Abstract The liberalization of the telecommunication market in Taiwan began in 1987 with the permission of consumers to legally own communication terminal equipment. Since then, the rapid advancement in telecommunication technology and the change in market demand have gradually diminished both the need for a monopolized telecommunication market and the validity to protect public interest. In addition, the demands under the Basic Telecom Agreement, an agreement reached by member countries of WTO, have made it clear that an open, liberalized, and privatized telecommunication market is inevitable. Since his inauguration as Chairman of Chunghwa Telecom Co., Ltd., on Aug 21, 2000, C.K. Mao had been carrying the responsibility for a smooth transformation of Chunghwa Telecom, from a government-run corporation to a private enterprise, while continuing to function as an efficient conglomerate of social resources and services, and to maintain its competitiveness in a fully liberalized market. In the course of privatization, Chunghwa Telecom has to compete with other service providers not only on its organization, efficiency, cost, product variety and service quality, but also on network build-out, technological advancement, and overall operational strategies. After 2 years and 5 months of facing harsh challenges coming both domestically and internationally, Chunghwa Telecom still unshakably leads the market. This paper tries to analyze the course of Chunghwa Telecom¡¦s organizational change initiated by Mr. Mao, the former Chairman, and, through his experience of a successful enterprise transformation, hopes to provide a paradigm for many other government-run enterprises, which will soon be facing the same forces of organizational change, and the pressure of privatization that were once dealt with by Chunghwa Telecom.

With the advancement and development of technology and in response to an era of digital convergence and an environment of changing media, every advanced country in the world is eager to promote the digital industries. In order to get connected with the rest of the world, Taiwan has drawn a plan to retrieve all the analog channels in 2010, urging the TV systems in Taiwan to entirely enter the digital era. This research drawing on the perspective of the diffusion of innovations explores the character traits of the early adopters of the Chunghwa telecom MOD services. The researcher utilized demographic variables, individual innovativeness, media use and opinion leader tendencies to exam the character traits of Chunghwa telecom MOD early adopters. This research adopts the research method of questionnaire survey and collects 334 valid questionnaires. Through statistic analyses, the result shows a significant correlation between the early adopter character traits and education level, income, individual innovativeness, opinion leader tendencies and newspaper exposure. With the understanding of the character traits of Chunghwa telecom MOD early adopters, this study helps not only offer the system operators some suggestions on promotion but also expedite the diffusion of digital TV in Taiwan.

Global telecommunications liberalization and a series of policies continually promoted by the government have contributed to comprehensive liberalization of the domestic telecommunication market. In addition to complying with the national telecommunication policies, the major duties of Chunghwa Telecom are to create corporate value and maintain sustainable operation following privatization, as it confronts rapid advancement in telecommunication technologies, a liberalized market, a changing operational environment, and intensive competition from aggressive competitors. Hence, Chunghwa Telecom needs to address the important challenges in creating a new competitive edge, developing new operational concepts, designing and implementing corporate strategies, utilizing resources, and enabling sustainable development. This study offers an analysis and discussion on Chunghwa Telecom¡¦s corporate competitive strategies following its privatization, as well as on its strategies and financial evaluation in the case of merging Senao, a distributor. SWOT and BCG Matrix are used to analyze the strategies adopted by Chunghwa Telecom, types of its business units, its relative market position and competitive situation, in order to explore the strategy implementation options, optimal allocation and utilization of financial resources, and development direction, to help this company fulfill its corporate strategies. Moreover, the results obtained through evaluation and analysis of the merger and acquisition strategies adopted in the merger and acquisition case are used to verify whether the value and implementation of these strategies correspond to the suggestions provided in the analysis using BCG Matrix, for reference on future planning of enterprise development strategies. The conclusions made in this study are summarized below: 1. Chunghwa Telecom has a solid corporate foundation, relative advantages, excellent development opportunities, and outstanding business units, which provide an advantageous foundation for continual development. Its strategic business units (SBU) are mostly cash cows that can generate great cash flow. There are two stars: broadband service and circuit lease, and one question mark: IPTV. Regarding corporate strategies, the strategic considerations by Chunghwa Telecom in maintaining the advantages of its cash cows (fixed network and mobile service), increasing their competitiveness, and maintaining their relative market share, are therefore necessary and cannot be ignored. 2. In addition to its leading position in market share, Chunghwa Telecom has quickly entered the distribution market by its successful vertical integration with a communication product distributor on the basis of a long-term strategic alliance. The efficient merger and acquisition strategies and optimal utilization of resources create a win-win situation. 3. Under the guidelines for SBU distribution, the benefit gained from the case of merging Senao is higher than that of other investment cases, as the basis of the cooperative strategic alliance and implementation of the strategies regarding utilization of financial resources and operational personnel contributed to fulfilled corporate strategies and a new corporate value. This case can therefore serve as reference for future investment.

