Chunghwa Telecom Co Ltd (CHT) 2013 Q1 法說會逐字稿

Good evening, ladies and gentlemen. Welcome to the Chunghwa Telecom conference call for the Company's first quarter 2013 operating results. During the presentation, all lines will be on listen-only mode. (Operator Instructions).

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 2013 年第一季度經營業績。在演示期間，所有線路都將處於只聽模式。 （操作員說明）。

For your information, this conference call is now being broadcasted live over the Internet. Webcast replay will be available within an hour after the conference is finished. Please visit the CHT IR website, www.cht.com.tw/ir under the IR Calendar section.

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 IR 網站 www.cht.com.tw/ir 的 IR 日曆部分。

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

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. Welcome to our first quarter 2013 results conference call. Joining me on the call today are Dr. Lee, Chairman; Mr. Shih, President and Dr. Yeh, CFO. During today's call, management will first discuss business, operational and financial highlights, then followed by Q&A.

謝謝。這是沉福福。歡迎參加我們的 2013 年第一季度業績電話會議。今天和我一起參加電話會議的是董事長李博士；施先生，總裁，葉博士，首席財務官。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 to Chairman Lee.

現在我想把電話轉給李主席。

Thank you, FuFu. Hello, everyone. This is Yen-Sung Lee, the newly appointed Chairman of Chunghwa Telecom. Thank you all for joining our first quarter 2013 earnings results conference call.

謝謝你，福福。大家好。我是新任中華電信董事長李彥成。感謝大家參加我們 2013 年第一季度收益電話會議。

To begin with, as the new Chairman, I would like to inform the investment community that we will not be making any sudden changes and aim to maintain our Company's strong vision and direction and we will remain focused on the successful execution of these strategies.

首先，作為新任董事長，我想告知投資界，我們不會做出任何突然的改變，我們的目標是保持公司堅定的願景和方向，我們將繼續專注於這些戰略的成功執行。

And I'm also excited to introduce Mr. Mu-Piao Shih, our new President to you. Mr. Shih was the Company's Senior Executive Vice President in charge of the corporate planning and network deployment at Chunghwa Telecom. Prior to that, he was the President of the Company's mobile business. With his extensive and diverse business operation experience, we are sure that he will contribute a lot to the Company's strategic execution and business development going forward.

我也很高興向大家介紹我們的新任總裁施木標先生。施先生曾任本公司高級執行副總裁，負責中華電信的企業規劃及網絡部署。在此之前，他擔任公司移動業務總裁。憑藉其豐富多樣的業務運營經驗，我們相信他將為公司未來的戰略執行和業務發展做出巨大貢獻。

Another important [area] to address is regarding the election of our Board members in our upcoming Annual General Meeting. In order to improve Chunghwa Telecom's overall corporate governance position, we will increase the number of Independent Directors on our Board from three to five members, out of the total of 13 members. We believe this step clearly demonstrates our commitment to improving Chunghwa Telecom's overall corporate governance.

另一個需要解決的重要[領域]是關於在即將舉行的年度股東大會上選舉我們的董事會成員。為了改善中華電信整體企業治理狀況，我們將把董事會的獨立董事人數從三名增加到五名，從13名成員中增加。我們相信這一舉措清楚地表明了我們對改善中華電信整體公司治理的承諾。

Moving on to slide three, our first quarter operating results. We are proud to say that we have outperformed our competitors in adding more mobile Internet subscribers since December 2012. This resulted in a 42.2% year-to-year increase in mobile VAS revenue in the first quarter this year. As our Broadband and MOD subscriber numbers in the first quarter remained flat, we will offer fiber convergence plan, combining our MOD Family package to stimulate subscriber growth for these two businesses.

接下來看第三張幻燈片，我們第一季度的運營業績。我們很自豪地說，自2012年12月以來，我們在增加更多移動互聯網用戶方面優於競爭對手。這導致今年第一季度移動增值服務收入同比增長42.2%。由於第一季度我們的寬帶和 MOD 用戶數量保持平穩，我們將提供光纖融合計劃，結合我們的 MOD 系列套餐來刺激這兩項業務的用戶增長。

Moving on to slide four. As we understand the importance of dividend distribution to our investors, the Board approved a special cash dividend of TWD0.7205 per share from capital surplus. Including the earnings distribution of TWD4.6295 per share for fiscal year 2012, the total amount of payment to shareholders will be TWD5.35 per share. A timetable will be announced following shareholder approval of this proposal at the AGM scheduled to be held on June 25, 2013.

繼續看第四張幻燈片。深知股利分配對投資者的重要性，董事會通過資本公積金派發每股新台幣0.7205元的特別現金股利。加上2012財年每股收益分配4.6295新台幣，股東支付總額為每股5.35新台幣。時間表將在定於 2013 年 6 月 25 日舉行的年度股東大會上獲得股東批准後公佈。

Now President Shih, joining our earnings call for the first time. He would like to lead you through our business overview.

現在，施總裁首次參加我們的財報電話會議。他願意引導您了解我們的業務概況。

Thank you, Chairman Lee. Please refer to the slide number six for our mobile business. In the first quarter, mobile Internet service performance was outstanding. Our mobile Internet subscriber represented a strong growth of 59.6% year over year to 2.87m, resulting in an increase of our mobile Internet subscriber market share to over 33.3%.

謝謝李主席。我們的移動業務請參閱第六張幻燈片。一季度，移動互聯網業務表現突出。移動互聯網用戶同比增長59.6%至287萬戶，移動互聯網用戶市場份額增長至33.3%以上。

Also our mobile data revenue growth rate was 42.2% year over year, significantly higher than our peers. Also taking into consideration the ending of the 20% discount for subscribers whose data usage is less than 1 gigabit, we still maintained the highest growth rate.

此外，我們的移動數據收入同比增長率為42.2%，顯著高於同行。再考慮到數據使用量低於1GB的用戶20%折扣的結束，我們仍然保持了最高的增長率。

We believe that the success was partly due to our strategy to migrate our 2G subscribers to 3G service through attractive promotions. These promotions helped stimulate increased smartphone adoption and mobile internet subscriptions, proving the effectiveness of our strategy.

我們相信，成功的部分原因在於我們通過有吸引力的促銷活動將 2G 用戶遷移到 3G 服務的戰略。這些促銷活動有助於刺激智能手機的採用和移動互聯網訂閱的增加，證明了我們戰略的有效性。

On slide number seven, our focus on promoting the mid- to low-end smartphones is one of the major reasons for our continuously increasing mobile internet revenue and subscriber numbers. In the first quarter we successfully migrated 2G customers to 3G network with the smartphone adoption. Thus, we will continue this effort by introducing more mid- to low-end smartphone models and tablets and continue to expand this data service subscriber base while enhancing top-tier smartphone subscribers' stickiness.

