Chunghwa Telecom Co Ltd (CHT) 2012 Q4 法說會逐字稿

Good evening, ladies and gentlemen. Welcome to the Chunghwa Telecom conference call for the Company's operating results for full year of 2012. (Operator Instructions). And for your information, this conference call is now being broadcasted live over the Internet, and webcast replay will be available within an hour after the conference is finished. Please visit CHT's IR website, www.cht.com.tw/ir, under the IR calendar section.

先生們女士們晚上好。歡迎參加中華電信電話會議，了解公司2012年全年經營業績。（操作說明）。供您參考，本次電話會議現通過互聯網進行現場直播，會議結束後一小時內將提供網絡直播重播。請訪問 CHT 的 IR 網站 www.cht.com.tw/ir，位於 IR 日曆部分。

Now I would like to hand it over to Fufu Shen, the Director of Investor Relations. Thank you. Ms. Shen, go ahead, please.

現在我想把它交給投資者關係總監沉福福。謝謝。沉女士，請講。

Thank you. This is Fufu Shen, Investor Relations Director of Chunghwa Telecom. Welcome to our fourth-quarter 2012 results conference call. Joining me on the call today are Dr. Lu, Chairman; Dr. Lee, President; and Dr. Yeh, CFO. During today's call, management will first discuss business, operational and financial highlights, then followed by Q&As.

謝謝。我是沉福福，中華電信投資者關係總監。歡迎參加我們的 2012 年第四季度業績電話會議。今天和我一起參加電話會議的是董事長盧博士；李博士，總裁；和首席財務官葉博士。在今天的電話會議中，管理層將首先討論業務、運營和財務要點，然後進行問答。

On slide number two, please note our Safe Harbor Statement.

在第二張幻燈片上，請注意我們的安全港聲明。

Now I would like to turn the call over the Chairman Lu. Thank you.

現在我想把電話轉給盧主席。謝謝。

Thank you, Fufu. Hello, everyone. This is Shyue-Ching Lu, Chairman of Chunghwa Telecom. Thank you all for joining our fourth-quarter 2012 earnings results conference call.

謝謝你，福福。大家好。我是中華電信董事長盧學慶。感謝大家參加我們的 2012 年第四季度收益電話會議。

On slide number three, I would like to report to you that our total and audited consolidated revenue reached TWD220.3b and net income was TWD40.1b, both within our 2012 guidance in spite of strong market competition and the continual tariff reductions from the NCC.

在第三張幻燈片上，我想向您報告，儘管市場競爭激烈且 NCC 不斷降低關稅，但經審計的總收入達到 TWD220.3b，淨利潤為 TWD40.1b，均在我們 2012 年的指導範圍之內。 。

2013 will remain a challenging year due to competition and the NCC tariff reduction continuing to exert pressure on our top line. Nevertheless, we have set a goal of maintaining revenue, controlling costs and investing effectively in fixed and mobile broadband construction, as well as emerging businesses, including ICT and cloud businesses in an effort to leverage our large infrastructural footprint by establishing new business opportunities and revenue streams.

由於競爭和 NCC 關稅削減繼續對我們的收入造成壓力，2013 年仍將是充滿挑戰的一年。儘管如此，我們仍設定了保持收入、控製成本的目標，並有效投資固定和移動寬帶建設以及包括ICT和雲業務在內的新興業務，以利用我們龐大的基礎設施足跡，創造新的商機和收入。溪流。

Moving on into slide number four, we have maintained a 90% dividend payout ratio for past few years, and this is expected to continue. Taking into consideration our cash position as well as the lower EPS in 2012 as compared with the previous years, we are thinking of the possibility of distributing a special dividend at the moment. Once we decide, we will report to you at an appropriate time.

進入第四張幻燈片，過去幾年我們一直保持 90% 的股息支付率，並且預計這種情況將持續下去。考慮到我們的現金狀況以及2012年每股收益較往年較低，我們目前正在考慮派發特別股息的可能性。一旦我們決定，我們將在適當的時間向您報告。

Now Dr. Lee, joining our earnings call for the first time, would like to report to you his business management plan after having assumed this position. His prior title in the Company was Senior Executive Vice President, responsible for marketing, sales, customer care and the information systems.

現在，李博士首次參加我們的財報電話會議，他想向大家報告他就任這一職位後的業務管理計劃。他在公司之前的職位是高級執行副總裁，負責營銷、銷售、客戶服務和信息系統。

Dr. Lee, please.

請李醫生。

Thank you, Chairman Lu. Hello, everyone. This is Yen-Sung Lee, President of Chunghwa Telecom. This is my first time during the earnings call and I am glad to share with you my [main general] plans for Chunghwa Telecom over the coming years.

謝謝盧主席。大家好。我是中華電信總裁李彥成。這是我第一次參加財報電話會議，我很高興與大家分享我對中華電信未來幾年的[主要總體]計劃。

Our key goal is to grow our user base across all our business lines. For 2013, we anticipate our mobile Internet user will grow by over 1m to 3.5m subscriber by the year end. This will be driven by our offering of more than [TWD20] price and large-screen smartphone handset, including exclusive ones, bundled with low price [pay frame] that we target on non-data customer. For fixed broadband service we aim to provide a higher number of customers with higher-speed service. For 2013 we expect to grow our customer base of 50 megabit per second connection or higher to over 1.5m.

我們的主要目標是擴大我們所有業務線的用戶群。 2013 年，我們預計到年底我們的移動互聯網用戶將增長超過 100 萬至 350 萬。這將受到我們針對非數據客戶提供超過 [TWD20] 價格和大屏幕智能手機（包括獨家產品）並捆綁低價 [付費框架] 的推動。對於固定寬帶服務，我們的目標是為更多的客戶提供更高速的服務。 2013 年，我們預計將每秒 50 兆或更高連接速度的客戶群增加到 150 萬以上。

Additionally, we expect to continue to grow our MOD/IPTV and the emerging ICT and the cloud business. We believe that such service will eventually leverage our high-speed fiber network by bringing faster, reliable and a cost-effective solution to our retail and enterprise customer. In order to enhance and streamline our [maturity] control approaches, we will aim to construct a comprehensive Internet value chain that will include the integration of better operation and support system.

此外，我們預計將繼續發展 MOD/IPTV 以及新興的 ICT 和雲業務。我們相信，此類服務最終將利用我們的高速光纖網絡，為我們的零售和企業客戶帶來更快、可靠且經濟高效的解決方案。為了增強和簡化我們的[成熟度]控制方法，我們將致力於構建一個全面的互聯網價值鏈，其中包括更好的運營和支持系統的集成。

This will further reduce internal red tape and enhance the coordination of our internal operation by creating a more seamless and efficient approaches for new service offering to the market. We believe this will help dramatically to improve the approaches for advocating internal Internet resource to all the areas of growth and to further enhance investment and the marketing decisions in order to be able to more effectively control cost and resource allocation. But enhancing this [with a maturity] control mechanism, we aim to further reduce internal operation -- operating experience and improve our performance for years to come.

