Welcome everyone to Far EasTone's 2021 fourth quarter earnings conference call. All lines have been placed on mute to prevent background noise. After the presentation, there will be a question and answer session. Please follow the instructions given at that time if you would like to ask a question. For your information, a webcast replay will be available within an hour after the conference is finished. Please visit www.fareastone.com.tw under the Investor Relations section. Now, I would like to introduce Mr. Gary Lai, the IR Officer. Gary, please begin.
Good afternoon, everyone who attend Far EasTone fourth quarter 2021 results conference call. Our President, Chee, and CFO, Sharon, both joined this call with us to discuss APT merger 2021 results, as well as 2022 guidance. Before Chee's presentation, please pay attention to our safe harbor statement in the first page of our presentation deck. Let me hand over to Chee, please. Thank you.
Okay. Thank you, Gary. Good afternoon, everyone. Thank you for joining. I know there is some anxiety and excitement, and this is a call supposed to cover our fourth quarter last year's earnings, and also our forecast for 2022. Since we announced our merger plan with APT on Friday evening, so we are going to change our sequence a little bit, and then we will just get to, what you're thinking about or what you're, trying to find out. We'll talk about the summary of the FET and APT merger plan, at first. Okay? Plan that we, FET, are going to issue 356 million, or to be exact, 356.7 million new shares to merge with APT.
FET will be the surviving company, and APT shareholders, each of them will receive for each APT share they own, that they will receive 0.0934406 FET share. In total, APT shareholders together will receive 9.87% stake in FET. Our combined telecom subscribers will become over 9.2 million or so. The merger, of course, is subject to the approvals of relevant authorities. We do expect about TWD 3 billion. This is a rather conservative estimate, but we do expect about TWD 3 billion EBITDA synergy first year after the merger, and no impact to net debt, EBITDA ratio, I mean, multiples. We expect earnings accretive from year one. All right?
We'll talk about the synergies in the following three slides. We have a total of nine items that we'd like to just highlight for you all. First of all, this is going to be a superb spectrum match with existing equipment and technology to sustain our leading network position. First of all, our 5G bandwidth in the mid-band, that is, currently we have 80 MHz in the 3.5 GHz bandwidth, and there's a spectrum, and then we will get additional 40 from the 40 MHz 2600 MHz TDD of APT and Far EasTone combined. This can be used for 5G bandwidth expansion, just through the carrier aggregation technology. This is additional 40 MHz to our mid-band 5G spectrum.
Just for your information, the cost that we pay for the 2600 MHz TDD is about 20% of the 3.5 GHz, you know, spectrum that we paid for. Okay. Then also, we will have the largest and then also contiguous 700 MHz bandwidth for 25 MHz. This is the best spectrum because it's deep, it's low, and it can improve the network throughput in the 5G indoor penetration. Combining by joining with APT, we will have the largest and contiguous 28 GHz bandwidth, and together it will be the 800 MHz. This will put us in a very competitive position for more private network scenarios that we can support for the industrial applications, as well as the LEO, the Low Earth Orbit business that is emerging. Okay.
Secondly, this will give us increased national and regional fiber backbone coverage and reliability. APT has good asset and also the agreement with the Taiwan Railway that gives us a very good fiber asset. Okay. This slide is just, you know, for the APT, FET spectrum match for your information. You can look at that on the top for the 700 MHz area that we combined. We are right next to each other, and it's a 25 MHz. Then if you look at, that is for the sub-1 GHz auction, and the license is effective to 2030. For the 2600, as you see all the way to the right, APT has 20 and we have 20.
Together, that's a 40 we can refarm for 5G. For the 3.5 GHz, right now we have 80 and we are between T Star and Chunghwa. That's our position. We did pay for this location and then for competitive advantage. The 28 GHz area that combined with APT, who is right next to us, is 800 MHz. Okay. Next. All right, continue with the merger synergies. Number three is the significant network CapEx and OpEx savings, because we can increase our radio capacity without additional capital investment or little, and then we can also combine existing Ericsson equipment for the matching spectrum for reuse. That's why this matching is very important.
