CHT — Investor Presentation 2014

Sep 5, 2014

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Q2 2014 Operating Results

CLSA Investors’ Forum September 15~16, 2014

TSE: 2412 NYSE: CHT

Disclaimer

STATEMENT REGARDING UNAUDITED FINANCIAL INFORMATION

The unaudited financial information under T-IFRSs in this presentation is preliminary and subject to adjustments and modifications. Adjustments and modifications to the financial statements may be identified during the course of the audit /review work, which could result in significant differences from this preliminary unaudited financial information.

NOTE CONCERNING FORWARD-LOOKING STATEMENTS

This presentation contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Statements that are not historical facts, including statements about Chunghwa’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to the risks outlined in Chunghwa’s filings with the U.S. Securities and Exchange Commission on Forms F-1, F-3, 6-K and 20-F, in each case as amended. The forward-looking statements in this presentation reflect the current belief of Chunghwa as of the date of this presentation and Chunghwa undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date, except as required under applicable law.

This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.

SPECIAL NOTE REGARDING NON-GAAP FINANCIAL MEASURES

A body of generally accepted accounting principles is commonly referred to as "GAAP". A non-GAAP financial measure is generally defined by the SEC as one that purports to measure historical or future financial performance, financial position or cash flows but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We disclose in this report certain non-GAAP financial measures, including EBITDA. EBITDA for any period is defined as consolidated net income (loss) excluding (i) depreciation and amortization, (ii) total net comprehensive financing cost (which is comprised of net interest expense, exchange gain or loss, monetary position gain or loss and other financing costs and derivative transactions), (iii) other expenses, net, (iv) income tax, (v) cumulative effect of change in accounting principle, net of tax and (vi) (income) loss from discontinued operations.

In managing our business we rely on EBITDA as a means of assessing our operating performance. We believe that EBITDA can be useful to facilitate comparisons of operating performance between periods and with other companies because it excludes the effect of (i) depreciation and amortization, which represents a non-cash charge to earnings, (ii) certain financing costs, which are significantly affected by external factors, including interest rates, foreign currency exchange rates and inflation rates, which have little or no bearing on our operating performance, (iii) income tax and tax on assets and statutory employee profit sharing, which is similar to a tax on income and (iv) other expenses or income not related to the operation of the business.

EBITDA is not a measure of financial performance under U.S. GAAP or T-IFRSs. EBITDA should not be considered as an alternate measure of net income or income from operations, as determined on a consolidated basis using amounts derived from statements of operations prepared in accordance with U.S. GAAP or T-IFRSs, as an indicator of operating performance or as cash flows from operating activity or as a measure of liquidity. EBITDA has material limitations that impair its value as a measure of a company's overall profitability since it does not address certain ongoing costs of our business that could significantly affect profitability such as financial expenses and income taxes, depreciation, pension plan reserves or capital expenditures and associated charges. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data, the non-GAAP results should be reviewed together with the GAAP results and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies.

© 2014 Chunghwa Telecom 2

Chunghwa Telecom Overview

Strong Market Position[(a)]

Highest Mobile Internet Subs Market Share[(e) ]

Domestic Fixed

• 1 Local

• 94.4% share by subs (11.45 mn subs)

• 85.1% share by minutes

• 1 DLD

• 79.5% share by minutes

• – #1 Broadband access

• 76.9% share by subs[(b)(c) ] (4.55 mn subs)

• Mobile

• 1 Mobile subscribers

• 36.5% market share[(d)] (10.97 mn subs)

• 1 Mobile revenue

• 35.5% market share[(d)]

Internet

• 1 ISP

• 68.5% share by subs (4.24 mn subs)

• International Fixed

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• 1 ILD

• 55.6% share by minutes

• Source: Company data, MOTC, and NCC statistics a) Market share as of July 2014

• b) CHT access circuits were not included c) Excluding PWLAN subscriber numbers d) Includes 2G, 3G and PHS e) Market shares are based on 3G mobile internet plan subscribers

• f) Revenues are based on T-IFRSs .