這將通過為市場提供新服務創造更加無縫和高效的方法，進一步減少內部繁文縟節並增強我們內部運營的協調性。我們相信，這將有助於極大地改進將內部互聯網資源推廣到所有增長領域的方法，並進一步加強投資和營銷決策，以便能夠更有效地控製成本和資源分配。但增強這種[成熟的]控制機制，我們的目標是進一步減少內部運營——運營經驗，並提高未來幾年的業績。

Now I would like to discuss our 2013 business operating plan. Please refer to slide six for our mobile business. We continue to maintain our leadership by providing fast, reliable and seamless wireless access and, at the same time, a great customer service experience for our subscribers. This is exemplified by the fact that we grew our subscriber base by 197,000. In 2012, mobile Internet subscriber grew by over 34.6% year to year. And our churn rate remained at an (inaudible) of only 1.15% for December 2012.

下面我想談談我們2013年的經營計劃。我們的移動業務請參閱幻燈片六。我們通過提供快速、可靠和無縫的無線接入，同時為我們的用戶提供出色的客戶服務體驗，繼續保持我們的領先地位。我們的訂閱用戶數量增加了 197,000 人，這一事實就是例證。 2012年，移動互聯網用戶同比增長超過34.6%。 2012 年 12 月，我們的客戶流失率仍保持在（聽不清）僅為 1.15%。

For the first quarter of 2012, smartphone accounted for 75% of all new handset sales. As a percentage of postpaid subscribers, smartphone penetration increase to 38% at the end of the first quarter. In 2013 we target to increase smartphone penetration to 49% of all handsets sold.

2012 年第一季度，智能手機佔所有新手機銷量的 75%。截至第一季度末，智能手機滲透率佔後付費用戶的百分比增至 38%。 2013 年，我們的目標是將智能手機的普及率提高到所有手機銷量的 49%。

We will further introduce mid- to low-tier smartphones to expand mobile Internet subscriber base and accelerate 2G customer migration to 3G network to target the potential data user. In addition, we continue the expansion and the transformation of many of our retail stores. During the first quarter we (inaudible) to 25 service stores, bringing our total to 630 service center (inaudible).

我們將進一步推出中低端智能手機，擴大移動互聯網用戶群，加速2G客戶向3G網絡遷移，瞄準潛在數據用戶。此外，我們繼續對許多零售店進行擴張和轉型。第一季度，我們（聽不清）增加了 25 家服務店，使服務中心總數達到 630 個（聽不清）。

Moving to the slide seven, mobile Internet service revenue, one of our key drivers, continued its strong growth momentum in 4Q 2012, with over 63.7% year-to-year growth. We believe that this trend will remain sustainable as we continue to see the strong adoption of the smartphone and other mobile Internet devices, as well as the [proliferation] of digital product that further drive consumer engagement on our network.

轉向幻燈片七，我們的主要驅動力之一的移動互聯網服務收入在 2012 年第四季度繼續保持強勁的增長勢頭，同比增長超過 63.7%。我們相信，隨著我們繼續看到智能手機和其他移動互聯網設備的廣泛採用，以及進一步推動消費者參與我們網絡的數字產品的[擴散]，這一趨勢將保持可持續。

Slide eight shows the result of our broadband business as we aim to provide every phone in Taiwan the ability to stream any Internet-based content and entertainment option to (inaudible). We remain focused on building our fast fiber network to further enable such demands, in doing so, attracting new customers, while migrating existing broadband customer to higher-speed service continues to be our key strategy and focus. While competition in cable industry becoming more intense, we believe that our key differentiator will be the higher quality we offer through our competitive-priced fiber and ADS combinations. This is support our higher net addition of subscribers in the past years as compared with cable operators. For 2013, we are focused on promoting 100-meg fiber broadband service and expect to grow this space by 300,000 subscribers.

幻燈片八顯示了我們寬帶業務的成果，我們的目標是讓台灣的每一部手機都能夠傳輸任何基於互聯網的內容和娛樂選項（聽不清）。我們仍然專注於建設我們的快速光纖網絡，以進一步滿足這些需求，從而吸引新客戶，同時將現有寬帶客戶遷移到更高速的服務仍然是我們的關鍵戰略和重點。雖然電纜行業的競爭變得更加激烈，但我們相信，我們的關鍵差異化因素將是通過價格具有競爭力的光纖和 ADS 組合提供更高的質量。與有線電視運營商相比，這支持了我們過去幾年的用戶淨增加量較高。 2013年，我們重點推廣100兆光纖寬帶服務，預計用戶數量將增加30萬。

Broadband ARPU remained stable at TWD708m in the first quarter. We are also happy to see more subscribers sign up for higher-speed connections, which will contribute to, incrementally, ARPU growth over the long term. At the end of the 2012, subscribers signed up for 50-meg connections reached to 905,000 subscribers.

第一季度寬帶 ARPU 穩定在新台幣 7.08 億元。我們也很高興看到更多的用戶註冊更高速的連接，從長遠來看，這將有助於 ARPU 的逐步增長。截至 2012 年底，註冊 50 兆連接的用戶達到 905,000 名。

On slide nine, ARPU for MOD increased by over 7.3%, to TWD147 in the first quarter from [TWD133] in the prior -- past period. IPTV advertisement revenue almost doubled in second half of 2012 compared with that of the first half. This represents another great avenue for monetization opportunity for Chunghwa Telecom as we continue to grow our content offer on our network.

在第九張幻燈片上，MOD 的 ARPU 增長了 7.3% 以上，從上一季度的 [TWD133] 增至第一季度的 TWD147。 2012年下半年IPTV廣告收入較上半年幾乎翻倍。隨著我們不斷增加網絡上的內容供應，這代表了中華電信的另一個絕佳的盈利機會。

In addition, we are cooperating with Hong Hai to co-serve its 60-inch TV set with our IPTV service bundled together, providing customer with high-quality HD user experience. This effort will further increase customer stickiness and attract quality customers who are increasing demand more high-quality entertainment options. Since this business model proved to be successful, we will continue to cooperate with Hong Hai and other local TV manufacturers to co-market whatever size of TV set with other quality MOD service.

此外，我們還與鴻海合作，將其60英寸電視機與我們的IPTV服務捆綁在一起，為客戶提供高質量的高清用戶體驗。這一努力將進一步提高客戶粘性，吸引對更多高品質娛樂選擇需求日益增長的優質客戶。由於這種商業模式被證明是成功的，我們將繼續與鴻海和其他本地電視製造商合作，共同營銷任何尺寸的電視機以及其他優質的MOD服務。

On slide 10, our ICT and cloud computing business are growing in importance as a revenue contributor for Chunghwa Telecom. For our ICT business, we continue to focus on expanding our existing enterprise solutions, while at the same time looking to [put and] broaden our new offering to our enterprise customer. Because of this cost effect approach, we plan to leverage our existing infrastructure whilst scaling this enterprise solution with customer demand.

