Chunghwa Telecom Aims at China Value-Added Service Market

Taipei, March 4, 2011 (CENS)--Chunghwa Telecom Co., Ltd. recently announced it will invite online content provider Spring House Entertainment Technology Inc. and Taiwan's label recording companies to set up comic and music content ventures in mainland China in cooperation with Chinese providers.

The move is part of Chunghwa Telecom's plan to make push into the mainland's value-added mobile service market. Over the past few years, Taiwan's No.1 telecom carrier has vigorously pushed its value-added service project, including investments in online content companies as online music provider KKBOX, online comic provider Spring House, and online map provider Kingwaytek Technology Co., Ltd.

Chunghwa Telecom has vowed to boost value-added service revenue by 30%, to NT$14 billion (US$466 million at US$1: NT$30) by the end of this year. Tapping the mainland market is expected to help the company achieve the goal.

Chunghwa Telecom will establish its mainland China subsidiary sometime in the first quarter to launch its investment in value-added service business in the mainland. The company's executives pointed out that the mainland authorities are encouraging investments in Chinese-content creativities. So far, comic-content and animation-content industries are developing in Fujian Province and in Hanzhou City thanks to advantageous investment climate.

Chunghwa Telecom executives pointed out that the mainland market for value-added service is quit huge, given China Mobile's annual revenue of RMB10 billion (US$1.49 billion at US$1:RMB6.7) from such service alone.