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

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

Taiwan and China have signed a series of business deals over the past half a year, mainly opening up the tourism and transportation sectors, with investors awaiting 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 at the company's headquarters on Monday.

"China is one of our largest sources of income right now for roaming and the biggest market for our subscribers going overseas. Anyway, about 34 percent of our shareholders are foreign, so it really depends on how the law turns out," he said.

Revenue from mobile internet plans, one of the company's and the sector's fastest-growing revenue sources, should continue to grow by 20-30 percent this year as more consumers begin surfing the internet on their smartphones, he said.

However, Lu was less upbeat about the company's overall revenue prospects for the year, saying a flat revenue performance would be not bad as corporate customers pulled back on spending.

Chunghwa Telecom competes with smaller rivals Taiwan Mobile (3045.TW) and Far EasTone (4904.TW) in the island's saturated and competitive telecom sector.

(Reporting by Kelvin Soh)

((kelvin.soh@thomsonreuters.com; +886 2 2508 0815; Reuters Messaging: kelvin.soh.reuters.com@reuters.com))

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