在幻燈片 10 中，我們的 ICT 和雲計算業務作為中華電信的收入貢獻者越來越重要。對於我們的 ICT 業務，我們繼續專注於擴展我們現有的企業解決方案，同時尋求[放置和]擴大我們為企業客戶提供的新產品。由於這種成本效益方法，我們計劃利用現有基礎設施，同時根據客戶需求擴展此企業解決方案。

On cloud business side, we are providing cloud service and solution to retail. And the enterprise account and [comment], we have been developing cloud core technology to offer innovative cloud services to our customers. We plan to continue to leverage our enterprise high-speed broadband network and offer VAS as well as explore other emerging service opportunity.

在雲業務方面，我們為零售業提供雲服務和解決方案。還有企業號和[評論]，我們一直在開發雲核心技術，為客戶提供創新的雲服務。我們計劃繼續利用我們的企業高速寬帶網絡並提供增值服務以及探索其他新興服務機會。

Recently we continued to acquire more major -- some major government projects and expect to inject additional revenue in this regard. All this year our focus will be more on cloud service to enterprise and retail customer. We believe that general acceptance of cloud services will take some time to develop, but as it may begin to gain traction and the market acceptance, we will position to benefit directly from our wide range of service.

最近我們繼續收購一些重大的政府項目，並期望在這方面注入額外的收入。今年我們的重點將更多地放在為企業和零售客戶提供的雲服務上。我們相信，雲服務的普遍接受度需要一段時間才能發展，但隨著它可能開始獲得關注和市場接受，我們將直接從我們廣泛的服務中受益。

Slide 12 provides an update on the regulator front. As you are all aware, the NCC has mandated mobile interconnection rate reduction from January 2, 2013, for four years, and the tariff reduction broadband service [IP peering] and domestic leased line wholesale service price reduction from April 1 for four years. We have incorporated the revenue impact driver from the regulation in guidelines for 2103.

幻燈片 12 提供了調節器前端的更新。眾所周知，NCC已強制要求自2013年1月2日起降低移動互聯資費，為期四年，寬帶服務資費下調[IP對等]和國內專線批發服務價格自4月1日起為期四年。我們已將法規中的收入影響驅動因素納入 2103 年的指導方針中。

For the Telecom Act, we would like to see the amendment to Telecom Act to be considered as part of a digital convergence that is (inaudible), along with the [three for] testing-related regulations in order to facilitate [close business] operator.

對於《電信法》，我們希望看到《電信法》修正案被視為數字融合的一部分（聽不清），以及[三為]測試相關法規，以便利[關閉業務]運營商。

Additionally, the NCC announced a draft for 4G technology-neutral license and spectrum bidding. However, the final awards are expected to be released by the June 30, 2013, and the bidding process, we have to finish it by the end of this year.

此外，NCC 還公佈了 4G 技術中立許可和頻譜招標草案。不過，最終的獎項預計在2013年6月30日之前公佈，而招標過程，我們必須在今年年底前完成。

Now I would like to hand it over to Dr. Yeh for our financial overview.

現在我想把我們的財務概況交給葉博士。

Thank you, President Lee, and good day, everyone. Thanks for joining us today. I will review our financial results in detail, beginning with slide 14.

謝謝李總統，大家好。感謝您今天加入我們。我將從幻燈片 14 開始詳細回顧我們的財務業績。

On slide 14 are our income statement highlights. While total revenue for the fourth quarter was 2.5% higher year over year and operating cost expenses, reported at 4.8%, increased year over year. As a result, income from operation and net income decreased by 5.6% and 8.9% respectively.

第 14 張幻燈片是我們損益表的重點內容。第四季度總收入同比增長 2.5%，運營成本支出同比增長 4.8%。營業收入和淨利潤分別下降5.6%和8.9%。

Please refer to slide 15 for our business segment revenues. Total revenue for the fourth quarter of 2012 increased by 2.52% year over year. This was primarily due to the growth in mobile VAS revenue, ICT revenue, handset sales and the international leased line, which offset the decline in voice and the broadband revenues.

我們的業務部門收入請參閱幻燈片 15。 2012年第四季度總收入同比增長2.52%。這主要是由於移動增值服務收入、ICT收入、手機銷售和國際專線收入的增長，抵消了語音和寬帶收入的下降。

Slide 16 shows the breakdown of operating cost and the expenses. Now operating cost and the expenses increase in the fourth quarter was mainly from the rising cost of handsets sold and the higher ICT project costs.

幻燈片 16 顯示了運營成本和費用的細目。目前第四季度運營成本和費用的增加主要是由於手機銷售成本的上升和ICT項目成本的上升。

As shown on slide 17, cash flow from operating activity decreased to TWD24.5b during the fourth quarter. This was mainly due to the decline in income from operations and increase in rent acquired by our property development subsidiary, as well as the exemption of deposits for mobile VIP customer. We maintained a strong cash position, with cash and the cash equivalents amounting to TWD53.2b as of December 31, 2012. Meanwhile, the EBITDA margin decrease was primarily due to the tariff cuts and the higher handset sales, of which the EBITDA margin is relatively lower than our traditional telecom services.

如幻燈片 17 所示，第四季度經營活動現金流量減少至 TWD24.5b。這主要是由於我們的房地產開發子公司的營業收入下降和租金增加，以及免除移動VIP客戶押金所致。我們保持強勁的現金狀況，截至 2012 年 12 月 31 日，現金及現金等價物達新台幣 53.2b。同時，EBITDA 利潤率下降主要是由於關稅削減和手機銷量增加，其中 EBITDA 利潤率為相對我們傳統的電信服務來說要低一些。

Slide 18 shows our 2013 consolidated guidance. Looking ahead at 2013, we will continue our strategical focus and the build-out and expansion of fiber and the mobile broadband network to provide quality services to customers and remain our market-leading position as staying ahead of the competition.

幻燈片 18 顯示了我們 2013 年的綜合指導。展望2013年，我們將繼續聚焦戰略重點，大力建設和拓展光纖和移動寬帶網絡，為客戶提供優質服務，保持市場領先地位，在競爭中保持領先地位。

Total revenue for 2013 is expected to decrease by TWD2.5b to TWD217.8b due to less construction revenue from our property development subsidiary, declines in voice revenue, mandated tariff reduction and the mobile Internet rate reduction. However, growth in mobile Internet revenue, broadband service revenue, MOD and the cloud computing service is expected to partially offset the decline.

由於我們的房地產開發子公司的建築收入減少、語音收入下降、強制資費下調以及移動互聯網資費下調，預計 2013 年總收入將減少 TWD2.5b 至 TWD217.8b。然而，移動互聯網收入、寬帶服務收入、MOD和雲計算服務的增長預計將部分抵消下降幅度。

Operating costs and expenses for 2013 are expected to increase by TWD1.5b for two reasons. First, bad debt reversal in 2012 versus the bad debt provision in 2013; second, depreciation, amortization, maintenance and the material expenses, which are expected to increase due to the promotion of our mobile content and broadband business in the cloud services. Furthermore, mobile interconnection expenses are expected to be reduced due to the mandate of the NCC and the construction cost to be decreased from the subsidiary Light Era. As a result, income from operations, EBITDA, comprehensive income attributable to owners of the parents and our EPS are expected to decrease as compared to 2012.

