sister publication of the Taiwan Economic News, Chunghwa Telecom's chairman Lu and president Chang Hsiao-tung mapped out a blueprint for the company's future development.
The NT$100 billion investment will be spent mainly on network construction in line with the government's goal of building a broadband network with a speed of 100 Mbps that reaches 80% of Taiwan's households by 2015.
In addition to the fixed network, Chunghwa Telecom also plans to develop an extensive mobile broadband network, mainly by extending its existing 3G network and installing more WiFi hotspots for wireless Internet access.
Along with the new hardware, the company will also beef up its digital-content services. The number of high-definition channels for its movie-on-demand (MOD) network TV, for instance, will be boosted from the present 20 to 33. A new open policy will allow other operators, such as independent cable TV operators, to use its MOD platform and broadband network.
Overseas, the company will focus especially on mainland China. It has joined hands with China Telecom for the development of intelligent energy networks (iEN) and cloud computing operations. Cooperation with the Chinese company will enable Chunghwa Telecom to take part in the mainland's five cloud-computing trials, and the Taiwanese company is even considering the joint establishment of a large cloud-computing center in China together with its Chinese partner. It has also gone into cooperation with Fujian Telecom, under the auspices of China Telecom, to tap the mainland's energy-conservation market.
Furthermore, Chunghwa Telecom has signed a contract with China Unicom for the development of value-added telecom services, linking its Hami Apps with Unicom's online shopping platform.
The company is not limiting its overseas ventures to China. In the Southeast Asian market, for example, it has teamed up with Viettel Telecom of Vietnam for the establishment of an Internet data center (IDC), which later on may be upgraded to a cloud-computing IDC.
For the development of overseas markets, Chunghwa Telecom will first build a platform designed to encourage domestic operators to engage, under its auspices, in smart energy conservation, cloud computing, and mobile value-added services in the mainland Chinese market, other ethnic Chinese markets, and even the overall global market.
In the interview, the two Chunghwa Telecom executives noted that innovation and integration will be the centerpieces of their development plan for the next five years. Innovation will be the key to the creation of business opportunities in the areas of business model, service content, and service methods, while integration will involve the combining of diverse resources for the creation of business value.
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