Taiwan Mobile (TWM), one of the three largest mobile telecom carriers in Taiwan, will focus its 2011 business operation on increasing revenues from value-added services through strengthening contract-bundled sales of smartphones, according to the company.
TWM saw its sales volume of smartphones hike from 103,000 units in 2009 to 449,000 units in 2010, with the corresponding ARPU (average monthly revenues per user) rising from NT$756 to NT$1,635 (US$50), the company indicated. TWM expects to sell 700,000 smartphones bundled with contracts, the company pointed out.
In line with promoting smartphones, TWM will expand its 3G network to meet increased demand, the company noted. TWM has set aside a budget of NT$6.8 billion for expanding 3G Internet-access capacity in 2011-2014, with initial plans to add 1,000 3G base stations in 2011, the company pointed out.
TWM has also set aside an overall capex budget of NT$6.4 billion for 2011, consisting of NT$4.6 billion for mobile communication operations, NT$1.2 billion for fixed-line communication operations including undersea cables and NT$600 million for cable TV business operated by its subsidiary TFN Media, the company indicated. TFN had 566,283 subscribers, including 137,299 using cable Internet access as of the end of 2010, TWM added.
| TWM: Financial report and forecast, 4Q10 (NT$b) |
| Item | 4Q10 | 2010 | 2011(f) |
| Consolidated revenues | 17.900 | 70.146 | 73.96 |
| EBITDA* margin | 35.56% | 39.15% | 34.85% |
| Net operating profit | 4.092 | 18.308 | 16.29 |
| Net profit | 3.187 | 13.882 | 13.08 |
| Net earnings per share (NT$) | 1.06 | 4.62 | 4.57 |
* Earnings before interest, tax, depreciation, amortization
Source: Company, compiled by Digitimes, January 2011