INTERVIEW-Chunghwa Tel open to China, sees flat '09

* Eyes China investors, awaits regulations

* Says flat revenue for 2009 would be not bad

* Revenue from mobile internet to grow at 20-30 pct

(Adds details, quotes, analyst comments)

By Kelvin Soh

TAIPEI, June 1 (Reuters) - Chunghwa Telecom (2412.TW), Taiwan's largest telecom operator, is open to investments from China or investing on the mainland once regulations allow, as both sides forge closer ties, its chairman said.

Taiwan and China have signed a series of business deals over the past few months, mainly opening up the tourism and transportation sectors, with investors expecting more agreements in the financial and telecoms industries.

"We're keeping our options open," Chunghwa Telecom Chairman Lu Shyue-ching told Reuters in an interview on Monday. He was speaking ahead of Tuesday's official launch of Computex, the world's second-biggest PC trade fair.

"China is one of our largest sources of income right now for roaming and the biggest market for our subscribers going overseas," he said.

"Anyway, about 34 percent of our shareholders are foreign, so it really depends on how the law turns out," he said.

Possible Chinese interest in Taiwan's cut-rate telecoms sector has been an area of interest for many investors since China Mobile (0941.HK), China's top telecoms carrier, said in April it would buy 12 percent of Chunghwa's rival Far EasTone (4904.TW). [nLT876587]

CONSERVATIVE ESTIMATE

Lu was cautious about his company's overall revenue prospects for the year, but said a flat revenue performance would be not bad as corporate customers pulled back on spending.

Lu's forecast appears conservative as 12 analysts from Reuters Estimates expect Chunghwa Telecom's revenue to grow more than 5 percent this year from T$186.8 billion ($5.8 billion) last year.

"There are signs that the economy is turning around, so hopefully that'll mean we don't do too badly, but I think a flat revenue performance will be not bad," said Lu, a graduate of the University of Hawaii who became chairman late last year.