2013 年的運營成本和費用預計將增加 TWD1.5b，原因有二。首先，2012年壞賬轉回與2013年壞賬準備計提情況；第二，折舊、攤銷、維護和材料費用，預計由於我們在雲服務中移動內容和寬帶業務的推廣而增加。此外，由於NCC的授權以及子公司Light Era的建設成本預計將減少移動互連費用。因此，與 2012 年相比，運營收入、EBITDA、歸屬於母公司所有者的綜合收入和每股收益預計將有所下降。

On slide 19, as stated in our earlier guidance, we moderately increased our CapEx expenditure for 2012 with a focus on fixed and the mobile broadband construction. Budgeted, the CapEx for 2013 is TWD37.2b. The spending will continue focus on broadband and the mobile network construction and the cloud deployment, including cloud data center construction. Please also note that the 4G investments are not included in this estimate due to the inability to forecast this amount prior to the auction.

在幻燈片 19 中，正如我們之前的指導所述，我們適度增加了 2012 年的資本支出，重點關注固定和移動寬帶建設。根據預算，2013 年的資本支出為 TWD37.2b。支出將繼續集中在寬帶和移動網絡建設以及雲部署，包括雲數據中心建設。另請注意，由於無法在拍賣前預測該金額，因此 4G 投資不包含在該估算中。

We've increased the CapEx devoted to the abovementioned area. We have continued to significantly improve our customer experience and the satisfaction and we will further facilitate customer migration to higher-speed fiber solution and enhance the quality of our mobile network. We will review our CapEx budget and execution on a regular basis, focusing on making the most cost-effective spending decision possible.

我們增加了專門用於上述領域的資本支出。我們持續顯著改善客戶體驗和滿意度，並將進一步促進客戶遷移到更高速的光纖解決方案，並提高我們的移動網絡質量。我們將定期審查我們的資本支出預算和執行情況，重點是做出最具成本效益的支出決策。

Now I would like to hand over to Dr. Lu for business outlook.

現在我想請盧博士談談業務展望。

Thank you, Dr. Yeh. Moving onto slide number 20, looking ahead over the next couple of years, we have some general thoughts we'd like to share with you. Firstly, leveraging on our solid and quality customer base, expanded network capacity and enhanced network capabilities, we would like to further enhance our fixed and mobile VAS services, offering and promotions. Additionally, coupled with the trend of smart economy, we are offering ICT-enabling services, as well as cloud computing services.

謝謝葉博士。轉到第 20 號幻燈片，展望未來幾年，我們有一些總體想法想與您分享。首先，憑藉我們堅實優質的客戶基礎、擴大的網絡容量和增強的網絡能力，我們希望進一步增強我們的固定和移動增值服務、產品和促銷。另外，結合智能經濟的趨勢，我們提供ICT賦能服務，以及雲計算服務。

We are allocating more resources into leveraging our broadband network by providing more services over our fiber and mobile network, and believe this trend will continue as everyone's data needs grow with better connectivity.

我們正在分配更多資源，通過光纖和移動網絡提供更多服務，利用我們的寬帶網絡，並相信隨著每個人的數據需求隨著更好的連接而增長，這一趨勢將持續下去。

Secondly, as discussed, we plan to increase investment into further expanding our fixed and mobile broadband networks, as well as cloud-related infrastructure, by approximately 13% from 2012 level and will increase slightly and perhaps peak in 2014, after which we anticipate it beginning to slowly decline. We realize this is a big increase, but we deem it necessary in order to offer the services that we see emerging in an increasingly digital world.

其次，正如所討論的，我們計劃增加投資，進一步擴大我們的固定和移動寬帶網絡以及雲相關基礎設施，比 2012 年的水平增加約 13%，並將略有增加，並可能在 2014 年達到峰值，之後我們預計開始慢慢下降。我們意識到這是一個巨大的增長，但我們認為為了提供我們在日益數字化的世界中看到的服務，這是必要的。

Lastly, we expect to see EBITDA margin for our telecom businesses to stabilize in the coming couple of years. Of course, this does not take into consideration any new regulatory changes that may occur.

最後，我們預計電信業務的 EBITDA 利潤率將在未來幾年趨於穩定。當然，這並沒有考慮到可能發生的任何新的監管變化。

Thank you for your attention. And now we would like to open up for questions. Thank you.

感謝您的關注。現在我們願意開放提問。謝謝。

(Operator Instructions). The first question is from Joseph Quinn from Macquarie. Go ahead, please.

（操作員說明）。第一個問題來自麥格理的 Joseph Quinn。請繼續。

Thank you for the call and quite informative info on the presentation as well. I have two questions. One's focused around -- a brief one is more on the smartphone ARPU. I noticed it falls off in the fourth quarter. I just want to get some insights into what was driving that.

感謝您的來電以及有關演示的大量信息。我有兩個問題。一個重點是——簡短的一個重點是智能手機 ARPU。我注意到它在第四季度下降了。我只是想了解一下是什麼推動了這一趨勢。

The second question is around your broadband. So I see you're looking to add about 100,000 broadband subs in 2013, but you had a very slow growth in 2012, and actually in fourth quarter 2012 you've actually seen a decline. So I'm just wondering what you think is going to grow that top-line number for the broadband side.

第二個問題是關於你的寬帶。因此，我看到你們希望在 2013 年增加大約 100,000 個寬帶用戶，但 2012 年增長非常緩慢，實際上在 2012 年第四季度，你們確實看到了下降。所以我只是想知道您認為寬帶方面的收入增長會如何。

And thirdly in terms of the overall ICT cloud business, clearly on the CapEx side you're increasing your spend quite significantly there. Can we get a bit more insight into how much of that business or how much of your revenue is really coming from that business now? And is it possible that we'd get more clarity going forward maybe on a monthly or quarterly basis on just exactly what that accounts for?

第三，就整體 ICT 雲業務而言，顯然在資本支出方面，您正在大幅增加支出。我們現在能否更深入地了解該業務有多少或您的收入有多少真正來自該業務？我們是否有可能在每月或每季度的基礎上更清楚地了解這到底是什麼？

And just overall on your CapEx side, you said it looks likely to peak in 2014. Do you think that's realistic with the potential LTE rollout that you need to provide going forward? I'll stop there. Thank you.

就總體而言，在您的資本支出方面，您表示它可能會在 2014 年達到頂峰。您認為這對於您未來需要提供的潛在 LTE 推出來說是否現實？我就到此為止。謝謝。

I think to probably answer your question for -- on number two about the broadband subscriber number, okay, we do expect to increase a small amount of subscriber number in 2013. I think the reason for the -- in the fourth quarter 2012, you see the -- we have some decline. Basically the reason for the decline, I would like to give some explanation now.