在第七張幻燈片中，我們重點推廣中低端智能手機是我們移動互聯網收入和用戶數量持續增長的主要原因之一。第一季度，隨著智能手機的普及，我們成功地將 2G 客戶遷移到 3G 網絡。因此，我們將繼續努力，推出更多中低端智能手機型號和平板電腦，並繼續擴大數據服務用戶群，同時增強頂級智能手機用戶的粘性。

Slide number eight shows the results for our broadband business. During the quarter, we continued to see the strong migration of subscribers to higher speed fiber services. We experienced over 82% year-over-year growth in the numbers of subscribers opting for speed of 50 megabits per second and higher, growing to more than 960,000 in the first quarter.

第八張幻燈片顯示了我們寬帶業務的結果。在本季度，我們繼續看到用戶向更高速光纖服務的強勁遷移。選擇每秒 50 兆及以上速度的用戶數量同比增長超過 82%，第一季度增長至超過 96 萬。

In addition we reduced our broadband service tariff in April to facilitate subscriber migration to higher speed fiber services. Overall, even though total broadband subscriber numbers remained flat in the first quarter, we continue to encourage our subscriber to migrate to higher speed fiber offering by offering attractive fiber convergence plan that combines our fiber solution with MOD family packages, leveraging both our network footprint and the diverse content offering.

此外，我們在四月份降低了寬帶服務資費，以促進用戶遷移到更高速的光纖服務。總體而言，儘管第一季度寬帶用戶總數保持平穩，但我們繼續鼓勵我們的用戶遷移到更高速度的光纖產品，提供有吸引力的光纖融合計劃，將我們的光纖解決方案與 MOD 系列套餐相結合，利用我們的網絡足跡和多樣化的內容提供。

As social networking activity became -- become more integrated in our daily lives, we aim to also leverage our fast connections by cross-selling additional services like the hicloud box storage service into our large customer base.

隨著社交網絡活動越來越融入我們的日常生活，我們的目標是通過向我們龐大的客戶群交叉銷售 hicloud 盒存儲服務等附加服務來利用我們的快速連接。

On slide number nine, our IPTV revenue increased by over 8.4% year over year and advertising revenue doubled in the first quarter of year 2013. On the advertising front, we are increasingly focused on working with channel partners to aggressively grow our advertising revenue. We believe that advertisers are increasingly looking for such marketing opportunities and we will continue to focus on this opportunity throughout the year.

在第九張幻燈片中，我們的 IPTV 收入同比增長超過 8.4%，廣告收入在 2013 年第一季度翻了一番。在廣告方面，我們越來越注重與渠道合作夥伴合作，積極增加我們的廣告收入。我們相信廣告商越來越多地尋找這樣的營銷機會，我們將在全年繼續關注這個機會。

Even though the growth of the MOD subscriber was slow in the first quarter, we observed a moderate net add of 2,000 subscribers in April. We aim to offer new promotions to cross-sell our MOD and broadband service together in order to further stimulate subscriber growth.

儘管第一季度 MOD 用戶的增長緩慢，但我們觀察到 4 月份的用戶淨增加量適度為 2,000 名。我們的目標是提供新的促銷活動來交叉銷售我們的 MOD 和寬帶服務，以進一步刺激用戶增長。

In addition, we continued to encourage the adoption of our digital convergence services offerings by further enhancing this growing platform. By integrating our networks and leveraging our cloud technology, we are able to offer services like multi-screen MOD at any time via any device. Furthermore, we will continue our marketing campaign with HonHai Foxconn with the Big TV and plan to duplicate this model by cooperating with other local TV manufacturers, offering our high quality MOD programs combined with the HDTV to enhance user experience.

此外，我們通過進一步增強這個不斷發展的平台，繼續鼓勵採用我們的數字融合服務產品。通過整合我們的網絡並利用我們的雲技術，我們能夠隨時通過任何設備提供多屏 MOD 等服務。此外，我們將繼續與鴻海富士康的大電視營銷活動，併計劃通過與其他本地電視製造商合作複製這一模式，提供與高清電視結合的高質量MOD節目，以增強用戶體驗。

On slide number ten, we will continue to leverage the core telecom infrastructure and services to expand the services including cloud computing, energy saving, information security, intelligent buildings and IOT services. This year, our key focus will remain on promoting the cloud services, including the government cloud, virtual private cloud for major accounts, SaaS for SMEs and personal cloud for retail customers. In addition, we will also focus on offering ICT applications on information security to enterprise customers and intelligent buildings that helps increase the customers' asset value.

在第十張幻燈片中，我們將繼續利用核心電信基礎設施和服務拓展雲計算、節能、信息安全、智能建築和物聯網服務等服務。今年我們的重點還是推廣云服務，包括政府雲、大客戶虛擬私有云、中小企業SaaS、零售客戶個人云等。此外，我們還將重點為企業客戶和智能樓宇提供信息安全方面的ICT應用，幫助客戶提升資產價值。

Slide number 12 provides an update on the regulatory front. As you are all aware, the NCC mandated mobile interconnection rate reduction became effective as of January 5, 2013 for the next four years. Accordingly, we have reduced our mobile voice tariff. Additionally, the tariff reduction for broadband services, IP peering and domestic leased line wholesale also began as of April for the next four years.

第 12 號幻燈片提供了監管方面的最新情況。眾所周知，NCC 強制降低移動互聯費率自 2013 年 1 月 5 日起生效，有效期為四年。因此，我們降低了移動語音資費。此外，寬帶服務、IP對等互連和國內專線批發的資費下調也從4月份開始，為期四年。

For the Telecom Act, the NCC provided an amended draft in February 2013, after it was returned by the Executive Yuan in October last year, for reconsideration. From Chunghwa's perspective, we would like to see the amendment of the Telecom Act to be considered as part of the Digital Convergence Legislation along with the three broadcasting related regulations, in order to facilitate and streamline the cross-business operations.

對於《電信法》，國家通訊委員會於去年10月向行政院發回复議後，於2013年2月提出修訂草案。從中華的角度來看，我們希望看到《電信法》修正案與三項廣播相關法規一起被視為數字融合立法的一部分，以促進和簡化跨業務運營。

Additionally, regarding the free IP peering issue, the NCC held a public hearing on April 25 to collect opinions from the stakeholders and the academics since the related draft amendment announced in September last year caused a lot of disputes. We have maintained our position that the NCC should revoke the draft because it does not conform to internationally accepted practices, which advocate light regulation and business negotiation amongst ISPs. To the best of our knowledge, we are not aware of any case in any market where a government authority has imposed such regulation on IP peering.