All from GT or APT some spectrum are matching with what we have, is a subset of what we have. That gives us this additional advantage. You know, we use the equipment because it's the same spectrum, and you just double up the capacity, and then by the end, you only need one set of equipment. We can scale back on our growth for additional equipment needs just by reusing what APT already has. Then also in terms of the annual support, maintenance costs, optimization costs, and then, you know, those are big dollars to pay to the vendors. Then also operating expenses cost from network consolidation and mobile rent for transport networks included. That's a lot of savings there. Also we see that the backbone of coverage is strengthened, right?
Enhanced, as I mentioned, briefly on the previous slide. Also in terms of the IP transit and peering cost, APT has a higher unit cost and then probably because of their scale, but they are now combined with us. All these costs will be at a lower unit cost, so that's additional savings as well. Okay. Then now those are just looking at how we can improve the efficiency of the capital by the scale and also by co-consolidating and saving on the capital investment as well as the OpEx spending.
If you look at on the upside in terms of for growing the additional revenue, of course, with the broader customer base, you know, that is a bigger base for us to do the 5G conversion or just to upsell, so that will contribute to the uplift and of course the telecom revenue and also the ARPU. In terms of additional, that is cross-selling, FET does have digital services and in addition to the friDay Video music, friDay Shopping, and then also since a year ago, we launched FET Mobile Circle. That is to have quite a bit of co-creation with our alliance that provide additional services for our users to consume. All those, you know, by combining with APT, the user base has since broadened.
We look at this is additional cross-selling opportunities for us and additional digital services revenue accordingly. Okay, next slide. All right. Then also on the enterprise side APT has good fixed asset, and then also I mentioned you know the fiber asset as well. Then they have been working in this enterprise ICT, the smart devices area as well. We do see the synergy by combining the two companies, the two workforce to grow this continue to grow enterprise ICT and big data business. As you may recall or you will see that later in my presentation for the BAU 2021 performance, our smart ICT continues to be our growth engine and drive our revenue growth very, very nicely. Okay.
Of course, with the Foxconn support behind APT, we see more Foxconn and FET collaboration opportunities. Then also, combine the two networks together with this additional spectrum, you know, assets and then also the one network, and we can expect to improve customer experience. Also, last but not least, we like to improve the environmental sustainability. Everybody knows that. The real radio stations, they consume a lot of electricity, which we are really short of in Taiwan. What we could do as a telco industry is we can do more consolidation and then make all these network investment and then electricity use more efficient, right? We really cannot afford to not think about all that.
By combining two companies together, we are looking to consolidate two 5G cores into one, and we could consolidate two 4G networks into one. Also, greater than 90% of APT cell sites can be consolidated with FET. This is not only good for the environmental sustainability, of course, that means a lot of dollar savings as well. Okay. With that, I sum up the merger synergies for you all. Okay? We can have a Q&A after I finish the rest of the presentation, if you don't mind. I'll continue with our fourth quarter and full year performance overview for you. All right. We have very solid fourth quarter last year.
As you could see, across from total revenue, EBITDA or net income and EPS, Y-o-Y is all positive, you know, close to 5% growth across the board. In terms of the full year, right, we actually achieved TWD 85.3 billion revenue, and that is a 7.3% year-over-year growth. In terms of our target achievement, it's 103.7%. If you look down, our EBITDA is also increased by both from the achievement rate and also the Y-o-Y, it's about 2% growth. Our net income increased at 9.2%, and is the EPS 2.8 against our target that was 2.56.
I do want to remind everybody, the sale of our one building was accounted for when we set the target last year for the 2021 target 2.56. We definitely, you know, outperformed our own target by almost 10%. 9%. Okay. All right. Continue with our financial performance. If you look at that, we have improved our net debt and net debt to EBITDA multiple. Our free cash flow remained very sound and healthy. Okay. Our full year 2021 CapEx ended up with TWD 12.1 billion. It's about 19% below the guidance of TWD 14.9 billion.
