Chunghwa Telecom to Expand Collaboration with

Groundhog Technologies

2005.10.15

TAIPEI, Taiwan ¡V Chunghwa Telecom [NYSE: CHT], the largest mobile operator in Taiwan, says today that it will soon complete the fifth phase of its network expansion utilizing OptiMo GSM/GPRS^TM developed by Groundhog Technologies Inc.. Since 2 years ago, Chunghwa Telecom have been successfully optimizing its network infrastructure with OptiMo GSM/GPRS^TM, assuring subscriber satisfaction in North, Central, and South metropolitan areas in Taiwan. The two companies have also begun talks on system expansion.

According to later report confirmed by both sides, Groundhog Technologies¡¦ OptiMo GSM/GPRS^TM, as part of the Mobility-Based Optimization^TM solution set, has achieved significant performance improvement for Chunghwa Telecom. Chunghwa Telecom also provides its subscriber with the best network quality along Taipei Metro system with assistance from OptiMo GSM/GPRS^TM. Drop calls and handover failures have reached historical low level along Taipei Metro, while the subscriber base is still fast increasing. The optimization result has not only improved Chunghwa Telecom¡¦s network condition, resulting in capital savings on network equipment purchase, but also forecasted Chunghwa Telecom¡¦s traffic growth in the project area, allowing the operator to plan ahead based on the company¡¦s marketing plan.

Mr. Yin-Yuan Su, Deputy Managing Director of Network Operation & Maintenance Dept. of Chunghwa Telecom Mobile Business Group, expressed in his opinion: ¡§We believe the strength of this optimization system isn¡¦t just on its accurate computational models and support for our MSC and BSC growth, but also the chance that it gives to the operators in improving network quality, and gives us happier subscribers¡¨.

As Chunghwa Telecom is completing its fifth phase of network expansion toward the end of this year, both Chunghwa Telecom and Groundhog Technology is now continuing talks about another round of collaboration. The initial focus is to improve Inter-RAT operations and prepare the network architecture for integrated GSM/GPRS/UMTS network growth.

Chunghwa Telecom (www.cht.com.tw) is committed to innovation, speed, reliability, simplicity, and economy. It seeks to enter the ranks of the world-class telecom carriers by linking the world and the people through superior service, enterprising management, and continually improving performance. Chunghwa Telecom operates both domestic and international telecom businesses. It also invests in related businesses, and other ventures as authorized by the Ministry of Transportation and Communications.

As a spin-off from Massachusetts Institute of Technology (MIT) in the USA, Groundhog Technologies (www.ghtinc.com) has developed sophisticated mathematical modeling technologies using realistic modeling systems to describe and leverage the mobility and traffic patterns of wireless networks from a temporal (time) and spatial (geographical) level. This data provides deep insight for performing wireless network optimizations to reduce equipment loading and failure rate. Groundhog Technologies has optimized some of the world's busiest networks, improving network performance, increasing subscribers' satisfaction, and in some instances materially increasing revenues.

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