Broadband Business In Taiwan An ADSL Case Study in Chunghwa Telecom Chi-Mau Sheih Chunghwa Telecom

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1 ATIE 2002/11/3 0 Broadband Business In Taiw an An ADSL Case Study in Chunghwa Telecom Chi-Mau Sheih Chunghwa Telecom

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Broadband Business In Taiwan An ADSL Case Study in Chunghwa Telecom Chi-Mau Sheih Chunghwa Telecom. Contents. Overview of Telecom Services in Taiwan Overview of Chunghwa Telecom A Case Study – ADSL in CHT A Coming New Era for CHT Conclusions. Overview of Telecom Services in Taiwan. - PowerPoint PPT Presentation

Transcript of Broadband Business In Taiwan An ADSL Case Study in Chunghwa Telecom Chi-Mau Sheih Chunghwa Telecom

Page 1: Broadband Business In Taiwan An ADSL Case Study in Chunghwa Telecom Chi-Mau Sheih Chunghwa Telecom

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Broadband Business In TaiwanAn ADSL Case Study in Chunghwa Telecom

Chi-Mau Sheih

Chunghwa Telecom

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Contents

Overview of Telecom Services in Taiwan

Overview of Chunghwa Telecom A Case Study – ADSL in CHT A Coming New Era for CHT Conclusions

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Overview of Telecom Services in Taiwan

Population: 22 millions GNP per Capital: US$ 12,982 Fixed-wired lines per 100 Population: 57.9 Cellular subscribers per 100 Population:

104.7 PC penetration rate: 0.61 per household Internet users/penetration rate: 8 M / 36% Fully Opened Telecom Market - 4 Fixed Network Operators, 6 2G-Mobile Operators,

5 3G-Licenses Issued, …

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Overview of Telecom Services in Taiwan DSL and Cable Modem in Taiwan

Market share(%) Unit : 1000 users

user user

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Overview of Telecom Services in Taiwan Taiwan is the Top 2 DSL Density Country in the World

SOURCE : Point Topic, Aug. 2002

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Overview of Chunghwa Telecom

Date of Establishment : July 1st, 1996 (reformed from DGT)

Total Capital : NT$96.5bn (US$2.8bn)

Total Asset : NT$455.7bn (US$13bn)

Total Liability : NT$77bn (US$2.2bn)

Stockholders’ Equity : NT$378.7bn (US$10.8bn)

Total Revenue for year 2001 : NT$182.2bn (US$5.2bn)

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Overview of Chunghwa Telecom CHT: a Full Services Telecom Operator

Total Revenues (Year 2001) US$ 5.20 bn

Leading Fixed-line Operator

Mobile32%

Local30%

ILD11%

DLD10%

Internet & Data

16%

#1 Mobile, #1 ISP (HiNet) and #1 Broadband Access

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Overview of Chunghwa Telecom Statistics of Services

(Sep, 2002)

Customers / Volumes Market Share

Local 12.95mn 99.6%5.2bn Minutes (2002 Jan~Sep) 92.6%

International1.0bn Minutes (2002 Jan~Sep) 66%

7.23mn Customers: 30.4%Revenue:

34.7%3.15mn 40%

1.6mn 81%

ISP(HiNet)Broadband Access(HiNe

t)

Mobile

Business

FixedLine Domestic

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Overview of Chunghwa Telecom

Migrating Rapidly to a Growth Portfolio

Growth biz now represents 55% of our business rowth biz now represents 55% of our business (June,2002)(June,2002)

Mobile

60%

26%

1%

51%

32%

16%

1%

0%

20%

40%

60%

80%

100%

Jan - Dec 2000 Jan - Dec 2001Fixed line MobileInternet and data Others

Revenue breakdown

13%

Fixed

Mobile

Data

Fixed

Data

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Overview of Chunghwa Telecom

The Growth of Key Services

2,180

3,480

4,662

7,300

2,1032,748

3,423

99920

2,000

6,233

1,296840

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1998 1999 2000 2001 2002

Mobile

ADSL

ISP(HiNet)

Su

bsc

rib

ers

(’

s)ooo

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ADSL in CHT

ADSL - Values for Customers

1. Faster speed

2. Always on

3. Frees up phone line

4. Access to better Contents

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RADIUS Server

ATM Network

BRASDSLAMDSLAM

ATU-RATU-R

HiNet Core Net.

ATU-R: ADSL Remote TerminalDSLAM: Digital Subscriber Loop Access MultiplexerBRAS: Broadband Remote Access ServerRADIUS Server : Remote Access Dial-in User Service Server

PPPoE Client

[email protected]

Authentication Authorization Accounting

PC

ADSL in CHT

ADSL Access Network Architecture

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ADSL in CHT ADSL - Target Customers

All three markets of Residential Consumers, Business and Government are addressed

Residential Consumers Business Government

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Category 1 2 3 4 5 6 7

Down Stream(bps) 512K 1.5M 768K 1.5M 3M 6M 512K

Up Stream(bps) 64K 64K 128K 384K 512K 640K 512K

Installation fee(set) NT$1,500

Relocation fee NT$500

Configuration (setting) fee NT$200

Trouble Inspection fee NT$900

Monthly rate (NT$) 595 695 800 899 1,400 3,000 1,299

ADSL in CHT ADSL product portfolio

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1

10

100

1,000

10,000

100,000

1,000,000

10,000,000

Subs 1,560,000 65,000 58,000 450 130 17,000 16,000

% 91% 4% 3% 1% 1%

512k/64k 768k/128k 1.5M/384k 3M/512k 6M/640k 512k/512k 1.5M/64k

ADSL in CHT ADSL Subscribers in Terms of Rate

(Oct., 2002)

