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CHT to see EPS drop in 3Q10 as rivals TWM and FET head higher

Chunghwa Telecom (CHT) expects its EPS to drop from NT$1.34 in the second quarter to NT$1.22 in the third, while Taiwan Mobile (TWM) projects an increase from NT$1.13 to NT$1.19 and Far EasTone Telecommunications (FET) from NT$0.60 to NT$0.75 in the same period.

The carriers' upcoming profitability has garnered differing opinions among industry pundits as Apple's latest iPhone 4 and a slew of high price tag smartphones, which all require heavy subsidization from the service providers, are scheduled to hit the market in the coming months.

Though the smartphones are an excellent revenue source, and proven to increase ARPU (average revenue per user), the subsidies needed to promote the devices have hampered the carriers' operating costs.

The three carriers expect the iPhone 4 to make its Taiwan debut at the end of the third quarter, and will be sold via multiple service providers, sources from the companies said.

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