我想也許可以回答您關於寬帶用戶數量的第二個問題，好吧，我們確實預計 2013 年會增加少量用戶數量。我認為原因是在 2012 年第四季度，您看到——我們有一些下降。基本上是下降的原因，我現在想給出一些解釋。

I think first of all, in the December we do have some -- we uninstalled some public WiFi. In certain area it's not really that effective and we plan to move to other areas, other locations. I think that's one of the reasons for the decline. The other part is you do understand we have -- we've been facing the competition from the cable guys.

我認為首先，在 12 月份我們確實有一些——我們卸載了一些公共 WiFi。在某些地區，它並不是那麼有效，我們計劃轉移到其他地區、其他地點。我認為這是下降的原因之一。另一部分是你確實了解我們——我們一直面臨來自有線電視公司的競爭。

So we try to -- we do have some customers try to disconnect the broadband service for the past -- for past year. So some of them we would like to retain them very hard. We try to pay a lot of effort to try to retain. But end of last year we decided to do the disconnections. So I think that's one-time for the end of last year. So I think that's probably my explanation for the fourth-quarter decline for the broadband subscriber number.

因此，我們確實有一些客戶嘗試在過去一年中斷開寬帶服務。所以我們非常想保留其中的一些人。我們努力付出很多努力來試圖留住。但去年年底我們決定斷開連接。所以我認為這是去年年底的一次性事件。所以我認為這可能是我對第四季度寬帶用戶數量下降的解釋。

But this year we mentioned about we would like to see more -- 300,000 subscribers for the above 50 megabits, this high-speed subscription. So I think the major resource is high-speed broadband subscriber for the adding.

但今年我們提到我們希望看到更多 - 300,000 名訂閱者使用 50 兆以上的高速訂閱。所以我認為主要的資源是高速寬帶用戶的增加。

I don't really have much -- I'm not very much concerned on you actually increasing your high-end speed. It's just how you intend to increase the overall user base.

我真的沒有太多——我不太關心你是否真的提高了你的高端速度。這正是您打算增加整體用戶群的方式。

Sorry, and just to follow up, in terms of you said you uninstalled some public WiFi, so should I be correct to assume that the 30-odd thousand hot spots is included as a -- every single user is one WiFi hot spot? Is it right to assume that?

抱歉，我想跟進一下，就您所說的您卸載了一些公共 WiFi 而言，那麼我是否正確地假設將 30 多個熱點包含為 - 每個用戶都是一個 WiFi 熱點？這樣的假設正確嗎？

Joseph, can you say it again?

約瑟夫，你能再說一遍嗎？

So you said in December you uninstalled some public WiFi hot spots.

所以你說12月份你卸載了一些公共WiFi熱點。

Yes.

是的。

Yes. So am I right to assume that the 30,000 WiFi hot spots that you have are included in your user base of broadband connections?

是的。那麼我的假設是否正確，即您擁有的 30,000 個 WiFi 熱點包含在您的寬帶連接用戶群中？

Yes, yes, because we -- right now when we're talking about broadband subscriber, this also includes some Internet things, some kind of machine-based, so it goes together.

是的，是的，因為我們——現在，當我們談論寬帶用戶時，這還包括一些互聯網事物，某種基於機器的東西，所以它們是在一起的。

Yes. Okay. Okay. Thank you.

是的。好的。好的。謝謝。

You're welcome.

不客氣。

I think the broadband subscriber will be increased due to -- maybe from some point of view. One is maybe we think a small SME maybe have a room to get into the more subscriber. And the second too may be review of ICT applications, like [ITS], like some [IOT] application. This is not just for humans; that's maybe for machine-to-machine operation. So maybe the broadband subscriber will be increased.

我認為寬帶用戶將會增加，因為——也許從某些角度來看。一是我們認為小型中小企業可能有空間吸引更多用戶。第二個也可能是對 ICT 應用程序的審查，例如 [ITS]，例如某些 [IOT] 應用程序。這不僅適用於人類；也適用於人類。這可能用於機器對機器的操作。所以也許寬帶用戶會增加。

Thank you. Is it possible, given obviously this divergence in growth, maybe more growth coming from ICT going forward and possibly it looks like more on the enterprise side as well, is it possible going forward we can get a split between where the subscribers for broadband are, where they lie?

謝謝。考慮到這種明顯的增長差異，未來ICT可能會帶來更多增長，企業方面也可能會出現更多增長，未來我們是否有可能在寬帶用戶之間進行劃分，他們躺在哪裡？

No. Our ICT and cloud businesses are included into our enterprise account revenue. So it's all accounted as there, okay? At this moment we do not offer separate numbers for these emerging businesses.

不會。我們的ICT和雲業務包含在我們的企業賬戶收入中。所以一切都按原樣算了，好嗎？目前，我們不提供這些新興業務的單獨數字。

And to answer your first question about the ARPU relatively lower than previous quarter, the Q4 slightly declined from Q3 of 2012. This is due to the fact that we promote the adoption of mid- to lower-tier smartphones to increase our customer base through our promotional packages. Overall this is good for the Company because we are upgrading in lower-ARPU customers hopefully to higher ARPU, or increase the number of customers with lower ARPU and that will somehow bring down the average.

回答你的第一個問題，關於 ARPU 相對於上一季度相對較低的問題，第四季度較 2012 年第三季度略有下降。這是由於我們通過我們的促銷套餐。總體而言，這對公司有利，因為我們希望將較低 ARPU 的客戶升級到更高的 ARPU，或者增加 ARPU 較低的客戶數量，這將在某種程度上降低平均水平。

The CapEx, this is our best forecast. We anticipate that it will be peak in 2014. Of course it depends on the pace how we roll out our 4G once we obtain the license from our government. And the faster pace would maybe require additional CapEx. But we do not make that assumption here, but because in our five-year planning we factor in introduction of 4G according to our reasonable assumption of the rollout pace. Yes. Okay?

資本支出，這是我們最好的預測。我們預計2014年會達到峰值。當然這取決於我們獲得政府牌照後我們推出4G的速度。更快的速度可能需要額外的資本支出。但我們在這裡不做這樣的假設，而是因為在我們的五年規劃中，我們根據我們對推出速度的合理假設考慮了 4G 的引入。是的。好的？

Okay. Thank you. Sorry, and just on the ICT, sorry, can I go back to that? Are you able to provide any at least top-line numbers in terms of what it provides for the overall business in terms of a percentage?

好的。謝謝。抱歉，只是關於 ICT，抱歉，我可以回到那個話題嗎？您是否能夠提供至少頂線數字，即它為整體業務提供的百分比？

Yes. For ICT cloud revenue, I think the revenue, we did not give the exact number. But growth rate, last year the growth rate is around -- is more than 50%. And this year the revenue growth will be also expected more than two-digit growth of cloud revenue.

是的。對於ICT雲收入，我認為收入，我們沒有給出確切的數字。但是增長率，去年的增長率大約是——超過 50%。而今年的收入增長預計也將是雲收入兩位數以上的增長。

Okay. Thank you. It would be good if you can give more detail later on possibly, given the volume of CapEx that you are spending on this division. Thank you.

好的。謝謝。考慮到您在該部門花費的資本支出量，如果您稍後可以提供更多詳細信息，那就太好了。謝謝。

The second question is coming from Chate Ben from Credit Suisse Hong Kong. Go ahead, please.