此外，關於免費IP對等問題，由於去年9月公佈的相關修正案草案引起了很大爭議，NCC於4月25日舉行了公開聽證會，收集利益相關者和學術界的意見。我們堅持認為NCC應該撤銷該草案，因為它不符合國際公認的慣例，即主張互聯網服務提供商之間實行寬鬆的監管和商業談判。據我們所知，我們尚未發現任何市場上有任何政府機構對 IP 對等互連實施此類監管的案例。

Finally, the final rules for the 4G technology-neutral licenses are expected to be released this month. We are studying our options and have begun to prepare our bidding strategies in order to acquire the desired licenses and the spectrum by November this year.

最後，4G技術中立牌照的最終規則預計將於本月發布。我們正在研究我們的選擇，並開始準備我們的投標策略，以便在今年 11 月之前獲得所需的許可證和頻譜。

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

現在我想把我們的財務概況交給葉博士。謝謝。

Thank you, President Shih, and good day, everyone. Thanks for joining us today. I will review our financial results in detail beginning with the slide 14. On slide 14 are our income statement highlights.

謝謝施主席，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。幻燈片 14 是我們損益表的重點內容。

Total revenue for the first quarter grew by 2.1% and operating cost and expenses increased by 3.1% year over year. As a result, income from operation and the net income decreased by 2% and 4.7% respectively. In addition the EBITDA margin decreased from 35.21% to 34.02% in the first quarter as compared to the same period last year.

第一季度總收入同比增長2.1%，運營成本和費用同比增長3.1%。受此影響，營業收入和淨利潤分別下降2%和4.7%。此外，與去年同期相比，第一季度的 EBITDA 利潤率從 35.21%下降至 34.02%。

Please refer to slide 15 for our business segment review. Our total revenue increase was driven by 42.2% year-over-year growth in mobile VAS revenue and a 17% growth in handset sales. This strong growth was mainly driven by our mobile Internet subscriber increase.

請參閱幻燈片 15 了解我們的業務部門回顧。我們的總收入增長得益於移動增值服務收入同比增長 42.2% 和手機銷量增長 17%。這一強勁增長主要得益於我們的移動互聯網用戶增長。

Local service revenue decreased by 7.6% mainly due to mobile and VoIP substitution. In addition, the higher declining rate is attributed to the mobile promotional package offering as well as an increase of the amortization period of fixed line installation revenue beginning earlier this year.

本地服務收入下降7.6%，主要是由於移動和VoIP替代。此外，較高的下降率還歸因於移動促銷套餐的推出以及今年早些時候開始的固網安裝收入攤銷期限的延長。

Moreover, the 15.2% revenue decline in the DLD business was primarily due to tariff reduction which began in January 2012 and was reflected one month later in the February 2012 financial resulting in a higher year-over-year comparison basis.

此外，DLD 業務收入下降 15.2%，主要是由於 2012 年 1 月開始的關稅下調，一個月後反映在 2012 年 2 月的財務報告中，導致同比比較基礎較高。

Mobile voice revenue decreased 7.8% due to promotional packages and the mandatory tariff reduction. If we factor out the mandated interconnection rate reduction, starting this year, the declining rate is similar to previous quarters.

由於促銷套餐和強制資費下調，移動語音收入下降 7.8%。如果我們剔除強制互聯費率降低的因素，從今年開始，下降率與前幾個季度相似。

On slide 16, the operating cost and the expenses increased 3.1% year over year. The increase in operating costs was mainly from the rising cost of handsets sold, resulting from a strong mobile Internet and handset sales growth during the quarter. Operating expenses increased primarily because of higher marketing expenses including bad debt as well as personnel and rental expenses related to Chunghwa and the subsidiary's channel expansion.

在幻燈片 16 中，運營成本和費用同比增長 3.1%。運營成本的增加主要是由於本季度移動互聯網和手機銷售的強勁增長導致手機銷售成本上升。運營費用增加主要是由於營銷費用增加，包括壞賬以及與中華和子公司渠道擴張相關的人員和租金費用。

As shown on slide 17, cash flow from operating activity decreased to TWD8.5b during the first quarter. This was mainly due to the delay of bill payments due to holidays and the higher handset procurement quantity which was necessary to meet customer demand.

如幻燈片 17 所示，第一季度經營活動現金流量減少至 TWD8.5b。這主要是由於節假日導致賬單支付延遲以及為滿足客戶需求而需要增加手機採購量。

We maintained a strong cash position with cash and the cash equivalents amounting to TWD35.1b as of March 31 this year.

截至今年 3 月 31 日，我們保持著強勁的現金狀況，現金和現金等價物達新台幣 35.1b。

Meanwhile, the EBITDA margin decrease was primarily due to the tariff cuts and the higher handset sales, of which EBITDA margin is lower than our traditional telecom services.

與此同時，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 利潤率低於我們的傳統電信服務。

In addition, please refer to the note number three for the different definitions of cash and the cash equivalents under our ROC GAAP and T-IFRS, which explains the lower cash position by the end of the first quarter of this year.

此外，請參閱註釋三，了解我們的 ROC GAAP 和 T-IFRS 下現金和現金等價物的不同定義，這解釋了今年第一季度末現金狀況較低的原因。

Slide 18 shows our 2013 first quarter results as compared to our guidance for the quarter. We achieved relatively higher revenue, operating income, net income and the EBITDA as compared to our first quarter guidance, which was mainly attributable to higher handset sales and the mobile VAS revenues. However EBITDA margin was lower than expected due to the lower margin for handsets. Currently, we expect our full-year operating results to remain in line with our earlier guidance.

幻燈片 18 顯示了我們 2013 年第一季度的業績與該季度指導的比較。與第一季度指導相比，我們實現了相對較高的收入、營業收入、淨利潤和 EBITDA，這主要歸因於手機銷量和移動增值服務收入的增加。然而，由於手機利潤率較低，EBITDA 利潤率低於預期。目前，我們預計全年經營業績將與我們之前的指導保持一致。

Lastly, on slide 19, budgeted CapEx for this year is TWD37.2b. The spending will continue to focus on broadband and the mobile network construction and cloud deployment including cloud datacenter construction. We will review our CapEx budget and the execution plan on a regular basis, focusing on making the most cost-effective spending decisions possible.