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36.4%
35% 34.1% 34.8% 35.6%
30% 28.8%27.6% 28.2%27.2% 27.5%27.0% 26.8%26.8%
25%
20%
15%
9.8% 9.9% 10.0%
10% 9.5%
5%
Q3 13 Q4 13 Q1 14 Q2 14
CHT TWM FET VIBO+APT
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Revenue Breakdown [(f) ]
100% 1.0% 1.0% 1.2% 0.9%
7.2% 7.0% 7.0% 7.0%
90%
11.1% 11.3% 10.9% 11.2%
80%
70%
60%
48.1% 49.8% 48.7% 49.9%
50%
40%
30%
20%
32.6% 30.9% 32.2% 31.0%
10%
0%
Q2 13 Q2 14 1H 13 1H 14
Domestic Fixed Mobile Internet Int'l Fixed Others
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© 2014 Chunghwa Telecom 3

Committed to Improving Shareholder Value

Cash Return

NT$ bn

AGM resolved to distribute NT$35.1 billion or NT$4.5251 per share to shareholders

• NT$2.3881 per share from earnings distribution for 2013

• NT$2.137 per share from capital surplus

Special dividend from capital surplus is allocated to compensate for the decrease of earnings upon the first adoption of T-IFRSs in 2013

Note:

1. The cash return was calculated based on cash dividend and cash return from capital reduction, stock dividend was not included.

2. 1 ADR = 10 common shares

3. The normal dividend has been calculated based on total share number 7,757,446,545 since year 2011.

© 2014 Chunghwa Telecom 4

Business Overview

Number One Mobile Services Provider

VAS PerformancePerformance

Strategy

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Focusing on 4G service promotion
NT$ mn
43.9%
42.6%
39.7%
37.3% Expanding 4G smart device profile
35.7%
8,000 40%
998
1,040
1,077
6,000 1,124 1,106 30%
3G network
4,000 20%
5,844 6,252 6,615 7,053 Accelerating 4G network deployment to
5,324
2,000 10% enhance capital efficiency
0 0%
Q2 13 Q3 13 Q4 13 Q1 14 Q2 14
Mobile Internet SMS Others
Highest Subs & Lowest Churn
Thousand
12,000 2.5%
10,000 2.0%
8,000
1.5%
6,000
1.0%
4,000
0.5%
2,000
0 0.0%
J-13 J-13 A-13 S-13 O-13 N-13 D-13 J-14 F-14 M-14 A-14 M-14 J-14
CHT TWM FET CHT TWM FET
VAS revenue
Mobile VAS Revenue %
Subscribers Churn
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Focusing on 4G service promotion

Expanding 4G smart device profile

Continuing the migration of 2G customers to 3G network Accelerating 4G network deployment to enhance capital efficiency

© 2014 Chunghwa Telecom 6

Smartphone – Value Driver for Mobile

Smartphone Adoption

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• number of smartphones (iOS/ Android/ Symbian S60 above/ WM/ Blackberry/ Bada/ Brew MP) in mobile network* / total postpaid subs**

Smartphones accounted for 90% of the total handsets CHT offered in Q2 2014

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100%
27.0% 21.0% 26.0%
80% 47.0%
60% 41.0%
49.0% 49.0%
40% 29.0%
20% 38.0%
24.0% 25.0% 24.0%
0%
Q3 13 Q4 13 Q1 14 Q2 14
Smartphone Sales Breakdown
Top-tier Mid-tier Low-tier
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ARPU & Mobile Internet Subs

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NT$ Thousand
3,169 3,574 3,937 4,286 4,646 5,037 10,000
1,600
1,000
1,200 1,178 1,164 1,120
1,065 1,037
100
758 752 719
800 678 670
613 622 608 588 590 10
400 1
Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 2014 (E)
Blended ARPU 3G ARPU Smartphone ARPU
ARPU
Mobile Internet Subs
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Note: Mobile internet subscriber number excludes subscribers without plan subscription.