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Source: CHT Revenue Subscribers

Broadband access revenue and subscribersBroadband access revenue and subscribersBroadband access revenue and subscribersBroadband access revenue and subscribers

REVENUE CMGR = 7%

0

100

200

300

400

500

600

700

800

900

Sep2001

Oct Nov Dec Jan2002

Feb Mar Apr May Jun Jul Aug Sep

Re

ve

nu

e (

NT

$m

)

0

200

400

600

800

1,000

1,200

1,400

1,600

Su

bs

crib

ers

('00

0s

)

REVENUE CMGR = 7%

Phenomenal growth in broadband

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ADSL in CHT SPUR ADSL comes with Key Successful Factors Right Time Slot Acceptable Price Uniquely Designed for ILECs Low Risk

Value

Price

Slot Uniqueness

Risk

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PRICE

Uniqueness

RISK

SLOT Value

ADSL in CHT SPUR – time Slot

Right Time Slot

Customers need it, vendors have it, CHT cannot wait for it

Time to Mass

Aim it, time to it:Global Main Market Trend

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SLOT Uniqueness

Risk

ADSL in CHT SPUR - Price

Acceptable Price

PRICE

Value

Meet customer’s expectation

CATV : entertainment onlyMonthly Rental NT$600

4 M subscribers

CABLE MODEM : NT$800+

ADSL : entertainment + Internet

NT$1000+

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ADSL in CHT SPUR - Uniqueness

Uniqueness

Price

Slot

Risk

Value

Every ISP needs ADSL CHT Telephone Coverage near 100%

(ADSL Coverage 98.75%) ADSL is Uniquely Designed for ILEC CHT is a National-wide Provider of

ADSL

Uniqueness

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ADSL in CHT SPUR - Risk

Low Risk Price

Slot UniquenessValue

Risk

ISP : Dial up ADSL

Modem ATU-R

Business: Symmetric ADSL

ModemATUR & DSLAM

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ADSL in CHT

ADSL Road Map in CHT

Field Trial in University Campus (Nov., 1997)

Broadband Accessibility by Elementary and High Schools (Jun., 1999)

1M lines in Service (Jan., 2002)

Procurement of 20K lines (Feb., 1999)

Procurement of 240K lines (Mar., 2000)

Procurement of 230K lines (Jan., 2001)

Procurement of 1.27M lines (Mar., 2001)

710K lines in Service (Aug., 2001)

Procurement of 1.16M lines (Feb., 2002)

1.7M lines in Service (Oct., 2002)

2M lines in Service (Dec., 2002)

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ADSL in CHT Provisioning Statistics of ADSL Installed

1. 5,000 Lines/day2. Auto provisioning system3. User self-diagnosis4. Call Center

-

100,000

200,000

300,000

400,000

70%

75%

80%

85%

90%

95%

100%

Applications % of Provisioning within 7 days

Applications 107,267 174,331 229,380 265,863 232,364 272,532 341,113

Provision rate 82% 94% 94% 97% 99% 100% 100%

2001 Q1 2001 Q2 2001 Q3 2001 Q4 2002 Q1 2002 Q2 2002 Q3

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(2000)

(1997) (1998) (1999)

(2001)

ADSL in CHT HiNet – the Best ISP in Taiwan

HiNet - the all seasons best award winner Best Choice of IT Managers: 1997,1998,1999,2000,2001 Best Choice of users: 1997,1998,1999,2000’2001 Best ADSL: 2001

(2002 IT Outsourcing)

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ADSL in CHT Wireless LAN and

ADSL

802.11b - 11Mb/s in 2.4 GHz

- 4,500+ hot spots (July, 2002) - 10,000+ home/business (Nov.,

2002) Complement to ADSL Access solution = WLAN + ADSL

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A coming new era for CHT

Bright Future -- e-Taiwan a View from CHT

Taiwan has set a 6-year “e-Taiwan” project, Telecom related issues including: 6M broadband users 95% FTTC coverage 1,250Gbps island-wide backbone bandwidth 250Gbps international bandwidth 1.15M Wireless LAN users

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A coming new era for CHT Enhanced BB Services

More bandwidth, more applications

Contents Entertainment

BB AccessHome

Networking

New Applications Household Electronic

Entertainment

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A coming new era for CHT

CHT is on the Way to FTTH

VoicebandModem

ADSL

FTTB + ADSL/VDSL

ISDN

TodayEnhanced Copper

Hybrid Fibre/Copper

Pure Fibre

FTTH

Future

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Conclusions ADSL is successful and to be growing to 3 millions in 2003

in Taiwan ADSL is growing, dial-up is fading out Holding time is getting longer, from 20~30 min to 100~12

0 min ADSL is a strategy to transform an ILEC to an NGN Telco Before FTTH, ADSL or xDSL is the best way to the market CHT has successfully leveraged ADSL in various aspects e-Taiwan project will promote B2C, B2B, G2B, G2C busin

ess and CHT is the key player