最後，在幻燈片 19 中，今年的預算資本支出為 TWD37.2b。支出將繼續關注寬帶和移動網絡建設以及包括雲數據中心建設在內的雲部署。我們將定期審查我們的資本支出預算和執行計劃，重點關注盡可能做出最具成本效益的支出決策。

With increased CapEx devoted to this area, we aim to continue improving our customer offerings, experience and satisfaction. By facilitating customer migration to 3G service and the higher speed fiber solution, we hope to enhance the quality of their overall experience on our network, providing the best customer experience available in Taiwan.

隨著該領域投入的資本支出增加，我們的目標是繼續改善我們的客戶產品、體驗和滿意度。通過促進客戶遷移到 3G 服務和更高速的光纖解決方案，我們希望提高他們在我們網絡上的整體體驗質量，提供台灣最佳的客戶體驗。

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

感謝您的關注，現在我們願意接受提問。

We will now begin our question and answer session. (Operator Instructions). The first question is coming from Lucy Liu from JP Morgan. Go ahead please.

我們現在開始問答環節。 （操作員說明）。第一個問題來自摩根大通的Lucy Liu。請繼續。

Hi, thank you very much for the opportunity to ask questions. So I have three main questions. One is on your mobile business. So I noticed that you said you add service revenue market share in the first quarter this year, which actually was a very good trend. Could you please elaborate more in terms of what exact promotions you have launched or strategy change in the last quarter to help you to gain the market share? This is number one.

您好，非常感謝您給我提問的機會。所以我有三個主要問題。其中之一是您的移動業務。所以我注意到你說今年第一季度增加了服務收入市場份額，這實際上是一個非常好的趨勢。您能否詳細說明上個季度您推出了哪些具體促銷活動或策略變化以幫助您獲得市場份額？這是第一。

Number two is on broadband. So I noticed that mandatory tariff cuts starts from April, but it seems like you also took some voluntary price cut for the broadband business. So just wondering what's the plan for the rest of the year? Are you aiming for further tariff reduction for your broadband business?

第二是寬帶。所以我注意到從4月份開始強制降價，但是寬帶業務好像也有一些自願降價。所以只是想知道今年剩下的時間有什麼計劃？您的寬帶業務是否打算進一步降低資費？

And lastly, is on the MOD. So just I wonder why you guys don't do even more aggressive content acquisition from -- for those very popular content that is being provided by cable. So what prevents you from even more aggressive content acquisition? Thank you.

最後，是關於 MOD 的。所以我想知道為什麼你們不針對那些由有線電視提供的非常受歡迎的內容進行更積極的內容獲取。那麼是什麼阻止您更積極地獲取內容呢？謝謝。

So the first question is regarding the mobile promotions. We have a special package that we offer a good tariff Internet and also combined with the smartphone. And we also do some promotion on the mid to -- mid-term to low end smartphones. So this is also one of the reasons we can get the more market share.

所以第一個問題是關於移動促銷。我們有一個特殊的套餐，我們提供良好的互聯網資費，並且還與智能手機相結合。我們還對中低端智能手機進行一些促銷。所以這也是我們能夠獲得更多市場份額的原因之一。

Okay, regarding the --

好吧，關於——

Sorry, can I follow up one thing? Sorry, can I follow up one thing on the mobile front. So I noticed that you cancelled -- you actually removed the tariff discount you used to offer like last year to the low usage data customers. So do you see that after removing this you see customers do come in as you planned or is there any positive impact from this action?

抱歉，我可以跟進一件事嗎？抱歉，我可以跟進移動方面的一件事嗎？所以我注意到你們取消了——你們實際上取消了去年向低使用數據客戶提供的資費折扣。那麼，您是否發現刪除此操作後，您會看到客戶確實按照您的計劃進入，或者此操作是否有任何積極影響？

Yes, by the end of last year we have the so-called discount on the usage less than 1 gigabit. But we already ended -- this promotion has been ended. So yes, the users now is quite happy with our network. So this had no effect at all.

是的，到去年年底我們就有了所謂的1G以下使用量折扣。但我們已經結束了——這個促銷活動已經結束了。所以，是的，用戶現在對我們的網絡非常滿意。所以這根本沒有任何效果。

Okay.

好的。

The next question is coming from --

下一個問題來自——

For the drop in -- effective from April 1, we have another mandated tariff reduction. So it's not really voluntary price cuts, okay.

對於從 4 月 1 日起生效的下降，我們再次強制降低關稅。所以這並不是真正的自願降價，好吧。

And for the MOD, I think we are aggressive in acquiring content. You know some of the price probably would be too high. So currently we are attractive to have the content provider get on to our network. And we would continue our past effort to try to attract more content providers to come on our platform. Thank you.

對於 MOD 來說，我認為我們在獲取內容方面非常積極。你知道有些價格可能會太高。因此，目前我們很希望內容提供商加入我們的網絡。我們將繼續我們過去的努力，試圖吸引更多的內容提供商進入我們的平台。謝謝。

Okay, thank you.

好的謝謝。

I'll just add on the question two, regarding the broadband tariff actually yes, we proposed the NCC approval of the price cuts. And also we have upgraded the speed of the Internet access. So far we are doing a very big campaign to try to attract even more subscribers. And the rest of this year so far we have no plan. Thank you.

我補充一下第二個問題，關於寬帶資費，實際上是的，我們建議NCC批准降價。我們還升級了互聯網接入的速度。到目前為止，我們正在進行一項非常大規模的活動，試圖吸引更多訂閱者。今年剩下的時間到目前為止我們還沒有計劃。謝謝。

Thank you. So for the broadband, do you have a plan to provide even higher speed broadband? I noticed that your current broadband speed is only up to 100 meg. But now you should be able to provide like up to, I don't know in developed markets some operators provide up to 1 gig. Do you see this will be within your plans?

謝謝。那麼對於寬帶，你們有計劃提供更高速度的寬帶嗎？我注意到你現在的寬帶速度只有100兆。但現在您應該能夠提供最多 1 兆的服務，我不知道在發達市場中某些運營商是否提供最多 1 兆的服務。您認為這會在您的計劃之內嗎？

Yes, we now are promoting the 100 megabits per second by using so-called the fiber to the home or the bundled technology using the VDSL2. We already have a 1 giga trial for thousands of subscribers but so far it's not too many users need this kind high speed. But in the future we plan to introduce the higher speed more than 100 megabit per second. For example, 200 megabit per second. But the technology behind should be fiber to the home. We cannot do it by VDSL2. So yes, we will have some plan in the near future.