Abstract Ever since the telecommunication is opened and liberalized, it to be privately owned is inevitable, however if the government promotes the policy of privately owning by the people, what concerns the employees of the public enterprises most will be the loss of guarantee of work rights, and they will fear that their labor conditions and welfares be influenced, and thus adapt the behaviors of being uncooperative and resistant, and simultaneously tend to move away from the centripetal force of the company. This research is proceeded by means of questionnaires on the basis of the relative factors and its relations of the recognition on ethics atmosphere, organizational promises and organizational civil behaviors of the employees of Chunghwa Telecom, since the Hsinying Operation Office and Chiali Operation Office of Chunghwa Telecom were merged on June 1, 2000. The research targets were those three of the one staying in the Hsinying Operation Office, the one being transferred from Chiali to Hsinying Operation Office, and the one staying in the Chiali Service Center. Study was made on the influences of relative factors between the ethics atmosphere, organizational promises and organizational civil behaviors after the organization is merged. A total of 260 questionnaires were distributed, after 193 copies were returned and turned to be effective and been analyzed with supportive evidences, the data was processed with analysis of validity, t examination, analysis of coefficient of variation on sole factors, Pierson¡¦s relative analysis and rotating analysis. Studies were made on the differences and its relative influences of individual variations and categories of employees to the ethics atmosphere, organizational promises and organizational civil behaviors after the organizations of Chinese Telecom were merged. After the results of the research are synthesized, it is found that: (1)There is a remarkable diversity among different categories of employees on ethics atmosphere, organizational promises and organizational civil behaviors. (2)Among different categories of employees, the performance on organizational civil behavior of the employee being transferred from Chiali to Hsinyin outranks the other two on ethics atmosphere and organizational promises. (3)Males care more about the ethics atmosphere than females, yet there is no remarkable diversity on organizational promises and organizational civil behaviors between two sexes. (4)After the amalgamation, of these three categories of employees, the employee of Hsinying Operation Office agreed least with the care toward the ethics atmosphere, therefore, the humane care of the organization should be reinforced to raise the satisfaction degree on ethics atmosphere and the identification degree on organizational promises of the organization, in order to promote the raise on organizational civil behaviors of the companies. (5)Other than that sex and seniority having remarkable negative influences on being persistence to one¡¦s duty in individual variation, whereas marriage has remarkable positive influences on being persistence to one¡¦s duty, categories of employees has remarkable negative influences on human relations to others, whereas there is no remarkable influence on the three structures of organizational civil behaviors for the rest individual variations. (6)They all have remarkable positive influences on the trend of regulations of ethics atmosphere towards the three structures of organizational civil behaviors, there are remarkable positive influences on individual profit towards human relations to others. For organizational promises, emotional promises has remarkable influences on organizational profits and human relations to others, whereas they all have remarkable positive influences for continuous promises to being persistence to one¡¦s duty and moral promises to being persistence to one¡¦s duty and human relations to others. According to the results of the above research, the following suggestions are made: create new business aggressively to guarantee the work rights of the employees, and promote the will to accept the revolution of being privately owned by the people of the employees; enhance the cultivation of the personnel to decrease the resistance on the revolution of being privately owned by the people of the employees; institute anew each system appropriately; reinforce the functions of communication and coordination among the units, delegate the authorities of positions specifically to raise the operational efficiency of the organization: improve the ethics atmosphere and organizational promises to raise the centripetal force and will to work of the employees. Key words: Ethics Atmosphere, Organizational Promises, Organizational Civil Behavior, Chunghwa Telecom.

