broadband business in taiwan 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 PresentationTRANSCRIPT
1 ATIE 2002/11/30
Broadband Business In TaiwanAn ADSL Case Study in Chunghwa Telecom
Chi-Mau Sheih
Chunghwa Telecom
2 ATIE 2002/11/30
Contents
Overview of Telecom Services in Taiwan
Overview of Chunghwa Telecom A Case Study – ADSL in CHT A Coming New Era for CHT Conclusions
3 ATIE 2002/11/30
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, …
4 ATIE 2002/11/30
Overview of Telecom Services in Taiwan DSL and Cable Modem in Taiwan
Market share(%) Unit : 1000 users
user user
4 ATIE 2002/11/30
5 ATIE 2002/11/30
Overview of Telecom Services in Taiwan Taiwan is the Top 2 DSL Density Country in the World
SOURCE : Point Topic, Aug. 2002
6 ATIE 2002/11/30
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$5.2bn)
7 ATIE 2002/11/30
Overview of Chunghwa Telecom CHT: a Full Services Telecom Operator
Total Revenues (Year 2001) US$ 5.20 bn
Leading Fixed-line Operator
Mobile32%
Local30%
ILD11%
DLD10%
Internet & Data
16%
#1 Mobile, #1 ISP (HiNet) and #1 Broadband Access
8 ATIE 2002/11/30
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
9 ATIE 2002/11/30
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
10 ATIE 2002/11/30
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
11 ATIE 2002/11/30
ADSL in CHT
ADSL - Values for Customers
1. Faster speed
2. Always on
3. Frees up phone line
4. Access to better Contents
12 ATIE 2002/11/30
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
Authentication Authorization Accounting
PC
ADSL in CHT
ADSL Access Network Architecture
13 ATIE 2002/11/30
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)
16 ATIE 2002/11/30
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+
20 ATIE 2002/11/30
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
22 ATIE 2002/11/30
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)
23 ATIE 2002/11/30
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
24 ATIE 2002/11/30
(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)
25 ATIE 2002/11/30
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
27 ATIE 2002/11/30
A coming new era for CHT Enhanced BB Services
More bandwidth, more applications
Contents Entertainment
BB AccessHome
Networking
New Applications Household Electronic
Entertainment
28 ATIE 2002/11/30
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
29 ATIE 2002/11/30
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