是的，我們現在正在通過使用所謂的光纖到戶或使用 VDSL2 的捆綁技術來推廣每秒 100 兆比特的速度。我們已經為數千名用戶進行了 1 GB 試用，但到目前為止，需要這種高速的用戶並不多。但未來我們計劃推出每秒100兆以上的更高速度。例如，每秒 200 兆比特。但背後的技術應該是光纖到戶。我們無法通過VDSL2 做到這一點。所以是的，我們在不久的將來會有一些計劃。

Thank you.

謝謝。

The next question is coming from Chate Bench from Credit Suisse HK. Go ahead please.

下一個問題來自瑞信香港的Chate Bench。請繼續。

Yes, good afternoon, everyone. Thank you for the opportunity to ask a question. I have four questions in total.

是的，大家下午好。感謝您給我提問的機會。我總共有四個問題。

The first one is regarding the broadband, just a further discussion regarding the price cuts in April. The last time that we had the price cut in the middle of the year 2012, it seems like -- the middle of the year 2011 and then beginning of 2012, in fact the impact on revenue is quite material and it takes time to recover. May I ask do you expect that the impact will be pretty similar this time or is there any difference that the price cuts that you are implementing in this round that will not impact the revenue as much?

第一個是關於寬帶的，只是進一步討論四月份的降價。上次我們降價是在2012年年中，看起來是在2011年年中，然後是2012年初，實際上對收入的影響相當大，需要時間來恢復。請問您預計這次的影響會非常相似嗎？或者您在這一輪實施的降價不會對收入產生太大影響，有什麼不同嗎？

The second question is regarding the reduction in broadband again. Is it effective right now the price cut that you intend to implement and after that do you see a pick-up in terms of the subscriber growth or not in terms of broadband subscribers?

第二個問題是關於寬帶再次減少的問題。您打算實施的降價現在是否有效？之後您認為寬帶用戶的增長是否有所回升？

The third and the fourth questions is quite housekeeping. The first one is regarding the cessation of your mobile data tariff discount. What is the impact of this cessation of data discount on your revenue growth for mobile data? If you strip that out what would be the year-on-year growth in mobile data revenue?

第三和第四個問題就很管家了。第一個是關於停止移動數據資費折扣。停止數據折扣對您的移動數據收入增長有何影響？如果剔除這一點，移動數據收入的同比增長是多少？

And the last question is regarding the MOD. I understand that you mentioned the advertising revenue from MOD right now. May I ask what's the percentage of revenue actually that's coming from MOD advertising? Thank you.

最後一個問題是關於MOD的。我了解到您剛才提到了 MOD 的廣告收入。請問 MOD 廣告實際收入的比例是多少？謝謝。

Yes, the price cut we already factored into our guidance. So there would be some impact of course. But however we hope this price cut can also migrate our subscribers into higher speed so that would offset the decline in the price.

是的，我們已經將降價納入我們的指導中。所以當然會有一些影響。但我們希望這次降價也能讓我們的用戶遷移到更高的速度，從而抵消價格的下降。

For your fourth question, the advertisement amount is kind of insignificant. But however, we are glad to see advertisers now they found this is a good channel to put ads. So we would put more effort in this area.

關於你的第四個問題，廣告量是微不足道的。但是，我們很高興看到廣告商現在發現這是一個投放廣告的好渠道。所以我們會在這方面付出更多的努力。

Okay. Is it less than 10% of your MOD revenue currently?

好的。目前還不到你們 MOD 收入的 10% 嗎？

Yes, it's less than 10%.

是的，還不到10%。

Yes, my other two questions are number one, what's the year-on-year growth in mobile data revenue, if we remove the impact from the end of data usage discount?

是的，我的另外兩個問題是第一個問題，如果我們消除數據使用折扣結束的影響，移動數據收入的同比增長是多少？

And the other one is regarding the effect of the cut in broadband tariff, whether after that you see a pick-up in subscriber growth on your fixed broadband services or not?

另外一個是關於寬帶資費下調的影響，您是否會看到固定寬帶服務的用戶增長有所回升？

Okay. Year over year, the increase is 42.2% in which we cover the 20% offer of [one year back]. The year-over-year increase is 33.5%. So if we remove the effect of 20% discount, the year-over-year increase is 33.5%. The overall is 42.2%.

好的。與去年同期相比，增幅為 42.2%，其中我們涵蓋了[一年前]的 20% 報價。同比增長33.5%。因此，如果剔除20%折扣的影響，同比增幅為33.5%。總體為42.2%。

For your question number three, we don't see the pick-up in the subscriber numbers due to cost cutting. But however, we see our subscribers, they're migrating to higher speed and that gives us higher ARPU. Thank you.

對於你的第三個問題，我們沒有看到由於成本削減而導致訂戶數量增加。但是，我們看到我們的訂戶正在轉向更高的速度，這給我們帶來了更高的 ARPU。謝謝。

Thank you very much.

非常感謝。

(Operator Instructions). And now the next question is coming from Joseph Quinn from Macquarie. Go ahead please.

（操作員說明）。現在下一個問題來自麥格理的約瑟夫·奎因。請繼續。

Thank you for the opportunity to ask a few questions. Just on the broadband side, can you give us some expectations what you see on ARPU growth going forward in the next year or so? So obviously taking into account that you're going to have a rate cut coming in second quarter, should we still expect the ARPU to be steady as your users migrate over?

感謝您給我機會問幾個問題。就寬帶而言，您能否給我們一些您對未來一年左右 ARPU 增長的預期？顯然，考慮到第二季度將進行降息，隨著用戶遷移，我們是否還應該期望 ARPU 保持穩定？

On the MOD side, you had it in your slides that you're going to continue to enhance and enrich your local content. Can you talk over how you plan to do that? What's -- are you going to look to produce your own content or how do you plan to work on that side of things?

在 MOD 方面，您在幻燈片中表明您將繼續增強和豐富您的本地內容。您能談談您打算如何做到這一點嗎？你打算如何製作自己的內容，或者你打算如何在這方面開展工作？

And on the IP peering side, can you give us an idea if there is free IP peering, if you're forced to do so, what revenue impact should we expect here? How significant is it?

在 IP 對等互連方面，您能否告訴我們，如果有免費的 IP 對等互連，如果您被迫這樣做，我們應該期望對收入產生什麼影響？它有多重要？

And then lastly, just on your dividend slide, just seeing that obviously you've increased your dividend quite substantially. A, are you looking to increase your overall dividend policy? Or are you looking to maintain more of a stable dividend as it seems a rather stable number year on year? Thank you.