第二個問題來自瑞信香港的Chate Ben。請繼續。

Good afternoon, everyone, and thank you so much for the opportunity to ask questions. I have multiple questions. The first one is kind of general. Out of your FY'13 guidance, what do you see as a key upside risk and downside risk to that guidance? Okay?

大家下午好，非常感謝大家給我提問的機會。我有多個問題。第一個有點一般。在您 13 財年的指導中，您認為該指導的主要上行風險和下行風險是什麼？好的？

The second question is just a follow-up on ICT and cloud revenues. I understand that you cannot give us the headline figure, any much details about that. But just in terms of general profit contribution of it, do you think that the growth rate that you see right now would be significant enough for this ICT and cloud to start driving the EBITDA growth into 2014, or should we expect something of a longer term in nature compared to that?

第二個問題只是ICT和雲收入的後續問題。我知道您無法向我們提供總體數據以及任何相關細節。但就其總體利潤貢獻而言，您認為現在看到的增長率足以讓 ICT 和雲開始推動 EBITDA 增長到 2014 年，還是我們應該期待更長期的增長在本質上與之相比？

The third question is regarding the interconnection. I understand that the change in the interconnection rate both lowered your revenue and also lowered your cost. So just on a net-net basis, does lower interconnect actually benefit or hurt you, and to what magnitude, if you can share? Thank you.

第三個問題是關於互聯互通的問題。據我了解，互聯速率的變化既降低了你們的收入，也降低了你們的成本。因此，僅在網絡基礎上，較低的互連實際上對您有利還是有害？如果您可以分享的話，程度有多大？謝謝。

As I just discussed for the forecast, I think the upside, we still see some growth in mobile Internet revenue and also the broadband service, MOD and the cloud computing service. We expect it would grow in this year. And of course there are some downsides. They could decline in the voice revenue and also like mandated tariff reduction and also mobile interconnection rate reduction. All this area will decrease our revenue.

正如我剛才討論的預測，我認為好的一面是，我們仍然看到移動互聯網收入以及寬帶服務、MOD 和雲計算服務的一些增長。我們預計今年它會增長。當然也有一些缺點。他們可能會減少語音收入，並希望強制降低資費和移動互聯費率。所有這些領域都會減少我們的收入。

And on the cost side, we see that mainly the increase is because we want to maintain a high-quality service to our customers so that depreciation and amortization maintenance and the material expenses, we expect it would increase. So that's pretty much the upside and the downside of that.

在成本方面，我們看到增加主要是因為我們希望為客戶保持高質量的服務，因此我們預計折舊和攤銷維護以及材料費用將會增加。這就是它的優點和缺點。

And for the cloud revenue, I think currently it's still in early stage of business. But, however, we have to invest to secure. So currently we are (inaudible) the foundation for that business. So the amounts are still insignificant so we don't intend to disclose the detail yet.

至於雲收入，我認為目前仍處於業務早期階段。但是，我們必須進行投資才能確保安全。所以目前我們是（聽不清）該業務的基礎。因此，這些金額仍然微不足道，因此我們還不打算透露細節。

On interconnection cost, it's pretty much neutral. Of course it would decrease interconnection cost and -- but however, it will also decrease interconnection revenue. So to us it's it's kind of neutral, neutral one. Okay.

在互連成本方面，它幾乎是中性的。當然，這會降低互連成本，但是，它也會減少互連收入。所以對我們來說這是一種中立的、中立的。好的。

Okay. Thank you. Just a few follow-up questions, if you do not mind. Firstly is regarding your MOD services. Is it profitable at the current level? And if it's not, what kind of MOD subscriber scale or revenue scale you see it would contribute to profit in more significant way?

好的。謝謝。如果您不介意的話，只是幾個後續問題。首先是關於您的 MOD 服務。按照目前的水平，是否能夠盈利？如果不是，您認為什麼樣的 MOD 用戶規模或收入規模會以更顯著的方式貢獻利潤？

The second question is regarding the mandatory tariff reduction on the fixed line side. I understand the new [Exacter] is out there. I read through your presentation and it seems like this one would affect the fiber-to-the-desk circuit as well, FTTB. So does it mean that this would affect your fiber access revenue as well? Can you help the clarifying on that?

第二個問題是關於固網側強制降費的問題。我知道新的 [Exacter] 已經上市了。我通讀了您的演示文稿，看來這個演示文稿也會影響光纖到桌面電路（FTTB）。那麼這是否意味著這也會影響您的光纖接入收入？你能幫忙澄清一下嗎？

And then lastly is regarding the dividend. I understand that in there you said that you aim to maintain a stable dividend. Does it mean stable payout or actually a stable dividend per share and therefore it would mean then increase in payout to beyond 90%? Thank you very much.

最後是關於股息。據我了解，您在其中表示，您的目標是保持穩定的股息。這是否意味著穩定的派息或實際上是穩定的每股股息，因此意味著派息將增加到 90% 以上？非常感謝。

Yes. In terms of MOD, currently it's still not profitable yet. Yes, but I think the question is more than just how many subscribers. Of course we would work on increasing the subscribers. But on the other hand, we also have to figure out more ways to increase the revenue, such as advertisement and also how to have the customer use other additional packages, service of MOD. So that's the area -- we spend a lot of effort on that area. But it's not just straightforward to answer your question yet.

是的。 MOD方面，目前還沒有盈利。是的，但我認為問題不僅僅是有多少訂閱者。當然，我們會努力增加訂戶。但另一方面，我們也必須想出更多的方法來增加收入，比如廣告，以及如何讓客戶使用其他附加套餐、MOD服務。這就是這個領域——我們在這個領域花費了很多精力。但回答你的問題還不是那麼簡單。

Regarding to your question about the tariff reduction for this round, starting from April 1, yes it is going to include the fiber access part. And according to the NCC's announcement, I think this time fiber is included, but he mentioned about the speed higher than 100-meg per download and 40-meg upload is not included. I think that's the answer for your question.

關於你提到的本輪資費下調，從4月1日開始，是包括光纖接入部分。根據NCC的公告，我認為這次包括光纖，但他提到每次下載的速度高於100兆，不包括40兆上傳。我想這就是你問題的答案。

Just a quick follow-up before the question about dividend, regarding the fiber revenue that's going to be affected. Out of the total fiber access revenue that you have right now, fiber access subscribers, how much is actually higher than 100-meg and therefore will not be affected by this?

在關於股息的問題之前，我們先快速跟進一下將受到影響的光纖收入。在您現在擁有的光纖接入總收入中，光纖接入用戶中，有多少實際上高於 100 兆，因此不會受到此影響？

Okay. In terms of that, it's complicated to apply the rule. And so we have the number into -- incorporate the number into the guidance, but we don't want to provide the detailed number here.

