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Chunghwa Telecom’S 2013 Capex Expected to Surpass 2012 Level

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Core prompt: Taipei, Oct. 19, 2012 (CENS)--Industry executives estimated Chunghwa Telecom Co., Ltd.’s 2013 capital expenditure at around NT$37 billion (US$1.2 bil

Taipei, Oct. 19, 2012 (CENS)--Industry executives estimated Chunghwa Telecom Co., Ltd.’s 2013 capital expenditure at around NT$37 billion (US$1.2 billion at US$1:NT$30), based on the remarks made by its president, Y.S. Lee that the company’s 2013 outlay will surpass 2012’s NT$33.1 billion (US$1.1 billion). 

Behind the higher 2013 spending is the company's projects to start construction of an eco-friendly Internet data center park in Banqiao, New Taipei City, expand optical fiber network, and build up cloud computing capacity. The park will cover a land space of 26,400 square meters, with planned 62,700 square meters of floor area set for four buildings.

The buildings will accommodate Internet data centers (IDCs) of several of the island's significant institutions such as the Taiwan Stock Exchange Corp. 

According to Lee, the park will require total investment of around NT$13-15 billion (US$433-500 million). Civil engineering construction is scheduled to be completed by the end of next year. 

The company's expenditure for this year is mostly on 100-megabit high-speed optical fiber network, with the aim of connecting 70% of the island's population with the high-speed Internet network by the end of this year and 100% next year. 

The company has been vigorously promoting cloud-based services this year, including the Hicloud CaaS cloud computing, cloud marketplace, personal cloud and enterprise cloud.

((KL)) (GE) 

Chunghwa Telecom's Capital Expenditure Plan (2012-2013) Sources: Chunghwa and institutional investors 

Year 2012 2013
Broadband network plan 70% islandwide coverage with 100Mb optical fiber network 100% coverage with 100Mb optical fiber network
Mobile network plan Speed upgrade and capacity buildup Speed upgrade and capacity buildup
Cloud plan Upgrading Internet data centers into cloud centers Eco-friendly data center park
Outlay NT$33.1bn An estimated NT$37bn

(by Ken Liu)

 
 
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