最後，在您的股息幻燈片上，顯然您已經大幅增加了股息。答：您是否打算增加整體股息政策？或者您是否希望維持更穩定的股息，因為股息似乎同比相當穩定？謝謝。

Okay, question one is the broadband, the expectation of the ARPU growth. Because of [x] value, so we expect in the short term that Q2, the ARPU may be a little bit decreased. But after our upgrade plan for our customers, the ARPU we're expecting it to increase gradually. So if the subscriber grows, we expect the revenue can be steadily growth.

好的，第一個問題是寬帶，ARPU增長的預期。由於[x]值，所以我們預計在短期內Q2，ARPU可能會略有下降。但在我們為客戶制定升級計劃後，我們預計 ARPU 會逐漸增加。因此，如果訂戶增長，我們預計收入可以穩步增長。

Okay. And sorry, just in terms of your subscriber growth can I have an idea where you're seeing more subscriber growth. Like your total number of subscribers seems to be moving up fractionally. Can I have an idea where you're seeing most of your subscriber growth? Is this coming from enterprise, more home? Where are you seeing most growth?

好的。抱歉，就您的訂閱者增長而言，我可以知道您在哪些方面看到了更多的訂閱者增長。就像您的訂閱者總數似乎略有上升一樣。我能知道您的訂閱者增長大部分來自哪裡嗎？這是來自企業，還是來自家庭？您在哪裡看到了最大的增長？

Yes, the broadband subscriber number we expect that maybe it grows from enterprise like SME or some like IOT subscriber.

是的，我們預計寬帶用戶數量可能來自中小企業等企業或物聯網用戶等。

Okay.

好的。

Regarding the free peering, the direct impact will be the loss of the TWD2.1m per year income -- TWD250m sorry per year. And we think free peering might also affect the Internet ecosystem in Taiwan. So regarding this issue we still need to watch and assess carefully.

對於免費對等互連，直接影響將是每年損失 210 萬新台幣的收入——每年 2.5 億新台幣。我們認為免費對等互連也可能會影響台灣的互聯網生態系統。所以對於這個問題我們還是需要認真觀察和評估。

You're referring to it might introduce more competition. Sorry, when you mean it might affect the ecosystem, do you mean it might introduce more competition? Is that what you mean?

你指的是它可能會帶來更多的競爭。抱歉，當你的意思是它可能會影響生態系統時，你的意思是它可能會引入更多的競爭嗎？你是這個意思嗎？

The IP free peering is still disputed so far, so we still have to communicate with all the parties involved. So it's still uncertain, but we think it's not a good policy.

IP free對等互連至今仍存在爭議，因此我們仍需與相關各方進行溝通。所以這仍然是不確定的，但我們認為這不是一個好的政策。

Understood.

明白了。

Okay, for the MOD content, we are actively talking to the different content providers. Yes, but we don't disclose the details now.

好的，對於 MOD 內容，我們正在積極與不同的內容提供商進行對話。是的，但我們現在不透露細節。

And for our dividend policy, for dividend distribution we will continue prudently such that our dividend distribution is based on our operational results, expenditure and the cash in hand. Of course any proposal still needs approval by the Board meeting and the AGM. Thank you.

對於我們的股息政策，對於股息分配，我們將繼續審慎地根據我們的經營業績、支出和庫存現金進行股息分配。當然，任何提案還需要董事會會議和年度股東大會的批准。謝謝。

Okay. And sorry, can I just follow up there? In terms of your MOD, I understand and appreciate you can't disclose who you're talking with in that sense. But can you give us some idea in terms of the hurdles or difficulties that maybe you've faced in the past in relation to getting local content?

好的。抱歉，我可以跟進一下嗎？就你的 MOD 而言，我理解並欣賞你不能透露你正在與誰交談。但是您能否給我們一些關於您過去在獲取本地內容方面可能遇到的障礙或困難的想法？

And on the dividend policy, can you maybe give us some insight into the thinking behind the increase in the dividend this year? Obviously this year you have a rather high CapEx and operations are steady but you're going to have LTE licenses as well. I'm just curious I think, the thinking behind the management's decision here. Thanks.

關於股息政策，您能否給我們介紹一下今年增加股息背後的想法？顯然，今年您的資本支出相當高，運營也穩定，但您也將獲得 LTE 許可證。我想我只是好奇管理層決策背後的想​​法。謝謝。

I think first to talk about the dividend, you can see in the past few years our payout ratio was 90%. And this year given the lower earning of last year and our rich cash balance, even after the CapEx for the next few years, the Board they think we can afford a payout ratio of more like 103%. And of course the Board would decide in the future, based on the similar factors like the cash in hand and the CapEx and those kind of factors. So that's what we -- the Board made a decision based on these factors.

我想首先談談股息，你可以看到過去幾年我們的派息率為90%。今年，考慮到去年的盈利較低以及我們豐富的現金餘額，即使在未來幾年的資本支出之後，董事會也認為我們可以承受 103% 左右的派息率。當然，董事會將來會根據手頭現金和資本支出等類似因素做出決定。這就是我們董事會根據這些因素做出的決定。

Okay.

好的。

Regarding the MOD program we still do our best to negotiate with some local content providers. So I think my friends always have very, very positive feedback about the MOD, the quality and the channels. But yes, some local subscribers, they try to have the content from the cable TV. So we're still discussing and negotiate with some local content.

關於MOD計劃我們仍然盡力與一些本地內容提供商進行協商。所以我認為我的朋友們對於 MOD、質量和渠道總是有非常非常積極的反饋。但是，是的，一些本地訂戶，他們嘗試從有線電視獲取內容。所以我們還在和一些本地內容進行討論和協商。

Okay. Thank you.

好的。謝謝。

Next in line is Jeff Yu from Sinopac Securities. Please ask your question.

接下來是永豐金證券 (Sinopac Securities) 的 Jeff Yu。請提出你的問題。

Hello, thank you. I see the (inaudible) smartphone growth, but the average ARPU from the smartphone is declining in comparison with the same period in the last year. Could you tell us what is the trend for the ARPU on the smartphones? Thank you.

你好多謝。我看到（聽不清）智能手機的增長，但智能手機的平均 ARPU 與去年同期相比正在下降。您能告訴我們智能手機上的 ARPU 趨勢是什麼嗎？謝謝。

We -- regarding the smartphone ARPU because we're now moving some effort to the mid end to low end subscribers, so it's the natural trend that maybe the ARPU will be a little bit decreased. So we tried to increase the user base because we now have around 2.8m Internet, mobile Internet subscribers. But we have more than 10m subscribers. So we know the most important thing is to expand our subscriber base. So in the long term, the user ARPU is a little bit decreased but the total effect will be -- increase our revenue.

