Chunghwa Telecom Loses Bid for WiMax License

TAIPEI, Taiwan, July 26 /Xinhua-PRNewswire-FirstCall/ -- Chunghwa Telecom Co., Ltd. ("CHT"; TAIEX: 2412; NYSE: CHT) today announced that it did not win the second stage of the price bid for a Wireless Broadband Access license in Taiwan. The Company had successfully passed the first stage of the proposed business plan audit earlier this month, but had submitted a lower price offering.

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The Company’s bidding price is a proposed concession fee, calculated as a ratio of the expected WiMax business revenue. Chunghwa’s offering price in the bid was based on the Company’s experience running the mobile business and its appraisal of the value of future WiMax service operations.

Chunghwa regrets the result of the bidding; however, the Company will take part in the nationwide license issuing process in two years. In the meantime, the Company will leverage its current products, such as ADSL, FTTx and 3G/HSDPA, to provide high-quality broadband access services for its customers. The broadband access service offerings will not be affected due to the loss of the WiMax bid.

About Chunghwa Telecom

Chunghwa Telecom is the leading telecom service provider in Taiwan. Chunghwa Telecom provides fixed line services, mobile services and Internet and data services to residential and business customers in Taiwan.

For inquiries:

Fu-fu Shen

Investor Relations

Tel: +886-2-2344-5488

Email: chtir@cht.com.tw