Chunghwa Telecom Co., Ltd. (CHT): ANSOFF MATRIX [Dec-2025 Updated]

You're looking at Chunghwa Telecom Co., Ltd.'s strategy and wondering where the real growth engine is firing up, right? Well, after a decade analyzing these giants, I can tell you this: the near-term play is a clear pivot. While they're still focused on market penetration-like driving 5G migration where they command a 40.3% mobile share-the big money is going into future tech. See how they've earmarked NT$32.36 billion in 2025 capital expenditure specifically for AI-ready Data Centers and private 5G networks? Let's walk through their four Ansoff paths, from expanding their International Business Group into places like Frankfurt to developing generative AI avatars, so you can see the precise actions driving their high-margin ICT push.

Chunghwa Telecom Co., Ltd. (CHT) - Ansoff Matrix: Market Penetration

Drive 5G migration to increase mobile service revenue, which grew 3.1% year-over-year in Q1 2025. This growth was explicitly linked to 5G migration and increasing postpaid subscribers, alongside increased OTT revenue. The total mobile service revenue for Q1 2025 was NT$ 16.95 billion, even as the total mobile subscriber count slightly decreased by 0.9% year-over-year to 13.11 million at the end of March 2025.

Promote fixed broadband cross-tier upgrades, especially to 1 Gbps, to boost ARPU (Average Revenue Per User). The success of the symmetric speed upgrade campaign and the offering of 1Gbps service led to sustained double-digit growth in subscribers with speeds of 300Mbps and above as of August 2025. This strategy is working, as the fixed broadband ARPU rose by 2.9% to NT$808 in August 2025, which resulted in a 3.1% year-over-year increase in fixed broadband service revenue for that month. To give you context on mobile ARPU, the mobile post-paid ARPU excluding IoT SIMs was NT$553 in Q1 2025, grew to NT$556 in Q2 2025, and reached NT$562 in Q3 2025.

Increase consumer cybersecurity subscriptions, building on the 22% subscriber growth seen in 2024. Consumer cybersecurity enjoyed a 22% subscriber increase year over year as of the end of 2024, with the subscriber number exceeding 1 million. This momentum is expected to continue into 2025.

Bundle OTT video content, like exclusive dramas and sports, to reduce customer churn in the saturated Taiwan market. The increase in OTT revenue, driven by sports content and exclusive dramas, was cited as a factor in the 3.1% YoY mobile service revenue increase in Q1 2025. For the full year 2024, MOD and Hami Video revenue saw a 4% year-over-year increase, partly due to content like the WBSC Premier12 broadcast.

Leverage the leading 40.3% mobile revenue share to upsell value-added services to the existing subscriber base. Chunghwa Telecom maintained its leading position, with a mobile revenue share of 40.4% for the full year 2024. As of Q1 2025, the company expanded its market share to 40.5% and held a subscriber share of 39.1%. This revenue share consistently surpasses the subscriber share, which highlights strong operational efficiency.

Here are some key figures related to this market penetration focus:

The focus on existing customers means maximizing the value from the current base through service enhancements. You can see the success in the following areas:

• Subscribers to multiple-play packages increased by 57% year-over-year (as of Q4 2024).
• Total mobile subscribers were 13.11 million as of March 31, 2025.
• The number of HiNet broadband subscribers was 3.75 million at the end of March 2025.
• The 4G to 5G renewal uplifted ARPU by 42.7% in 2024.
• Total broadband subscribers were 4.43 million as of December 31, 2024.

Chunghwa Telecom Co., Ltd. (CHT) - Ansoff Matrix: Market Development

You're looking at how Chunghwa Telecom Co., Ltd. (CHT) pushes its existing services into new geographic territories, which is the core of Market Development in the Ansoff Matrix. This strategy is clearly about expanding the footprint of the International Business Group into new regions across Asia and Europe.

The push into new territories is backed by concrete financial results, even with recent fluctuations. For instance, the International Business Group revenue saw a 0.9% increase in the first quarter of 2025, reaching NT$ 2.44 billion. This growth area is a key management focus for 2025, specifically targeting emerging markets and new technologies.

A major action here is targeting Taiwanese enterprises that have established operations abroad. The recent launch of the Frankfurt, Germany, subsidiary is a direct play to support these companies, with analysts noting the move aligns with Taiwan Semiconductor Manufacturing Co. (TSMC)'s establishment of an advanced fab in Germany. The belief is clear: Wherever Taiwanese businesses go, Chunghwa Telecom Co., Ltd. (CHT) will be there for them. This European foothold completes a network spanning Europe, America, and Asia. Also, Chunghwa Telecom Co., Ltd. (CHT) recently expanded its US presence by launching a new office in Texas and expanding its Arizona office to support business development.