我們——關於智能手機 ARPU，因為我們現在正在將一些努力轉向中端到低端用戶，所以 ARPU 可能會略有下降是自然趨勢。因此我們試圖增加用戶群，因為我們現在擁有大約 280 萬互聯網、移動互聯網用戶。但我們有超過 1000 萬訂閱者。所以我們知道最重要的是擴大我們的用戶群。因此，從長遠來看，用戶 ARPU 會略有下降，但總體效果將是——增加我們的收入。

Okay. So could we see the amount of the revenue from the smartphone users increasing in the future?

好的。那麼我們未來來自智能手機用戶的收入是否會增加呢？

Yes, yes.

是的是的。

Okay. Sorry, another question. Could you tell us what the MOD subscribers in the first quarter in (inaudible)? Thank you. The MOD subscribers in the first quarter. Thank you.

好的。抱歉，還有一個問題。您能否告訴我們第一季度的 MOD 訂閱者情況如何（聽不清）？謝謝。第一季度 MOD 訂戶數量。謝謝。

Around about -- page nine, slide page 9 -- 1.19m. Yes, it's around 1.2m.

大約 - 第 9 頁，幻燈片第 9 頁 - 1.19m。是的，大約1.2m。

So it's flat with the fourth quarter, the fourth quarter 2012?

那麼它與2012年第四季度持平嗎？

It's almost the same as last year, flat.

和去年幾乎一樣，持平。

Okay. So what's your target this year?

好的。那麼你今年的目標是什麼？

We have -- our aggressive goal is to 1.4m by end of this year. So we will do our best to do some promotion and even to cooperate with the Big TV and other campaign. So the goal is still 1.4m by the end of this year.

我們的雄心勃勃的目標是到今年年底達到 140 萬。所以我們會盡力做一些推廣，甚至配合Big TV等活動。所以今年年底的目標仍然是140萬。

Does that mean we'll see growth in the (inaudible) in the third quarter?

這是否意味著我們將在第三季度看到（聽不清）增長？

Yes, from the second quarter to end of this year is -- we need to do many effort to reach the goal.

是的，從第二季度到今年年底，我們需要付出很多努力才能達到這個目標。

So that will increase the -- more expenses, especially the marketing expense, whether the marketing expense will increase highly or higher than what's expected.

因此，這將增加更多的費用，尤其是營銷費用，無論營銷費用是否會大幅增加或高於預期。

Yes, I think the marketing expense will increase, yes, for this campaign.

是的，我認為這次活動的營銷費用將會增加。

Thank you.

謝謝。

(Operator Instructions). The next question is from [Vicky Lin] from Merrill Lynch. Go ahead please.

（操作員說明）。下一個問題來自美林證券的[Vicky Lin]。請繼續。

Hi, thanks for the opportunity. This is Sydney Zhang from Merrill Lynch. I have three questions. One is would you comment on the current status of competition in the market? As all the companies are now trying to focus on mid to low end customers, would that lead to a price competition?

你好，謝謝你的機會。我是美林證券的張雪梨。我有三個問題。一是您對目前市場競爭狀況有何評論？現在各大公司都在努力瞄準中低端客戶，這是否會導致價格競爭？

My second question is on the -- you have smartphone penetration now reached 43%. What is the actual penetration for people who have real, who have actually signed up the data plans. Because [Forrester] said although smartphone penetration is more than 40%, but the people, the subscriber penetration is below 40%.

我的第二個問題是——智能手機普及率現已達到 43%。對於擁有真實、實際簽署數據計劃的人來說，實際滲透率是多少？因為[Forrester]表示，雖然智能手機普及率超過40%，但對人們來說，用戶普及率卻低於40%。

Third question is if you have the interconnection rate reduction, what is the expected impact to your EBITDA?

第三個問題是，如果互聯率降低，預計會對您的 EBITDA 產生什麼影響？

If you can refer to page number six of our presentation you see that we mentioned about our mobile Internet subscriber number by the end of first quarter this year is about 2.87m subscribers. If we divide it by our 10m subscribers, you can see the percentage for the real because you know this number, these subscribers, they are all subscribing our plan already, okay. So you can see that. You can calculate the percentage.

如果您可以參考我們演示文稿的第六頁，您會看到我們提到今年第一季度末我們的移動互聯網用戶數量約為 287 萬。如果我們將其除以我們的 1000 萬訂閱者，您可以看到真實的百分比，因為您知道這個數字，這些訂閱者，他們都已經訂閱了我們的計劃，好吧。所以你可以看到這一點。您可以計算百分比。

Okay, great.

好的，太好了。

Yes, the interconnection rate cut will have impact on our EBITDA. However, all of the impact has been factored into this year guidance and till now we still maintain our guidance for this year. Thank you.

是的，互聯費率下調將對我們的 EBITDA 產生影響。然而，所有影響都已計入今年的指導，到目前為止，我們仍然維持今年的指導。謝謝。

(Operator Instructions).

（操作員說明）。

I have answered the question regarding the actual number of people that have signed up for the data plan. The subscriber that procure the smartphone, around 80% to 90% overall, 80% to 90% of the subscriber who buy a smartphone subscribe to our data package.

我已經回答了有關註冊數據計劃的實際人數的問題。購買智能手機的用戶中，大約有 80% 到 90% 左右，購買智能手機的用戶中有 80% 到 90% 訂閱了我們的數據套餐。

Mr. Zhang, you're still on the line. Would you like to ask more questions, sir?

張先生，您還在電話裡嗎？先生，您想問更多問題嗎？

Just comment on the competition please.

請對比賽發表評論。

We have see a lot of mid-end to low-end from the vendors like Samsung and the other models. So we see we already see a lot of these kind of models. Especially we will migrate our 2G subscriber to 3G in the coming half year or later. So we think it will be a trend that all the subscribers who will not subscribe our package, data package will be our potential subscribers for data. So the handset is very important because the iPhone, the HTC phone usually is quite relatively high end. So the companion package will be high tariff. But for the most of the people it may be not required, not necessary. So we have a data package that have less than TWD1,000. We will give them a good handset in the very affordable price. So after our subsidy, it will be easy for the entry level customer to use.