We do have about more than TWD 1.5 billion carried over to 2022, but we also at the same time we have you know more scrutinized our capital spending. That's why we were 19% below our guidance for 2021. Okay. All right. Just some quick highlight and overview. We have seen very solid growth on mobile postpaid customers, even though the market we have been saying it's oversaturated. You can see that we still managed to have a 1.4% YoY revenue increase. This is really reversing years of a declining trend. This is really a big deal. Also if you look at the mobile ARPU, right?
We were the first in the industry or among our peers to start turning our ARPU year-over-year positive last year. On the right-hand side, our postpaid customers continue to grow, even though it's not like a big jump, but then given this is a saturated market, so we still are happy with the growth that we are able to manage. The team works really hard. Our network is the best, and I think customers, more customers are seeing that. Also on the other hand, our postpaid churn, we continue to manage it down.
In 2021, even though there is the 5G, the new iPhones and all that, they all stir up the churn a little bit, you know, the MNP market, but still we manage the churn rate at 1.1%. There is still room for improvement of course, and we'll continue to do that. Okay? All right. Then a quick update on the 5G, you know, performance and also our progress. Our 5G penetration has exceeded 20%, actually since a couple months ago. Our understanding is ahead of our industry average, and our target is to reach 30% by end of the year 2022.
More than 80% of the 5G users, they signed up for a high-rate plan. The average monthly fee uplift is more than 20% for renewal customers. So far we have deployed more than 9,700 stations for the 5G. We have covered islandwide or nationwide more than 90%. By end of this year, our target is to cover 97%. Okay? We have, you know, with our very strong network team that we have achieved world-class 5G network performance. Last year in September last year, we were awarded the global number one for our uplink and then downlink and also our video experience as the number one. Okay. Next slide. All right.
On the New Economy side, the non-mobile part, the growth engine, right? That continues to be our growth engine. First, if you look at the chart on the bottom. From 2016, that's basically where we started investing in the so-called new business or New Economy, that at that time it accounts for about 5% of our total revenue. Over time, over the years, right? It has increased to 17%. Just look at the Y-o-Y, last year, even though the pandemic came back to haunt us in Taiwan, but then we still managed to have grown 23.4% in our new business area, which is very encouraging. Okay.
Some highlights on the areas where we did especially well on the enterprise side, which accounts for 53% of the total New Economy revenue. The smart ICT revenue grew almost 30% Y-o-Y. Our cloud service also grew very well to 49%. On the consumer side, the media service, the mobile commerce, that's our 5G shopping, both have double-digit and 23, 26%. The Direct Carrier Billing continues to grow in double digits as well. Okay. Some highlights for the New Economy. On the consumer, as I mentioned earlier, we launched this Mobile Circle. It starts as a customer loyalty program.
You know, we already have 3 million downloads, and then the daily active user growth grew 72%. It is encouraging, and it also helps boost our e-commerce sales as well. friDay Video, our monthly active users grew 28%. We were also the number one brand social mentions among local OTT brands. Okay? Our friDay Shopping, the revenue grew 26%. For the Double Eleven, you know, shopping spree, for the e-commerce. During that period, the revenue grew 52.7% compared with a year ago, so which is very good.
The new iPhone launch last year generated excellent bundle sale for not only for the phone, because we have the 5G phone that will come with our 5G service program, the service plan. It boosted about 15% Y-o-Y growth for our total merchandise revenue. Also, it has very good contribution to our, you know, 5G conversion and then also upwards as well. Okay. On the right-hand side is the enterprise. Continue to lead the industry to provide 5G telemedicine services. Already, we provided the service or enabled it to 23 villages in 10 counties. We were awarded a contract by the Ministry of Health and Welfare to grow to 50 villages across 14 counties in 2022.