The export of integrated smart city solutions is another critical market development vector, replicating success seen in established deployments. Here's a look at the technology being exported:

The smart city solutions involve advanced components designed for new urban environments. For example, the Smart Pole solution demonstrated in Indonesia includes:

• Intelligent surveillance cameras capable of vehicle and face detection
• LED lights controllable remotely
• Integrated electric vehicle charging (EV Charger)

Strengthening the international data center (IDC) business is also part of this push, as evidenced by the 0.9% Q1 2025 revenue increase for the International Group which includes IDC growth. This aligns with the broader 2025 management philosophy to concentrate on themes like 'AI Applications' and 'Next-Generation Networks'.

The International Business Group's current operational locations include offices in:

• Tokyo, Beijing, Hong Kong, Hanoi, Bangkok, Singapore
• San Jose, Diamond Bar (L.A.), Phoenix (Arizona), Grapevine (Texas) in the USA
• Frankfurt, Germany (New European Subsidiary)

Finance: review Q2 2025 International Group revenue of NT$ 2.20 billion against Q1 2025 revenue of NT$ 2.44 billion by end of week.

Chunghwa Telecom Co., Ltd. (CHT) - Ansoff Matrix: Product Development

You're looking at how Chunghwa Telecom Co., Ltd. (CHT) is building out its next generation of offerings, moving beyond just connectivity to embedding intelligence and resilience across its portfolio. This is all about new products for existing and new markets.

The financial commitment here is substantial. For 2025, Chunghwa Telecom Co., Ltd. (CHT) plans to invest NT$32.36 billion in capital expenditure. This figure represents an increase of NT$3.37 billion compared to the prior year, showing a clear acceleration in spending.

This investment is specifically targeted at expanding AI-ready Data Centers (AIDC), new submarine cable construction, and the continued deployment of 5G to maintain a competitive edge and enhance network resilience. The Enterprise Business Group (EBG) already showed strong momentum, delivering 12.4% revenue growth, largely fueled by a 37% surge in its ICT business, which includes AI and cloud solutions.

Here's a look at the infrastructure underpinning this product push:

The focus on enterprise networks is clear. Chunghwa Telecom Co., Ltd. (CHT) is launching 5G enterprise private networks aimed at industrial customers. The strategic intent is to support smart manufacturing and logistics operations by leveraging the high-speed, low-latency capabilities of 5G AI technologies.

On the generative AI front, Chunghwa Telecom Co., Ltd. (CHT) is committed to the comprehensive deepening of Generative AI application, moving beyond IT infrastructure delivery to become a Co-creator driving AI applications across industries. While the development of hyper-realistic AI human avatars for customer service is part of the broader AI acceleration, specific commercialization figures aren't yet public. However, the company is integrating Generative AI with digital twins for network management, which has already boosted network capacity by nearly 14%.

Chunghwa Telecom Co., Ltd. (CHT) is introducing AI-powered solutions for smart city infrastructure, such as the Intelligent Traffic Management System in Taiwan. This aligns with the company's vision of accelerating digital transformation across different industries.

Network resilience is being enhanced through the rollout of Multi-Orbit Satellite Communication Services for enterprise customers. Chunghwa Telecom Co., Ltd. (CHT) is building a resilient "Sea, Land and Sky" network architecture. This involves integrating multiple orbits:

• LEO (Low Earth Orbit) services via partnership with Eutelsat OneWeb; Chunghwa Telecom Co., Ltd. (CHT) is the first in Taiwan with a commercial license for this technology.
• MEO (Medium Earth Orbit) services through SES's O3b network; Chunghwa Telecom Co., Ltd. (CHT) received formal approval for commercial operations on November 3, 2025.
• GEO (Geostationary Orbit) services, including its proprietary ST-2 satellite.
• A dedicated MicroGEO satellite from Astranis is scheduled for launch by the end of this year, with full bandwidth availability as early as next year.

This multi-orbit approach is designed to deliver reliable and resilient communications, serving as a critical real-time backup against natural disasters and submarine cable disruptions for government and enterprises. The International Business Group, while currently at NT$2.20 billion in revenue (down 16.8%), is positioned to benefit from these global connectivity enhancements.

Finance: draft 13-week cash view by Friday.

Chunghwa Telecom Co., Ltd. (CHT) - Ansoff Matrix: Diversification

You're looking at Chunghwa Telecom Co., Ltd. (CHT)'s push into new markets and services, which is the definition of diversification on the Ansoff Matrix. This isn't just about better mobile coverage; it's about building new revenue streams from content, space, and intelligence.

