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CHT to spent NT$46 billion for fiber-optic network equipment in 2008-2012

Taiwan-based Chunghwa Telecom (CHT) plans to invest NT$46 billion (US$1.5 billion) to expand its fiber-optic communications networks from 2008-2012, with NT$40 billion to be allocated for the purchase of networking equipment from Taiwan-based makers, CHT said at a seminar.

The investment in the fiber-optic networks is part of CHT's next-generation network (NGN) project, which requires a total capital outlay of NT$120 billion in a five-year period ending 2012, the company said.

The purchase of the fiber-optic network equipment during the five-year project will include equipment such as VDSL2, MSAN (multi-service access network), EPON (Ethernet passive optical network), home gateways, CPE (customer premises equipment) and L2/L3 Ethernet switches, among others, CHT noted.

For 2008, the planned purchase of fiber-optic network equipment is expected to top NT$9 billion, including NT$2 billion for VDSL2 and EPON equipment, CHT detailed.

Since CHT has stepped up its cooperation with Taiwan-based network equipment makers in recent years, the ratio of network equipment purchased from local makers will remain at a high level this year, according to market sources.

The ratio of the purchase of network equipment from local makers to CHT's total procurement stood at 58.8% in 2004 before climbing to 65% in 2006 and 65.7% in 2007, CHT data showed.

Taiwan's leading network-equipment makers, including D-Link and Zyxel Communications, are vying for the orders from CHT, said market sources.

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