ABSTRACT The employees of Chunghwa Telecom, in their fighting against the amendment of Three Telecom Laws in 1995, set up a claim of Industrial Democracy and demanded there must be union¡¦s representatives in the company¡¦s Board of Directors, as has caused wide discussion in the society. On June 30th, 2000, Chunghwa Telecom Workers¡¦ Union¡]CTWU¡^successfully lobbied the Congress to pass ¡§The Amendment of the 35th Article of the State-run Enterprises Management Law¡¨, in which there is a mandate which says ¡§There must be at least one-fifth members of the company¡¦s BOD in a state-run enterprises nominated by the union¡¨. Such a drastic change enables laborers to share the management decision power, as has great influence on not only future labor and management mutual reactions as well as the conception of labor value, but also the management of the company. It¡¦s an Era of knowledgeable economy. In Taiwan, after the implementation of political democracy, calls for social democracy and economic democracy have become louder. From the 928 teachers demonstration parade, proposing to organize teachers union and asking rights to negotiate, till the Congress passed the Law of ¡§Association of Public Officials¡¨, which successfully got the Ministry of Civil Service under the Examination Yuan to initiate the first Association of Public Officials on January 15th in the year 2003. In the future, the Association of Public Officials can be gifted with the power to negotiate with the Government on related labor conditions of public officials. The relationship between public officials and the government has turned from extraordinary power relations into official duty relations pursuant to the Public Law. This tendency is very similar to that in an enterprise, which emphasizes the involvement of employees and advocates the labor-management relations to be partnership rather than subordination. This concept is sort of the Civil Society emphasized by European industrialized nations, as also complies with the Post-Materialism tide. Therefore, the researcher thinks that Taiwan has moved from political autocracy to democracy, and the society has stepped from door-shut into door-open. The economy has also adjusted from monopolization to liberalization. All the variation is the process of sharing democracy and also a proof of the improvement in Taiwan¡¦s special labor rights. This research is based upon the actual processes of the CTWU¡¦s struggling industrial democracy. By virtue of related reports, the researcher has got involved personally observing and discussing with specialists and union leaders and then made a systematic analysis and conclusion. The researcher intends to talk over the positive value practicability in which the state-run enterprises labor and management can obtain a realization of being in the same boat through the industrial democracy. According to this research, it is hoped that people can examine which way is right in managing a union so as to give suggestions to future non-profit organization¡¦s development and labor-management relationship. From this research, it is found that according to reports, the foundation of the industrial democracy of the European developed countries comes from the enthusiastic support of laborers and the strong power of labor movement and labor unions, as can thus turned the industrial democracy into political implementation. In Taiwan, not only there is no powerful labor movement and labor unions to support the industrial democracy, but also there is a conception that the industrial democracy is the Pandora¡¦s box of union¡¦s power conflict and union leaders jumping board. This phenomenon reveals the special political environment and the leaping democratic structure in Taiwan. Therefore, how is the system of industrial democracy carried out not only in state-run enterprises but also gradually in the private enterprises though the social, union and laborers supporting power are weak? The research suggests that labor side, management side and the government should continue mutual dialogues in an open-minded attitude and try to organize with the spirit of company¡¦s management to get a triple win result.

After Taiwan lifted martial law in 1987, the Legislative Yuan enacted the amendment of the Act of Privatization of Government-Owned Enterprises in 1991; the Taiwanese had the first direct presidential election in 1996; the Legislative Yuan passed the Telecom Three Laws¡XTelecommunications Act, Organizational Statute of the Directorate General of Telecommunications and Chunghwa Telecom Company Act. Chunghwa Telecom Company was set up accordingly. It was the first time in Taiwan to have the ruling party changed in 2000; Ministry of Transportation and Communication approved three private fixed network businesses involving telecommunication operation; the Legislative Yuan passed the amendment of the Article 35 of State-owned Enterprise Management Act requiring that one-fifth of board of directors shall be designated by unions. In the year of 2003, the Legislative Yuan passed the resolution that any business with 20% of state shares shall have one union representative on the board of directors. The Democratic Progressive Party won the second-time prudential election in 2004; in the following year, Chunghwa Telecom Company became a private business. The Taiwanese experienced the second regime change in 2008. Asian financial crisis of 1997, the scandals of Enron and WorldCom of 2001, and global financial tsunami of 2008 have caused society unrest and economic recession. Consequently, corporate governance has become the global focus. Due to the negative social effects caused by the CEOs responsible for the international financial tsunami, it is the best time to re-examine the relations among employees, businesses, and governments. Telecommunications industry is an important platform for social networks, it not only has the features of monopoly and oligopoly, but also highly involves in public service that affect the development of a country and people's lives. This study adopts case study (document analysis, participatory observation, and content analysis) and comparative research as the main research methods. Based on the perspectives of neo-institutionalism, social capital theory, and IDA, the case of privatization and corporatization of Chunghwa Telecom Company is chosen to explore and analyze the institutional change process from a government-run Directorate General of Telecommunications to a private business, as well as from industry monopoly to a free market that have embedded in economic freedom, open society and political democracy. The process has involved huge commercial interests, consumer rights, and telecommunication workers¡¦ working rights. Before and after the formation of the policy, how the Chunghwa Telecom Workers¡¦ Union , a stakeholder of the privatization policy, initiated and put its claim for "industrial democracy - participation in management" in practice within the interactive relations among labors, employer and government is the focus of this research.

