Chunghwa Telecom's Revenue Growth and Strategic Position in Taiwan's Telecommunications Sector

In the maturing telecommunications sector, Chunghwa Telecom (CHT) has demonstrated resilience and strategic adaptability, positioning itself as a key player in Taiwan's $10.94 billion telecom marketTaiwan Telecom Market Size & Share Analysis^[1]. Despite the sector's challenges—intensifying competition, regulatory constraints, and margin pressures—the company has navigated these headwinds through diversified revenue streams, technological innovation, and operational efficiency. This analysis evaluates CHT's financial performance, strategic investments, and competitive positioning to assess its sustainability and long-term value creation potential.

Financial Performance: Steady Growth Amid Margin Pressures

CHT's 2023 full-year revenue of NT$223.20 billion marked a 3.0% year-over-year increase, with net income attributable to stockholders rising 1.2% to NT$36.92 billionTaiwan Telecom Market Size & Share Analysis^[1]. By Q3 2025, the company had achieved a full-year 2024 revenue of NT$230.03 billion, a 3.1% increase, and an EPS of NT$4.80—the highest in seven yearsChunghwa Telecom Reports Un-Audited Consolidated Operating Results for the Fourth Quarter and Full Year of 2024^[2]. This growth was driven by its Enterprise Business Group (EBG), which saw a 12.4% revenue increase in Q3 2025, fueled by a 37% surge in ICT services revenueChunghwa Telecom Earnings Q3 2025^[3].

The Consumer Business Group (CBG) also contributed, with mobile service revenue growing 3.0% in Q4 2024 due to 5G migration and postpaid subscriber expansionChunghwa Telecom Reports Un-Audited Consolidated Operating Results for the Fourth Quarter and Full Year of 2024^[2]. Fixed broadband revenue increased 2.8% in the same period, reflecting successful speed-upgrade strategiesChunghwa Telecom Reports Un-Audited Consolidated Operating Results for the Fourth Quarter and Full Year of 2024^[2]. However, the International Business Group (IBG) faced headwinds, with a 16.8% revenue decline in Q2 2025 due to reduced demand for international voice servicesChunghwa Telecom Earnings Q3 2025^[3].

CHT's operating margin and EBITDA margin improved in Q1 2025, with EBITDA hitting NT$22.53 billion and a 40.37% marginChunghwa Telecom Earnings Q3 2025^[3]. This operational efficiency underscores the company's ability to manage costs while investing in high-growth areas.

Strategic Positioning: Innovation and Regulatory Navigation

Taiwan's telecom market, projected to grow at a 3.46% CAGR to $13.91 billion by 2033Taiwan Telecom Market Size & Share Analysis^[1], is dominated by CHT, Taiwan Mobile, and Far EasTone. CHT's leadership in 5G infrastructure and fiber-optic broadband has been critical to its competitive edge. For instance, the company's 5G market share in Taiwan reached 38.7% in Q2 2025Chunghwa Telecom Earnings Q3 2025^[3], supported by robust network quality and subscriber growth.

Regulatory dynamics, overseen by the National Communications Commission (NCC), have also shaped CHT's strategy. The 2020 Telecommunications Management Act streamlined service provider registration but imposed strict foreign ownership limits (49% direct, 60% combined)Chunghwa Telecom Reports Un-Audited Consolidated Operating Results for the Fourth Quarter and Full Year of 2024^[2]. CHT has navigated these constraints by focusing on domestic partnerships and vertical integration, such as its collaborations with Ericsson and Fujitsu to advance 5G-Advanced technologiesTaiwan Telecom Market Size & Share Analysis^[1].

Long-Term Value Creation: Diversification and Digital Transformation

CHT's long-term value creation hinges on its ability to transition from traditional telecom services to high-margin ICT solutions. The EBG's 24.1% YoY growth in ICT revenue in Q4 2024—driven by cloud, cybersecurity, and AIoT services—highlights this pivotChunghwa Telecom Reports Un-Audited Consolidated Operating Results for the Fourth Quarter and Full Year of 2024^[2]. For example, IDC and cloud services grew by 62% and 46%, respectivelyChunghwa Telecom Reports Un-Audited Consolidated Operating Results for the Fourth Quarter and Full Year of 2024^[2], indicating strong demand for enterprise digital transformation.

However, CHT faces challenges in sustaining this momentum. The IBG's 2.3% revenue decline in Q4 2024 and 16.8% drop in Q2 2025Chunghwa Telecom Earnings Q3 2025^[3] signal vulnerabilities in international markets. Additionally, while the company's R&D and sustainability initiatives are not explicitly detailed in recent reportsThe Public Safety LTE & 5G Market: 2023 – 2030^[4], its investments in energy-saving AI-driven solutions and 5G-Advanced partnerships suggest a commitment to innovation and ESG alignmentTaiwan Telecom Market Size & Share Analysis^[1].

Conclusion: A Resilient Player in a Maturing Market

CHT's financial performance and strategic investments position it as a resilient player in Taiwan's maturing telecom sector. Its focus on 5G, fiber-optic expansion, and enterprise ICT services aligns with global trends toward digital transformation. While regulatory constraints and international market volatility pose risks, CHT's operational efficiency and market leadership provide a strong foundation for long-term value creation. Investors should monitor its ability to sustain ICT growth and navigate competitive pressures from rivals like Taiwan Mobile, which has leveraged 5G NR Carrier Aggregation to offer 100MHz bandwidthTaiwan Telecom Market Size & Share Analysis^[1].