好的。就這一點而言，應用該規則很複雜。因此，我們將這個數字納入指南中，但我們不想在這裡提供詳細的數字。

Okay, in terms of dividend, dividends are stable. Okay, the stable dividend, yes. As our Chairman just mentioned about since [this] year's -- last year's net income was low historically. And so we are still thinking the possibility of paying out additional, such as special dividend. That is a possibility we are discussing. But as our Chairman just mentioned, if there is any progress, we will report to you according to the law.

好吧，就股息而言，股息是穩定的。好吧，穩定的股息，是的。正如我們的主席剛才提到的，自今年以來，去年的淨利潤處於歷史低位。因此，我們仍在考慮支付額外股息的可能性，例如特別股息。這是我們正在討論的一種可能性。但是正如我們主席剛才提到的，如果有什麼進展，我們會依法向大家匯報。

And I think that currently the payout ratio of 90% in the past has been maintained, and we think that is a good idea. However, any dividend policy and the final amount is subject to the Board to decide. Thank you.

我認為目前過去90%的派息率一直保持著，我們認為這是一個好主意。然而，任何股息政策和最終金額均須由董事會決定。謝謝。

That's very clear. Thank you very much.

這非常清楚。非常感謝。

(Operator Instructions). The next question is coming from Joseph Quinn, Macquarie. Go ahead, please.

（操作員說明）。下一個問題來自麥格理的 Joseph Quinn。請繼續。

Thank you. And just a quick follow-up in terms of what you're talking about and a potential increase in payout. Can you run over briefly the priority in terms of cash usage? If my understanding is correct, operational uses will probably be the first area of call. And you have obviously increased your CapEx quite substantially in 2013 and there obviously will be quite a big burden from 4G auctions as well. Can you just put in perspective how that priority would work and how that would be different or if there's a different focus? Thanks.

謝謝。就您所談論的內容以及潛在的支出增加進行快速跟進。您能簡單介紹一下現金使用的優先順序嗎？如果我的理解是正確的，操作用途可能是第一個需要考慮的領域。 2013 年，您的資本支出顯然大幅增加，4G 拍賣顯然也會帶來相當大的負擔。您能否正確看待該優先事項將如何運作以及有何不同，或者是否有不同的重點？謝謝。

I think currently we still maintain what we have repeated many times before. Okay? Basically first we would like to have the cash for the CapEx so in order to maintain a long-term network quality. That is still top priority. But we also have some cash reserve before, so we have to take into consideration of the cash, what we have, and the possible CapEx requirement in the future. So that's why we're still debating whether we should have a special dividend or not.

我覺得目前我們還是維持以前多次重複的做法。好的？基本上，首先我們希望有足夠的現金用於資本支出，以便維持長期的網絡質量。這仍然是首要任務。但我們之前也有一些現金儲備，所以我們必須考慮現金、我們擁有的東西以及未來可能的資本支出需求。這就是為什麼我們仍在爭論是否應該派發特別股息。

So as the Chairman said, we are considering. So we still have to figure that out. Since, as we also mentioned, we still have in the next couple of years the 4G LTE and the other network CapEx among us, it looks like still substantial, so we have to calculate that very carefully. But at this stage we initiated the study of this issue but we haven't any decision yet. Thank you.

正如主席所說，我們正在考慮。所以我們還是要弄清楚這一點。正如我們還提到的，由於我們在未來幾年內仍然有 4G LTE 和其他網絡資本支出，看起來仍然很大，所以我們必須非常仔細地計算。但現階段我們已經開始研究這個問題，但還沒有做出任何決定。謝謝。

Thanks. That's very helpful.

謝謝。這非常有幫助。

Next in line is Piyush Mubayi from Goldman Sachs. Go ahead please and ask your question.

下一個是來自高盛的 Piyush Mubayi。請繼續問你的問題。

Good afternoon. Thank you for the chance to ask questions. Can I just ask a few questions related to your CapEx? Your CapEx slide is again into 2013, and I can understand that. Could you give us a feel whether 2013 in your view represents a peak or should we expect this to be the new level of spending for the firm given that this doesn't include LTE in the outer years?

下午好。感謝您給我提問的機會。我可以問一些與你們的資本支出相關的問題嗎？你的資本支出幻燈片再次進入 2013 年，我可以理解這一點。您能否讓我們感受一下您認為 2013 年是否代表了一個高峰，或者考慮到這不包括外部年份的 LTE，我們是否應該期望這成為​​公司支出的新水平？

The second is that could you give us a sense of whether the move to Taiwan IFRS makes a meaningful difference to the earnings?

第二個問題是，您能否讓我們了解一下轉向台灣國際財務報告準則是否會對盈利產生有意義的影響？

Those are my two questions and I'll follow up with another one. Thank you.

這是我的兩個問題，我將跟進另一個問題。謝謝。

The first question regarding the CapEx level, yes, from our estimate the level we put up this time for year 2013, this TWD37.7b is the new level. And we believe -- we also factor in the requirements for LTE during our discussion of five-year plan. And it indicated that with the reasonable pace of rollout, the statement that we just made about peaking at 2014 and going forward, slightly declining is probably the case. Unless the market changes so rapidly that we have to adjust our pace. That's maybe something that we have to consider when -- maybe one year later or two. Okay?

關於資本支出水平的第一個問題，是的，根據我們對 2013 年這次提出的水平的估計，TWD37.7b 是新水平。我們相信，在討論五年計劃時，我們也會考慮 LTE 的需求。這表明，隨著合理的推出速度，我們剛剛發表的有關 2014 年達到頂峰並在未來略有下降的聲明可能就是這樣。除非市場變化太快，我們不得不調整步伐。這也許是我們必須考慮的事情——也許是一兩年後。好的？

And related to this, what is your fiber-to-the-home coverage at the end of 2012 and where does your CapEx get us to at the end of 2013, please?

與此相關的是，2012 年底你們的光纖到戶覆蓋範圍是多少？2013 年底你們的資本支出將達到什麼水平？

Piyush, we do have a presentation. If you look at the end of the presentation, we do have a [reference out there]. The end of last year -- yes, end of last year, we have the fiber coverage, right. We have end of last year the penetration -- the home coverage is up to, for 100-meg, is up to 73.6%. And we do expect this percentage should be reaching 85% end of this year.

Piyush，我們確實有一個演示。如果你看一下演示文稿的結尾，我們確實有一個[參考]。去年年底——是的，去年年底，我們有了光纖覆蓋，對吧。我們去年年底的滲透率——家庭覆蓋率高達 100 兆，高達 73.6%。我們預計這一比例到今年年底將達到 85%。

Okay. And then it flattens. So end of this year onwards, the pressure from fiber will reduce in terms of CapEx?

好的。然後它變平。那麼從今年年底開始，光纖對資本支出的壓力會減輕嗎？

Yes.

是的。

Okay. Super.

好的。極好的。

Okay. In terms of IFRS impact, last year we are required to provide the possible impact in the quarterly report, so please refer to quarterly report. And since this year's financial report is not yet out yet, so we don't have any number to discuss yet. Thank you.

好的。在IFRS影響方面，去年我們需要在季報中提供可能的影響，所以請參考季報。由於今年的財務報告還沒有出來，所以我們還沒有任何數字可以討論。謝謝。

Okay. Thank you very much.