© 2014 Chunghwa Telecom 7

Fixed Broadband and Internet Services

Performance

Strategy

Broadband Access Revenue

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ARPU NT$
NT$ mn 698 703 708 707 698
5,000 3,695 3,819 3,923 3,956 3,886 600
400
2,500
986 951 911 865 812 200
0 0
Q2 13 Q3 13 Q4 13 Q1 14 Q2 14
ADSL Fiber
Note1 : Broadband ARPU is calculated as access plus ISP
Note2 : Revenue is calculated based on T-IFRSs
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• Launching 300M/100M fiber service to maintain leadership

• Continuing to migrate customers from low speed to high speed fiber services

• Expediting FTTH construction and enhancing household coverage of 100M service

• Leveraging network capability to offer higher-speed upload service

Fixed Broadband Subs

Internet Revenue

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NT$ mn 15.9%
8,400 14.9% 13.6% 13.2% 13.4%
15%
6,600
10%
4,800 6,191 6,729 6,507 6,134 6,295 5%
3,000 0%
Q2 13 Q3 13 Q4 13 Q1 14 Q2 14
Revenue VAS as % of Internet Revenue
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Thousand
4,552 4,551 4,553 4,537 4,543 4,573
5,000
99 188 373 492 627
4,000
3,000 2,734 2,711 2,582 2,501 2,405
2,000
1,000
1,719 1,652 1,598 1,544 1,511
0
Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Dec 14
ADSL Fiber (<100M) Fiber ( ≧ 100M) (E)
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Note : Revenue is calculated based on T-IFRSs

© 2014 Chunghwa Telecom 8

MOD/ IPTV Service

Performance

IPTV revenue increased by 8.8% YoY in Q2 2014 Household TV Usage rate increased to 58.9%

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Strategy

Continuing to enrich local contents and VOD programs Optimizing MOD cost structure

Leveraging the existing broadband subscriber base to grow MOD subscription

Providing the SVoD packages and improving user experience to differentiate from CATV services

Note: SVoD or Subscription Video on Demand

Subscriber & Usage

Subscriber market share (CATV+IPTV) QoQ grew from 19.8% to 20.1% in Q1 2014

87.1% of IPTV subscribers signed up additional Packages

Total IPTV Subscribers & Package Subscribers

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Thousand 157 168 161 162 ARPU NT$
145 170
1,425
1500
1,210 1,225 1,240 1,253 1,286
120
1000
500 909 936 980 1,026 1,085 70
0 51 46 41 38 35 20
Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Dec 14(E)
Golden Package Family Package
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Note: ARPU figures are calculated based on T-IFRSs

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56.8% 57.6% 58.1% 58.7% 58.9%
60%
200
50%
150
40%
79 86 87 95 98 30%
100
20%
50
78 73 73 68 64 10%
0 0%
Jun 13 Sep 13 Dec 13 Mar 14 Jun 14
SD HD Household TV Usage Rate
Channel Numbers
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Note: Household TV Usage Rate = average daily active subs per quarter / total IPTV subscribers

© 2014 Chunghwa Telecom 9

ICT and Cloud Computing Initiatives

Performance

Strategy

Personal Cloud (Hami[+] ) subscribers accumulated to 2.02 million

Leveraging core telecom infrastructure and services to expand ICT business

Acquired several significant ICT projects in Q2 2014 with contract amount totaling NT$1.63 bn

Data system project for Department of land

Host computer leasing project for Ministry of Labor

Cloud computing system for National Police Agency

ICT project for a hospital

Leading the cloud computing industry by taking advantage of broadband and IDC service foundation

Establishing strategic partnership with international companies, eg. Microsoft, Trend Micro, IBM, etc.

Cooperating with ISV* to run hicloud apps mall

Expecting to secure ICT projects for several public sectors.

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Government Industry
10 cloud applications: hicloud S3
public security, food
hicloud PaaS
products, health,
environment,
transportation, …
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• Independent Software Vendor

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Corporate
Application
Personal
Application
Enterprise cloud SaaS
Hami hicloud Desk
cloud
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© 2014 Chunghwa Telecom 10
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Financials Overview

Financials: Income Statement Highlights

Consolidated	Consolidated	Consolidated	Consolidated	Consolidated	Consolidated
(NT$bn) Q2 2013 (T-IFRSs)	Q2 2014 (T-IFRSs)	Growth %	1H 2013 (T-IFRSs)	1H 2014 (T-IFRSs)	Growth %
Revenues 55.84	55.78	(0.1)	112.45	110.83	(1.4)
Operating Costs and Expenses 43.18	43.45	0.6	88.54	86.59	(2.2)
Income from Operations 12.65	12.33	(2.5)	23.88	24.23	1.4
Net Income1 10.63	10.58	(0.5)	19.84	20.82	5.0
Net Income Margin2 (%) 19.50	19.17	-	18.23	19.02	-
EPS 1.37	1.36	(0.7)	2.56	2.68	4.7
EBITDA 20.65	20.85	1.0	39.85	41.12	3.2
EBITDA Margin (%) 36.99	37.38	-	35.43	37.10	-