我們看到三星和其他型號的供應商提供了很多中低端產品。所以我們看到我們已經看到了很多這樣的模型。特別是我們將在未來半年或更晚的時間內將我們的2G用戶遷移到3G。所以我們認為，所有不會訂閱我們的套餐、數據套餐的訂閱者都將成為我們的潛在數據訂閱者，這將是一個趨勢。所以手機非常重要，因為iPhone、HTC手機通常都是比較高端的。所以配套套餐的資費會很高。但對於大多數人來說，可能不需要，沒有必要。所以我們有一個不到TWD1,000的數據包。我們將以非常實惠的價格為他們提供一款好手機。所以有了我們的補貼之後，入門級的客戶就可以輕鬆使用了。

Okay, thank you.

好的謝謝。

And the next question is coming from Lucy Liu, JP Morgan. Go ahead and ask your question please.

下一個問題來自摩根大通的 Lucy Liu。請繼續問你的問題。

Hi, thank you. I have two more follow-up questions. One is on your 4G. So I understand that you have your 2G license extended and it's supposed to be technology neutral. So just wonder what's the thought of bidding for 4G licenses, 4G spectrums. Can you actually use the 2G spectrum currently in the requirement 4G or you need to bid for new. That's number one.

嗨，謝謝你。我還有兩個後續問題。其中一個在您的 4G 上。據我所知，您已經延長了 2G 許可證，並且它應該是技術中立的。所以想知道競標4G牌照、4G頻譜是怎麼想的。您實際上可以使用當前要求的 4G 頻譜中的 2G 頻譜嗎？或者您需要競標新頻譜。這是第一。

Number two on the fixed line last mile, there was previous news saying that government will urge you to open up a on the last mile, the local loop. So are there any updates on that? Thank you.

第二個固網最後一公里，之前有消息說政府會督促大家在最後一公里上開闢一個本地環路。那麼這方面有什麼更新嗎？謝謝。

Yes, the question one is regarding the 4G auction. By the end of this year the three frequency bands, totally 135 megahertz bandwidth, including the 700 megahertz band and the 900 and the 1800. So according to the regulator's policy this will be technology neutral. So Chunghwa Telecom now have a 2G spectrum in 900 and 1800. So if we can bid for LTE, we can deploy the 4G on the spectrum. But because the 900 mega band now have no LTE equipment, so we are focusing maybe 1800 will be more easy to deploy and also this iPhone 5 already have LTE ready. So to answer your question, yes, we can deploy LTE on the existing 900 and 1800.

是的，問題一是關於4G拍賣的。到今年年底這三個頻段總共135兆赫茲帶寬，包括700兆赫茲頻段以及900和1800兆赫茲頻段。因此根據監管機構的政策，這將是技術中立的。所以中華電信現在有900和1800的2G頻譜。所以如果我們能夠競標LTE，我們就可以在該頻譜上部署4G。但由於 900 mega 頻段現在沒有 LTE 設備，所以我們關注的是 1800 頻段可能更容易部署，而且這款 iPhone 5 已經準備好了 LTE。所以回答你的問題，是的，我們可以在現有的 900 和 1800 上部署 LTE。

Regarding the 700 frequency band it is a new spectrum. It's the so-called APT, Asia Pacific Telecommunications band. So far we cannot find the equipment vendors. So we will do our best to have a good decision to choose the best frequency spectrum for Chunghwa Telecom.

對於700頻段來說，它是一個新頻譜。這就是所謂的 APT，亞太電信頻段。目前我們還找不到設備供應商。所以我們會盡力做出好的決定，為中華電信選擇最好的頻譜。

We can continue using the 2G for GSM in -- by end of year 2016, 2017 because we already extend our license for 2G until 2017. So it's very interesting. Maybe you can do some study that how Taiwan's regulators to ask the operator to launch the service as soon as possible, even the spectrum will be available early next year. Thank you.

我們可以在 2016 年年底、2017 年繼續使用 GSM 的 2G，因為我們已經將 2G 許可證延長到 2017 年。所以這非常有趣。也許你可以研究一下台灣監管機構如何要求運營商盡快推出該服務，甚至明年初提供頻譜。謝謝。

Thanks. So you're saying that even before the license is officially given, you can already launch the 4G service by using the current existing spectrum you have right? But do you have a plan to do that?

謝謝。那麼你的意思是，在正式發放牌照之前，你就可以利用你現有的頻譜推出4G服務了，對嗎？但你有計劃這樣做嗎？

That can depend on the real frequency you get, you are granted because we still have the 2G subscriber around more than 3m. So we need to clear up for example, 1800 megahertz for the LTE deployment (inaudible). Yes, we can do that if we can get the spectrum the same.

這可能取決於你獲得的實際頻率，這是理所當然的，因為我們仍然有超過 300 萬左右的 2G 用戶。因此，我們需要清理 1800 兆赫的 LTE 部署（聽不清）。是的，如果我們能夠獲得相同的頻譜，我們就可以做到這一點。

Thank you. And how about the fixed line last mile local loop?

謝謝。固定線路最後一英里本地環路怎麼樣？

Yes, the government still have a -- the NCC still have some proposal to open up and we will see what will happen. Thank you.

是的，政府仍然有——NCC 仍然有一些提案需要公開，我們將看看會發生什麼。謝謝。

Okay, thank you very much.

好的，非常感謝。

Okay, we're running out of time so we are opening for the last question. And the last question is from Jeff Yu from Sinopac Securities. Go ahead and please ask your question, sir.

好的，我們的時間不多了，所以我們開始回答最後一個問題。最後一個問題是來自永豐金證券的余杰夫。先生，請繼續問你的問題。

Okay, thank you. Could you tell us which sector of the revenue will have better performance? Thank you. In the second quarter. Because we have fixed line, mobile and Internet, could you inform us which sector will have a better performance in the second quarter? Thank you.

好的謝謝。您能告訴我們哪個部門的收入會有更好的表現嗎？謝謝。在第二季度。因為我們有固網、移動、互聯網，請問二季度哪個行業的表現會比較好？謝謝。

I think that you can study the trend and the trend probably will continue. Thank you.

我認為你可以研究這一趨勢，而且這種趨勢可能會持續下去。謝謝。

Thank you.

謝謝。

Okay, we thank you very much for your questions. Now I will turn it back to Chairman Lee for closing comments. Chairman Lee, go ahead please.

好的，我們非常感謝您的提問。現在我將把它轉回給李主席以供結束評論。李主席，請繼續。

Yes, thank you all your participation and good day and good evening, everybody. Thank you.

是的，謝謝大家的參與，大家早上好，晚上好。謝謝。

Thank you, Chairman Lee, and thank you all 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. Good night and goodbye.

謝謝李董事長，也謝謝大家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。晚安，再見。