Invest in Taiwanese original films and dramas through the Cultural and Creative Fund to build content IP

Chunghwa Telecom Co., Ltd. (CHT) is actively building content Intellectual Property (IP) through dedicated funds. In November 2025, Chunghwa Telecom unveiled an NT$1 billion (US$32 million) cultural fund specifically to invest in Taiwan's film and TV projects, aiming for global competitiveness. Chunghwa Telecom will hold more than 50% of this fund, with the Taiwan Creative Content Agency (TAICCA) holding 30%. The fund is expected to launch next year, with 30-40% of its capital planned for deployment in the first year. This follows earlier commitments, such as an injection of NT$3 billion (US$92.94 million) into domestic television dramas in late 2023. The company's subsidiary, Chunghwa Digital Cultural Management Consulting Co, manages these investments in films, music, and immersive experiences like VR. Past content investments have seen success; drama series like "The Outlaw Doctor" and "Black Tide Island," along with variety shows "Atom Boyz 2" and "Scool," collectively won ten awards at the 60th Golden Bell Awards. On the film side, "Marching Boys" received two nominations at this year's Golden Horse Awards. Chunghwa Telecom operates the Hami Video streaming platform, which ranks first among domestic OTT platforms in both viewing frequency and paid subscriptions, according to the National Communications Commission (NCC) survey.

Develop and market Taiwan-made satellite user terminals globally for maritime, aviation, and automotive applications

To strengthen network resilience and tap into the global satellite market, Chunghwa Telecom Co., Ltd. (CHT) is evaluating investments to help form a domestic satellite industry chain focused on user terminals (UTs). Chair Chien Chih-cheng stated the company has already approached five to eight local manufacturers using different technologies. The goal is to supply terminals for maritime, aviation, automotive, residential, and enterprise applications. Once trial services prove successful, these domestically produced terminals could be marketed worldwide. This effort complements their infrastructure moves, including a strategic deal with US-based Astranis for a third-generation MicroGEO satellite, slated to launch by the end of 2025, with commercial service potentially starting as early as the third quarter of 2026. Company President Lin Jung-tzu noted that satellite communications will only reach scale if user terminals become affordable, hoping Taiwan's manufacturing base can drive down terminal costs.

Enter the smart camera market to capture image-based care and security business opportunities outside core telecom

Chunghwa Telecom Co., Ltd. (CHT) is explicitly entering the smart camera market as part of its broader push into image-based care and security outside its traditional telecom base. While specific revenue for the smart camera segment alone isn't isolated in the latest guidance, the company's overall focus on AI and IoT provides context for this diversification. For instance, in May 2025, AIoT revenue surged by over 60% year-over-year, driven by projects like smart energy initiatives. The Enterprise Business Group revenue in Q3 2025 increased by 7.4% to NT$18.91 billion, indicating strong growth in enterprise solutions where smart security fits. Furthermore, Chunghwa Telecom's Smart City Management Platform integrates AI-powered image recognition technology to enable real-time disaster assessment by monitoring IoT sensors, including surveillance cameras.

Act as an AI 'Enabler' by delivering computing power services to accelerate digital transformation across industries

Chunghwa Telecom Co., Ltd. (CHT) has embraced the vision of "Chunghwa AI Ignites the Future," adopting the pivotal role of an "Enabler" by delivering computing power services. This is directly supported by significant capital expenditure increases, with Property, Plant and Equipment acquisition in 2025 expected to increase by NT$3.37 billion to NT$32.36 billion, largely owing to the expansion of AI internet data centers (IDCs). The company's subsidiary, Chief Telecom, operates the LY2 data center, which is expected to be the only high-specification AI IDC in all of Taiwan until at least 2026. The overall colocation market in Taiwan is projected to grow from US$175 million in 2025 to US$360 million by 2030. In Q3 2025, the ICT revenue set a new third-quarter record, the highest since 2021. The 2025 guidance projects total revenue to increase by 1.2%~1.6% to NT$232.74~NT$233.74 billion, with emerging businesses empowered by AI being a key driver.

Partner with startups via the 5G Accelerator program to co-create AI-driven services in new application areas

Chunghwa Telecom Co., Ltd. (CHT) acts as a "Co-creator" by partnering with startups to drive AI applications across industries, utilizing its 5G Accelerator Selection within the CHT Digital Innovative Application Series Competition. This program follows a "big supporting small" concept, offering startups crucial support like business expansion, technical support, proof of concept field access, capital matching, marketing exposure, and telecommunications resources. The competition explicitly combines 5G with AI to encourage innovative solutions for practical industry needs, including smart culture, manufacturing, healthcare, environment, living, transportation, and finance. The company also launched a new subsidiary, InventAI, in October 2025, spun off from its research division, dedicated to monetizing AI innovations.

Here is a snapshot of some of the financial and operational metrics supporting these diversification efforts:

The Enterprise Business Group revenue in Q3 2025 reached NT$18.91 billion, showing growth of 7.4% year-over-year, which underpins the commercial viability of these new enterprise-focused services.