Note:

1. Net income attributable to owners of the parent.

2. Net income margin is based on consolidated net income (including net income attributable to NCI)

3. The calculation of figures is based on NT$mn.

© 2014 Chunghwa Telecom 12

Financials: Business Segment Revenues

Consolidated	Consolidated	Consolidated	Consolidated	Consolidated	Consolidated	Consolidated
(NT$bn) Q2 2013 (T-IFRSs)		Q2 2014	Growth	1H 2013	1H 2014	Growth
		(T-IFRSs)	%	(T-IFRSs)	(T-IFRSs)	%
Domestic Fixed	18.18	17.23	(5.2)	36.23	34.38	(5.1)
Local	9.58	9.00	(6.1)	19.00	17.90	(5.8)
DLD	0.89	0.84	(5.7)	1.74	1.66	(4.9)
Broadband Access	4.68	4.70	0.4	9.51	9.52	0.1
Mobile	26.87	27.78	3.4	54.77	55.29	0.9
Mobile Voice	12.29	10.78	(12.3)	24.39	21.63	(11.3)
Mobile VAS	6.82	8.44	23.7	13.34	16.49	23.5
Handset Sales	7.57	8.35	10.4	16.67	16.78	0.7
Internet	6.19	6.29	1.7	12.21	12.43	1.8
Internet Services	4.30	4.31	0.2	8.61	8.60	(0.1)
Internet VAS	0.76	0.81	7.7	1.36	1.48	8.9
International Fixed	4.03	3.93	(2.4)	7.84	7.72	(1.5)
ILD	2.87	2.75	(4.2)	5.69	5.48	(3.7)
Leased line	0.35	0.35	(0.3)	0.69	0.71	3.2
Others	0.57	0.55	(2.8)	1.40	1.01	(27.9)
Total	55.84	55.78	(0.1)	112.45	110.83	(1.4)

Note: The calculation of figures is based on NT$ mn.

© 2014 Chunghwa Telecom 13

Financials: Costs & Expenses

Consolidated	Consolidated	Consolidated	Consolidated	Consolidated	Consolidated	Consolidated
(NT$bn)	Q2 2013 (T-IFRSs)	Q2 2014 (T-IFRSs)	Growth %	1H 2013 (T-IFRSs)	1H 2014 (T-IFRSs)	Growth %
Operating Costs 35.28		35.04	(0.7)	72.73	70.04	(3.7)
Operating Expenses 7.90		8.41	6.4	15.81	16.55	4.7
Marketing 5.96		6.43	7.8	11.95	12.59	5.4
General and Administrative 1.01		1.08	7.1	2.06	2.17	5.2
R&D Expense 0.93		0.90	(3.7)	1.80	1.79	(0.7)
Total 43.18		43.45	0.6	88.54	86.59	(2.2)

Note: The calculation of figures is based on NT$ mn.

© 2014 Chunghwa Telecom 14

Cash Flow & EBITDA Margin

Consolidated	Consolidated	Consolidated	Consolidated	Consolidated	Consolidated
(NT$bn) Q2 2013 (T-IFRSs)	Q2 2014 (T-IFRSs)	Growth %	1H 2013 (T-IFRSs)	1H 2014 (T-IFRSs)	Growth %
Net Cash Flow from Operating Activities 19.34	14.42	(25.5)	27.90	24.03	(13.9)
CapEx (8.05)	(7.32)	(9.1)	(15.59)	(13.09)	(16.0)
Free Cash Flow 11.29	7.10	(37.1)	12.31	10.94	(11.1)
Cash and Cash Equivalents at the end of period 58.99	28.14	(52.3)	58.99	28.14	(52.3)
EBITDA Margin(%) 36.88	37.38	-	35.44	37.10	-

Note:

1. The calculation of figures is based on NT$ mn.

2. Free cash flow is calculated by subtracting CapEx from Net Cash Flows from Operating Activities.

© 2014 Chunghwa Telecom 15

Forecast & Operating Results

Consolidated (NT$bn) Q2 2014 (T-IFRSs) Q2 2014 (T-IFRSs E) Achieving % Jan-Jun 2014 (T-IFRSs) 2014 (T-IFRSs E) Achieving % Revenues 55.78 55.88 99.8 110.83 228.23 48.6 Operating Costs and Expenses 43.44 44.20 98.3 86.59 184.70 46.9 Income from Operations 12.33 11.69 105.5 24.23 43.53 55.7 Net Income 10.58 9.73 108.8 20.82 35.84 58.0 EPS 1.36 1.25 108.8 2.68 4.62 58.0 EBITDA 20.85 20.05 103.9 41.12 77.10 53.3 EBITDA Margin (%) 37.38 35.88 - 37.10 33.78 -	Consolidated (NT$bn) Q2 2014 (T-IFRSs) Q2 2014 (T-IFRSs E) Achieving % Jan-Jun 2014 (T-IFRSs) 2014 (T-IFRSs E) Achieving % Revenues 55.78 55.88 99.8 110.83 228.23 48.6 Operating Costs and Expenses 43.44 44.20 98.3 86.59 184.70 46.9 Income from Operations 12.33 11.69 105.5 24.23 43.53 55.7 Net Income 10.58 9.73 108.8 20.82 35.84 58.0 EPS 1.36 1.25 108.8 2.68 4.62 58.0 EBITDA 20.85 20.05 103.9 41.12 77.10 53.3 EBITDA Margin (%) 37.38 35.88 - 37.10 33.78 -	Consolidated (NT$bn) Q2 2014 (T-IFRSs) Q2 2014 (T-IFRSs E) Achieving % Jan-Jun 2014 (T-IFRSs) 2014 (T-IFRSs E) Achieving % Revenues 55.78 55.88 99.8 110.83 228.23 48.6 Operating Costs and Expenses 43.44 44.20 98.3 86.59 184.70 46.9 Income from Operations 12.33 11.69 105.5 24.23 43.53 55.7 Net Income 10.58 9.73 108.8 20.82 35.84 58.0 EPS 1.36 1.25 108.8 2.68 4.62 58.0 EBITDA 20.85 20.05 103.9 41.12 77.10 53.3 EBITDA Margin (%) 37.38 35.88 - 37.10 33.78 -	Consolidated (NT$bn) Q2 2014 (T-IFRSs) Q2 2014 (T-IFRSs E) Achieving % Jan-Jun 2014 (T-IFRSs) 2014 (T-IFRSs E) Achieving % Revenues 55.78 55.88 99.8 110.83 228.23 48.6 Operating Costs and Expenses 43.44 44.20 98.3 86.59 184.70 46.9 Income from Operations 12.33 11.69 105.5 24.23 43.53 55.7 Net Income 10.58 9.73 108.8 20.82 35.84 58.0 EPS 1.36 1.25 108.8 2.68 4.62 58.0 EBITDA 20.85 20.05 103.9 41.12 77.10 53.3 EBITDA Margin (%) 37.38 35.88 - 37.10 33.78 -	Consolidated (NT$bn) Q2 2014 (T-IFRSs) Q2 2014 (T-IFRSs E) Achieving % Jan-Jun 2014 (T-IFRSs) 2014 (T-IFRSs E) Achieving % Revenues 55.78 55.88 99.8 110.83 228.23 48.6 Operating Costs and Expenses 43.44 44.20 98.3 86.59 184.70 46.9 Income from Operations 12.33 11.69 105.5 24.23 43.53 55.7 Net Income 10.58 9.73 108.8 20.82 35.84 58.0 EPS 1.36 1.25 108.8 2.68 4.62 58.0 EBITDA 20.85 20.05 103.9 41.12 77.10 53.3 EBITDA Margin (%) 37.38 35.88 - 37.10 33.78 -	Consolidated (NT$bn) Q2 2014 (T-IFRSs) Q2 2014 (T-IFRSs E) Achieving % Jan-Jun 2014 (T-IFRSs) 2014 (T-IFRSs E) Achieving % Revenues 55.78 55.88 99.8 110.83 228.23 48.6 Operating Costs and Expenses 43.44 44.20 98.3 86.59 184.70 46.9 Income from Operations 12.33 11.69 105.5 24.23 43.53 55.7 Net Income 10.58 9.73 108.8 20.82 35.84 58.0 EPS 1.36 1.25 108.8 2.68 4.62 58.0 EBITDA 20.85 20.05 103.9 41.12 77.10 53.3 EBITDA Margin (%) 37.38 35.88 - 37.10 33.78 -
(NT$bn) Q2 2014 (T-IFRSs)	Q2 2014 (T-IFRSs E)	Achieving %	Jan-Jun 2014 (T-IFRSs)	2014 (T-IFRSs E)	Achieving %
Revenues 55.78	55.88	99.8	110.83	228.23	48.6
Operating Costs and Expenses 43.44	44.20	98.3	86.59	184.70	46.9
Income from Operations 12.33	11.69	105.5	24.23	43.53	55.7
Net Income 10.58	9.73	108.8	20.82	35.84	58.0
EPS 1.36	1.25	108.8	2.68	4.62	58.0
EBITDA 20.85	20.05	103.9	41.12	77.10	53.3
EBITDA Margin (%) 37.38	35.88	-	37.10	33.78	-

