Host: Eastern Asia Society for Transportation Studies
Pages 45
This article empirically analyzes production and cost efficiency changes in the Chunghwa Telecom Company (CHT Co.), before and after privatization. The input-orientation Data Envelopment Analysis (DEA) and Cost-DEA were the research tools used in this study, and the findings showed that the efficiency performance has significantly improved after partial privatization. However: under this condition, the CHT is still restricted by some government policies and regulations that have resulted in its failure to achieve any significant improvement in its cost management. The government needs to eliminate its control and regulations in order to solve this problem. This will provide CHT with a completely privatized environment that will allow it to face a very competitive telecommunications industry.
