He Chendan, president of Chunghwa Telecom, the largest telecom company in Taiwan, has expressed his wish to enter the mainland market through a indirect investment in a small mainland telecom company and cooperating with the mainland's fixed telecom operator for 3G services.

He has told local media that Chunghwa Telecom plans to take a proactive step to cooperate with the mainland's China Telecom and China Netcom after they obtain the 3G license, which is expected to help both of them increase their profit-making capacity.

However, Chunghwa Telecom's plan does not conform to Taiwan authority's rules which say that Taiwan telecom operators must not invest in the mainland's telecom industry or provide telecom service in the mainland, but He said that he has begun to persuade the authorities to remove this limit.

Chunghwa Telecom also plans to hold some shares indirectly in a small telecom company from the mainland. He said that they have begun cooperation with a mainland company and will soon set up a third party holding company so as to hold the share of this mainland company, but he refused to disclose the name of this mainland company.