Note 1: The information therein is predictive and may not necessarily be fully realized in the future, and that reference to the company's significant accounting policy and summary of basic assumptions shall be made for further details.

© 2014 Chunghwa Telecom 16

Effective and Efficient Capital Expenditure

Capital Expenditure

Budgeted capex for 2014: NT$40.1bn

Continue to focus on core businesses for future investments

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26.9 33.3 36.4 40.1
NT$ bn
–
4G / 3G
50
45 15.0% 16.0% 17.6% 20% – FTTx
12.4% 13.9% 11.8%
40 0.7 –
1.9 10%
0.6
35 1.6 6.7 –
0.7
30 3.4 2.4 4.6 15.6 0%
25 0.7 1.5 9.2 9.3 13.1
3.8 7.2 -10%
20
4.3
0.2
15 0.7 0.6 -20%
1.7
0.6
10 19.6 20.4 21.5 4.9 1.5
16.6 3.5 -30%
5 8.1
6.9
0 -40%
2011 (A) 2012 (A) 2013 (A) 2014 (E) 1H 13 (A) 1H 14 (A)
Domestic Fixed Mobile Internet International Fixed Others
Capex
Capex as % of Revenue
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• Service Platforms

• Cloud / IDC

Note: Figures are on consolidated basis

© 2014 Chunghwa Telecom 17

Q&A

Reference

Regulatory Update (2013/4/1~2017/3/31)

Target	Business	Applicable Services	Applicable Services	X factor	Years in effect	Formula : △CPI - X
SMP (Significant Market Power)	Fixed-line	1	�xDSL monthly fee �FTTx monthly fee (exclude FTTH and FTTB)	5.1749%	4	1. The four year tariff reduction plan is applicable from April 1. 2013 to March 31, 2017 and applied based on the previous year tariff. 2. △CPI for year 2012 = 1.93% 2013 = 0.79%
		2	Domestic leased line wholesale service
		3	IP Peering
All 2G/3G Operators	Mobile	mobile interconnection fee		Mobile interconnection rate reduced from NT$2.15/min to NT$1.15/min over four years 2013：NT$1.84/min 2014：NT$1.57min 2015：NT$1.34/min 2016：NT$1.15/min

© 2014 Chunghwa Telecom 20

Continuing Broadband Network Construction

Fiber Deployment Plan

• FTTx coverage (≥100Mbit/s) reach 97% by 2016

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• Increase FTTH construction in order to meet the demand of ultra fast broadband[*]

• Fiber construction plan including CAPEX will be reviewed in accordance with market demand

*Note:

Chunghwa Telecom defines ultra fast broadband as connection with downstream speeds of 300Mbit/s or more.

Note:

• (1) The Coverage rate is based on the household number

• (8.32mn) as of June 2014

• (2) Wireline : Fixed + Internet

• (3) 100Mbit/s fiber construction adopted traditional technologies in 2011, and DSL bonding technologies and GPON solutions in 2012.

© 2014 Chunghwa Telecom 21