One of the great philosophical questions is this: Would you rather have a big piece of a small pie or a small piece of a bigger pie? Chunghwa Telecom
In its fourth-quarter and full-year 2007 earnings announcement this week, the company said it holds a commanding lead in its markets -- a 36% share of the wireless market, a 68% share of the Internet service market, and an 87% share of the broadband access market. But growth is another story -- Chunghwa had to work hard to manage 7.8% top-line growth for the year. And that dominant position is proving harder to hold.
Because only about 23 million people live in Taiwan, telecom services are all about efficiency and up-selling services. This is quite different from mainland China, where operators like China Mobile
Seeking new growth, the company teamed up with Nortel
With more than $2.5 billion on the balance sheet and no debt, Chunghwa certainly can afford to go shopping a little. It's hoped it can find a nice growth play to help prop up its domestic operations.
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Fool contributor Dave Mock once ate food with a name that sounded a lot like Chunghwa. He owns no shares of companies mentioned here and is the author of The Qualcomm Equation. Sprint Nextel is an Inside Value recommendation. The Fool's disclosure policy was born in the year of the rat.