Younger, faster rivals threaten Chunghwa

As Taiwan's incumbent national telco, Chunghwa Telecom is often seen as slow, unwieldy and out of touch - and under increasing threat from faster, younger rivals such as FarEastone Communications, Taiwan Mobile and wireless start-up Vibo Telecom. Chunghwa has struggled to maintain its market leader position in recent months, and saw its 2006 Q1 net profit sag by 14 per cent compared to one year earlier. Despite leading adspend among telcos, Chunghwa's branding has failed to achieve cut-through. Some observers attribute this to Government regulations requiring the company to review its ad agencies every year. The most recent review saw Leo Burnett scoop the US$15 million creative assignment from BBDO, while media remains in the balance at presstime.

by | 06/29/2006

As Taiwan's incumbent national telco, Chunghwa Telecom is often seen as slow, unwieldy and out of touch â€” and under increasing threat from faster, younger rivals such as FarEastone Communications, Taiwan Mobile and wireless start-up Vibo Telecom.

Chunghwa has struggled to maintain its market leader position in recent months, and saw its 2006 Q1 net profit sag by 14 per cent compared to one year earlier.

Despite leading adspend among telcos, Chunghwa's branding has failed to achieve cut-through. Some observers attribute this to Government regulations requiring the company to review its ad agencies every year. The most recent review saw Leo Burnett scoop the US$15 million creative assignment from BBDO, while media remains in the balance at presstime.