This is just for your information. This is not just by having the 5G set up. It is also the telecommunications communication platform that we have homegrown created for this telemedicine diagnostic over the remote diagnostics. That whole platform, and then plus the 5G connectivity combined, this is a total solution that we provided to all these counties. We actually won a National Healthcare Quality Award for this, which was rare because usually the recipient of that National Healthcare Quality Award are hospitals or research institutions. Okay. In smart city that we continue to do very well because there are projects that are you know funded by the local government or funded by the central government.
For example, we deployed homegrown and energy management solutions to 1,600 schools in nine counties. You know, also we started in the smart charging stations business and then and also the smart meters, and then also the technology, the computer vision for law enforcement. There are many projects in the smart city area that we continue to see this demand to grow, and it's a steady growth for us in the IoT area. We in the AI and big data growth in public sector, we start seeing that the government also are into so-called transformation. A lot of that started with the data platform that needed to be established or need to be reengineered.
We got engaged in quite a bit of these type of projects. Together with our big data analytics and AI machine learning capability, we have won quite a few, you know, government contracts and then delivered significant results here. Okay. All right. Here is just a glance of some of the awards and recognition. The fourth on the top on the left, that's the National Healthcare Quality Award I was referring to, and that was for our FET 5G telemedicine solutions. We have our smart Energy Management System, EMS, also won awards as well.
These are the areas where we have been trying to spend a lot of time and effort that we encourage our employees to really think, grow these capabilities. Those became instrumental to us providing these homegrown solutions through our ICT business, and which has proven that it has helped increase our profitability and also revenue as well at the same time. There are some other, you know, recognition from you all, you know, like, the FinanceAsia and the Institutional Investor, you know, type of award. Thank you for that. We have continued to earn our corporate governance excellence in those areas as well.
Of course, the first one on the left on the top, that's the DJSI, that we are selected for inclusion in the DJSI World Index for three years in a row. That is something we will continue to do well and then only to do better. Also, FET has always been very customer-focused, and so we actually get 10 years in a row, we get the best service, you know, not just for telecom, it's across all service industries. We got this award 10 years in a row, and this is the 10th, and then the only one, a company that gets this special award. Okay. All right.
For 2022 priorities, and then it's just to, as I have educated with my team, we ought to scale up to grow. We do see a lot of growth opportunities, and this is before we even, you know, think about the merger. We already see the growth opportunity, so we need to scale up to grow. You know, in the past, especially like when we support the enterprise solutions, we have some dedicated resources, we have some shared resources. Then seeing the momentum, the growth momentum in the smart ICT, the homegrown solution area. We have done some restructuring, we have put together a dedicated team to just support the enterprise business unit. Also, we have the FET Mobile Circle.
We'll continue to grow that, and it is the engagement program with our customers. By engaging with our customers deeply, and we do expect that we can see the user's needs more, and then they can consume more in this Mobile Circle through various services that we provided for them. Either it's home grown or it is co-created with other companies and even with some startup companies that they have good new ideas as well. Okay? Of course, with 5G being a revenue uplifter, right, for us, so we're continuing to grow and accelerate our 5G conversion. We will grow our telecom business accordingly.
Customer experience on how to optimize it, and as I mentioned previously for the merger, is that if even if it doesn't happen this year and then the year after, but then improved customer experience with this additional asset that we will acquire from APT. It will make our network even more robust. The kind of service that we'll be able to provide and also with the largest 5G spectrum that per user will be able to enjoy. There will be more 5G, new 5G services that will be available. Our users, our eTalk users will have the biggest bandwidth to enjoy them all. Okay. All right.
For the 2022, our consolidated financial forecast, we are looking at EPS will be 2.83 for this year. By the way, this guidance that we are providing here does not take this merger into account. This is not considering the merger. Okay? If you compare to our 2021 results, from an EPS perspective, it looks like it's only 1.1%, almost like a flat. I do need to mention that sales of the one building again. That one-timer, if you exclude that one-timer, we are really talking about 17% year-over-year growth for our net income and our EPS, okay? That is just for your information and some clarification.
