Chunghwa to beef up investments in Southeast Asia

12 Mar 2008
00:00

Chunghwa Telecom , Taiwan's largest telecommunications carrier, plans to step up investment in Southeast Asia and expects to spend NT$120 billion ($3.9 billion) in the next five years on capital spending projects, a Reuters report said.

The Reuters report said as growth in Taiwan's home market slows and as the island's mobile penetration becomes saturated, the company is hoping further overseas investments would bring the company more profitable projects in fast-growing Southeast Asia.

The Reuters report quoted Tu Yuan-kuang, senior managing director of Chunghwa Telecom as saying that 'we are aiming for high-growth telecom markets.'

Tu said the firm had started in countries like Vietnam and Thailand and was planning to invest in every Southeast Asian country expect Myanmar.

Analysts say the company is looking to create joint ventures with other Asian operators and that the firm is planning to provide internet services and infrastructure to other players, the report added.

Other Asian telecommunication firms have been successful in expanding their investments overseas when their home markets were just not big enough for long-term growth.

The report said Singapore's SingTel, Southeast Asia's largest phone company, has spent S$18 billion ($13 billion) in recent years buying operators in high-growth Asian nations, and in the bigger Australian market.

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