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Chunghwa: First in Taiwan to Offer LTE on 2600 MHz Band

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Chunghwa Telecom Co. Ltd. CHT, the largest integrated telecom operator in Taiwan, has become the first wireless operator in the country to offer 4G LTE (Long-Term Evolution) service on 2600 MHz band.

In Dec 2015, Chunghwa won a mobile broadband business license. The operator won 2x30 MHz of spectrum in the 2,500 MHz and 2,600 MHz bands, for a bidding price of TWD 9.955 billion. Notably, the license is valid till Dec 31, 2033. Meanwhile, the company has won 2 slots of 1800 MHz spectrums for the installation of 4G LTE wireless network.

Chunghwa is using the 3-carrier aggregation (3CA) technology which enables the company to offer 4G LTE download speed of a staggering 340 Mbps. The company has a portfolio of 60 MHz of total frequencies in 900 MHz, 1800 MHz and 2600 MHz bands.

Chunghwa has also struck a deal with LINE, a developer of popular communication apps for smartphones. The new agreement will provide Chunghwa’s mPro subscribers free mobile Internet service. At present, around 85% of the smartphones offered by the company for contract-bundled sale support 2,600MHz band along with 3CA-enabled technology.

In July 2015, Ericsson AB ERIC inked a contract with Chunghwa to expand the latter’s 4G LTE coverage as well as capacity. At the end of 2015, Chunghwa’s 4G wireless subscriber base stood at 4.43 million.

In addition to its wireless efforts, Chunghwa is gradually expanding its subscriber base on the back of high-speed next-generation FTTx (fiber to the home/building/premise) offerings. The company is investing heavily to build a formidable FTTx network in Taiwan.

At the end of 2015, the total Broadband subscriber base was nearly 4.5 million, out of which the FTTx subscriber count was around 3.36 million, accounting for 74.7% of the total broadband subscriber base.

Zacks Rank and Stocks to Consider

Chunghwa currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Nippon Telegraph and Telephone Corp. NTT and Oi S.A. OIBR. Both the stocks have a Zacks Rank #2 (Buy).

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