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Chunghwa Telecom Sets Its Sights on 2025

Chunghwa Telecom Co., Ltd., Taiwan's largest integrated telecommunications service provider, has recently unveiled its guidance for the year 2025. This forward-looking statement highlights the company’s commitment to enhancing its services and positioning itself competitively in an ever-evolving ICT landscape.

Strategic Focus Areas

In outlining its future strategy, Chunghwa Telecom emphasizes three principal pillars: Sustainable Future, Smart Empowerment, and Digital Resilience. These pillars reflect the company's alignment with global trends towards Environmental, Social and Governance (ESG) sustainability, the surge in artificial intelligence (AI), and a broad industrial transformation focused on security and resilience.

To realize these pillars, Chunghwa has identified six key themes aimed at driving its growth:
1. Sustainability Opportunities
2. AI Applications
3. Resilience Enhancement
4. Next-Generation Networks
5. Reinvestments
6. Asset Revitalization

By making the most of these themes, Chunghwa Telecom seeks to better understand and address its customers’ needs, enhance user value, and steadily increase its Average Revenue Per User (ARPU).

Revenue and Growth Expectations

The company forecasts a revenue increase of between NT$2.71 billion and NT$3.71 billion in 2025, reflecting a year-on-year growth of approximately 1.2% to 1.6%. This growth is expected to be driven primarily by advancements in mobile communication, broadband, and data revenue, alongside new business avenues created from the firm’s focus on sustainable transformations and a digital economy propelled by AI.

Conversely, operating expenses are anticipated to rise by NT$4.31 billion to NT$4.38 billion, an increase largely attributable to future-oriented infrastructure development costs, talent acquisition, and advancements in network resilience and security which demand a higher operational investment.

Income from operations alongside net income is expected to experience slight fluctuations. Notably, income from operations may dip by up to NT$1.58 billion, which while appearing concerning, highlights the strategic investments the company is undertaking.

Investment in Infrastructure and Technology

Chunghwa's acquisition of property, plant, and equipment is set to increase substantially by NT$3.37 billion, reaching NT$32.36 billion. This investment will support the development of AI-driven data centers, new submarine cable construction, and the critical deployment of 5G technology. The focus on eliminating energy-intensive equipment to align with ESG practices illustrates Chunghwa’s commitment to sustainability.

Management Philosophy and Future Vision

Chien, the Chairman of Chunghwa Telecom, reiterated the company’s management philosophy centered on three principles: simplification (refining processes and product value), pragmatism (optimizing resources), and intelligence (advancing AI applications). This concise approach aims to ensure steady growth in revenue while cementing a strong foothold in new technologies and emerging markets.

The vision for 2025 encapsulates a dual transformation across industries—digital and net-zero transformation—emphasizing operational efficiency and enhancing competitiveness in the telecommunications sector.

Conclusion

As Chunghwa Telecom moves towards 2025, its proactive strategy not only seeks to engage with the rapid shift towards digital and sustainable practices but also intends to consistently create greater value for its customers, shareholders, and employees. This ambitious outlook could position Chunghwa Telecom as a leader in both innovation and sustainability within the telecommunications industry.