Around the world, countries are moving towards a market economy in order to integrate the global marketplace. Telecommunications are among the industries concerned the most in this trend, as governments are significantly reducing their involvement in this industry through liberalization and/or partial or complete privatization of their national telecommunications corporations. For Burkina Faso it is no different, as ONATEL, the national telecommunications company in Burkina Faso, has been caught in this trend. Since December 1998, the government of Burkina Faso initiated a reform of its telecommunications sector with the overall goal to achieve the liberalization of telecommunications services, and accomplish a mixed ownership of ONATEL. The objective of this study is to review the ongoing privatization of ONATEL based on an analysis of general practices regarding economic reforms applied elsewhere, and then make recommendations for both the government of Burkina Faso and ONATEL, for a successful implementation of the process and the national telecommunication policies. We accomplish this objective through four research questions. The first one correlates privatization and economic development with the aim to see how the divesture of ONATEL can foster the telecommunications development in Burkina Faso. The second one emphasizes the government chosen strategy to privatize ONATEL, allowing for a review of alternative privatization methods and the rationale behind the government’s option. The third research questions deals with ONATEL’s strategies to sustain its development amongst an environment of increased competition. This question facilitates an assessment of the firm’s preparation for competition and allows for the formulation of some recommendations in such regard. The last research question touches on the privatization process of Chunghwa Telecom, the once, state-owned Telecommunications Company in Taiwan. This final aspect of the research helps to extract effective lessons that can be applicable for the government of Burkina Faso and ONATEL, by analyzing and understanding the privatization experience in Chunghwa Telecom’s methods and formulations of business strategies, for their own privatization.

2007年是中華電信企業民營化的第二年，如同以往地在業務面及財務面締造了佳績。然而，在2007年9月時，中華電信與香港高盛簽下一紙長達10年期的外匯避險合約，使得中華電信在隔年第一季公佈高達新台幣40億元的未實現匯兌損失，引起市場一片譁然與投資人的輿論，認為此合約讓收入多以新台幣計價的中華電信陷入了不必要的衍生性商品陷阱之中。本個案讓閱讀者以當時中華電信財務長謝劍平的角度，帶領閱讀者解構、分析這個極具爭議的的結構型商品。過程中牽涉到避險決策、契約評價、代理問題、公司治理、外匯預測、市場效率性等議題。2008年10月契約觸及匯價32.7終止，中華電信最終獲利新台幣3010萬元出場，新台幣10多億的帳面損失也全數回沖。個案閱讀者能從中學習到重要的思考過程，並做出權衡之下對股東利益最好的決策，我們發現這個外匯避險契約本身並無絕對好壞，因為這是一個風險控管與節省成本的抵換關係，端看決策者的出發點、需求及風險偏好決定。 / 2007 was the second year after the privatization of Chunghwa Telecom, the financial performance was strong as usual. However, on September of the same year, Chunghwa Telecom had signed a 10-year currency hedging contract with Goldman Sachs, which leads to NTD 4 billion unrealized book losses in the first season of 2008. Investor and the public were shocked about it, because it was not compatible with the company’s corporate image, and the book losses was too huge. Many public opinion criticized that it was a big mistake for Chunghwa Telecom, which let them fall into the trap of financial derivatives. This case put students back to the scenario of September 2007, played the role as Chunghwa Telecom’s CFO, CP Shieh. The case will guide them understand how to decompose and analyze a tailor made structure product provided by investment bank. In the analyzing process, readers will involve many interesting issues, like hedging decision, contract valuation, agency problem, corporate governance, forex forecasting and market efficiency. October 2008, the contract knocked out by reaching NTDUSD quote 32.7. Chunghwa Telecom end up gained NTD 30.1 million from the contract and over NTD 1 billion unrealized book losses were also reversed. Case readers can acquire important intuition during the analyzing process and make decision based on the shareholder’s best interest. There is no absolute answer to dictate whether this hedging contract was good or not, because it was a tradeoff between risk control and cost saving. It depends on the decision maker’s point of view, demand and risk preference.

Abstract There are lots of disadvantages such as the complicated of legal, the inefficiency of decision and the lack of performance. So the government had established ¡§The Privatization Promoting Group for the Executive Yuan of the Republic of China¡¨ in July 1989. The chairman of Council for economic planning and development was the convener. It had made a series of the privatization of stated-owned policy and planned the privatization of stated-owner¡¦s schedule according to different character. Recently stock releasing had already failed. The government, the administration and the employee was dissatisfied with the process of stock releasing. So our study mentioned the design of financial imagination. This design was that led into employee stock ownership plan in the success of the privatization of state-owned and included stock ownership of stock floatation. Both of the close-ended periods were extended to the infinite period. At last our study took an example for Chunghwa Telecom Company and evaluated this design if whether can be executed. My study found that this design could make the employee gain the director number of 1.3 to 2.6. It would enhance efficiently the director number and stabilize the employee ownership. My study expected that it had lots of advantages as follow: (1) Benefit for the privatization of stated-owned (2) Protecting the terms of the employee¡¦s equity (3) Making the employee ownership system (4) Solving the dispute between labor and capital (5) Rational for the stated-wealth¡¦s evaluation (6) Strengthening the corporate governance