好的。非常感謝。

Yes. Piyush, also for your information, we do have some major impact in the description in the first quarter 2012 in this result presentation. You can also check it out to see it. Okay?

是的。 Piyush，也供您參考，我們在本結果演示中的 2012 年第一季度的描述中確實產生了一些重大影響。您也可以檢查一下看看。好的？

All right. So the next question is coming from Gary Yu, Morgan Stanley. Please ask your question.

好的。下一個問題來自摩根士丹利的 Gary Yu。請提出你的問題。

Hi. Thank you for the opportunity to ask a question. I just have one question on the broadband side. Given last year you had quite a substantial price reduction for both ADSL and fiber, do you expect something similar in 2013? I know the regulator has [X] value reduction requirement for ADSL and fiber. But is there anything more substantial than that that you expect for 2013, similar to what you did last year? Thank you.

你好。感謝您給我提問的機會。我只有一個關於寬帶方面的問題。鑑於去年 ADSL 和光纖價格都大幅下調，您預計 2013 年也會出現類似情況嗎？我知道監管機構對 ADSL 和光纖有 [X] 值降低要求。但有什麼比您對 2013 年的預期更實質性的事情嗎？與您去年所做的類似？謝謝。

I think in our financial guidance, we do estimate the possible impacts of those price reductions. But however, some of the detail of the regulation isn't really out yet. So we have some assumptions, and we don't like to share these assumptions to you yet. But we do consider those factors. Thank you.

我認為在我們的財務指導中，我們確實估計了這些降價可能產生的影響。但該法規的一些細節尚未真正出台。所以我們有一些假設，但我們還不想與您分享這些假設。但我們確實考慮了這些因素。謝謝。

Okay. Thank you.

好的。謝謝。

Next in line, [Lucy Liu] from JPMorgan. Go ahead, please.

下一個是來自摩根大通的[Lucy Liu]。請繼續。

Hi. Thank you very much. I have two questions. One is on your mobile strategy in 2013. I think you mentioned that the competition is still quite fierce. But I just wonder what exactly the competition [are fiercing], because in my view I think that the competition environment in Taiwan mobile side is actually quite benign. But I think just from your perspective, I think you've been losing some market share in the last year. And I just wonder now, given the mobile CapEx has been increased last year, and so last year [it seems like] the network has improved, so what's your main strategy to do this year? Is that going to do more low-end and mid-end migration, or what are the other new strategies you're going to implement?

你好。非常感謝。我有兩個問題。一是關於你們2013年的移動戰略。我想你們提到競爭還是相當激烈的。但我只是想知道競爭到底是什麼，因為我認為台灣移動端的競爭環境其實是相當良性的。但我認為，從您的角度來看，去年您已經失去了一些市場份額。我現在只是想知道，鑑於去年移動資本支出有所增加，因此去年[看起來]網絡有所改善，那麼今年您的主要策略是什麼？是否會進行更多的中低端遷移，或者您將實施哪些其他新策略？

Number two question is on your 4G. So I just wonder that do you have an estimate about how much in terms of the (inaudible) you're going to put in terms of bidding for the spectrum. And also after getting that, are you going to be aggressively rolling out to 4G or you're going to do it gradually, on a more smooth pace? Thank you.

第二個問題是關於你的 4G 的。所以我只是想知道您是否有一個關於您將在頻譜競標方面投入多少（聽不清）的估計。而且在了解這一點之後，您是否會積極地推出 4G，還是會以更平穩的速度逐步進行？謝謝。

For mobile strategy, this year we set aggressive target for mobile Internet business. We want to net add subscriber number to increase the amount, is 1b. And we're also trying to [sell] the smartphone to mid and low-end smartphone. For this, and as the new promotion plan already in place, we offer more than 20 lower-price and large-screen smartphone handsets. That's where we increase the smartphone subscriber number.

在移動戰略方面，今年我們為移動互聯網業務制定了積極的目標。我們要淨增加訂戶數來增加金額，就是1b。我們還試圖將智能手機[銷售]到中低端智能手機。為此，隨著新的促銷計劃已經到位，我們提供了20多款低價大屏智能手機。這就是我們增加智能手機用戶數量的地方。

And for the mobile Internet, will be accelerated migration of 2G custom to 3G. And we will offer different tier smartphones and a low price plan for different data service provider -- service subscribers. Thank you.

而對於移動互聯網來說，將會加速2G定制向3G的遷移。我們將為不同的數據服務提供商（服務訂戶）提供不同級別的智能手機和低價計劃。謝謝。

Your second question is regarding the amount. I'm afraid that it's not appropriate for me to say any figure at this moment. Okay? This is an option.

你的第二個問題是關於金額的。恐怕我現在不適合透露任何數字。好的？這是一個選項。

But how about the network rollout strategy after getting 4G?

但獲得4G後的網絡部署策略又如何呢？

Pardon me?

對不起？

Sorry. Just wonder what's your strategy of network upgrade after getting the 4G license? So is that going to be done gradually or you want to just reverse some negative momentum gain on mobile so you want to accelerate the network upgrade?

對不起。不知道拿到4G牌照後，你們的網絡升級策略是什麼？那麼，這是要逐步完成還是您只是想扭轉移動領域的一些負面勢頭，從而加速網絡升級？

Well our 4G, once we obtain the license, we will roll out in a very cost-effective manner so that we'll maintain -- maybe still have some 2G subscribers, 3G subscribers, 3G network and the 4G network. We will consider all this together to be competitive and yet cost-effective, yes.

那麼我們的4G，一旦我們獲得許可證，我們將以非常具有成本效益的方式推出，這樣我們就可以維持——也許仍然有一些2G用戶、3G用戶、3G網絡和4G網絡。是的，我們會將所有這些綜合起來考慮，既具有競爭力，又具有成本效益。

Okay. Thank you.

好的。謝謝。

Next question is coming from Piyush Mubayi from Goldman Sachs. Go ahead, please.

下一個問題來自高盛的 Piyush Mubayi。請繼續。

Sorry. My question is already asked. Thank you.

對不起。我的問題已經被問到了。謝謝。

(Operator Instructions). If there isn't any more questions, I will turn it back over to Dr. Lu. Dr. Lu, please proceed.

（操作員說明）。如果沒有問題的話我就轉交給盧博士了。盧博士，請繼續。

Okay. Thank you very much for joining our conference call on the results of the fourth quarter of 2012. Thank you very much for joining us. Good night from Taipei.

好的。非常感謝您參加我們關於 2012 年第四季度業績的電話會議。非常感謝您參加我們。台北的晚安。

Thank you, Chairman Lu. Thank you for your participation in Chunghwa Telecom's conference. There will be a webcast replay within one hour. Please visit www.cht.com.tw/ir under the IR calendar section. You may disconnect now. Have a good one and good bye.

謝謝盧主席。感謝您參加中華電信的會議。一小時內將進行網絡廣播重播。請訪問 www.cht.com.tw/ir 的 IR 日曆部分。您現在可以斷開連接。祝你玩得開心，再見。