In terms of our CapEx, this year we are really looking at the new capital spending is TWD 9.6 billion, and then plus TWD 1.5 billion that will be carried over from 2021. The total is about TWD 11.1 billion. Of course, with the merger plan on the table, we will also look at if there is more optimization we can do anticipating the merger to be approved. What kind of optimization we can do in terms of our capital spending. This one right now is before we consider any merger in it, okay? All right. Last but not least, about our dividend proposal. We still want to maintain a very stable dividend policy.
For this year, 2021, our proposal is to still provide TWD 3.25 dividend per share. Of course, all this is subject to our general assembly and board approval, our shareholders' meeting.
Meetings.
Yeah, approval. That will be held in June. Okay. All right. Is that the last slide? Okay. That is all the presentation we have prepared for you. I now welcome your questions.
Yes, thank you, President Chee. Ladies and gentlemen, we will now begin our question and answer session. If you have a question for any of today's speakers, please press zero one on your telephone keypad and you will enter the queue. After you are announced, please ask your question. If you find that your question has been answered before it is your turn to speak, please press zero two to cancel the question. Thank you. Now please press zero one to ask the question. Thank you. Our first question is coming from Neale Anderson of HSBC. Go ahead, please.
Thank you. Good afternoon. Congratulations on the merger. That's very good news.
Thank you.
I have two questions, please. The first relates to the TWD 3 billion of synergies. You mentioned that was quite conservative. Would it be possible to give a bit more guidance on that? Does it mainly relate to network costs? I guess that would be the largest part. I'm just wondering if in that you assume any revenue related synergies in that TWD 3 billion figure. That's the first one. The second one relates to the millimeter wave where, as you point out, you have a very strong position. But the adoption of that spectrum has been quite limited so far. I think the U.S., maybe Australia, a little bit Japan, but in other markets, not so much. I'm intrigued by your mention of using that with low Earth orbit satellites and also private networks.
Are you able to give any more details on that please? Both the demand for the private network and what exactly, you know, the plan with the low Earth orbit satellite? Thank you.
Okay. Thank you, Neil. The first question is about the synergy where I made a statement that we are quite conservative when I mentioned the TWD 3 billion first year, right? Okay. Instead of giving a more aggressive number, I think I'll just explain my rationale. You can look at our TWD 3 billion. I look at mostly from the cost saving side, right? Even if I assume a flat, the revenue, and then that will be, you know, that I'm comfortable with the TWD 3 billion kind of synergy contribution the first year. If anything more we do, anything we do more than that on the upside, that will be just a bonus. That's how I, that's why I said it's a conservative estimate. Okay?
For the second question regarding the 28 GHz. You're right. Even for Far EasTone, the private network that we have engaged in so far, we just use the 3.5 GHz network that we have. Well, first, because it's already there, and then also, the adoption of the users, the penetration is still only 20%. There is plenty of capacity and all that. That is also the fastest way to just reuse the existing macro network to support the private network. As we can see, some of the factories and all that are using 28 GHz as a dedicated private network, those scenarios can also work.
Actually, APT already has some deployments. That's why I said once we already, you know, because APT already started that. This is just a matter of when we want to start, you know, engaging that area. That definitely is one additional asset that we can put our private networks with. In terms of the LEO, it is really referring to some of the. I think that's what's it called? Starlink. Starlink. Yeah, and also another satellite company. They were already contacting our government, right? Regarding, you know, how they could operate or how, you know.
If you compare the spectrum that they need to operate with them, and then it is direct, actually kind of coincide with our 2G, you know, 2G area, and in particular, you know, kind of overlap with what APT and the FET both have. That is one area. For some of those foreign satellite operators to work and to cooperate or to try to operate in Taiwan, then that is one area that they will need to talk to us first. That's what I was referring to as a future opportunity. There we may be able to, you know, just joint venture or have some kind of collaboration or profit sharing.
Well. Thank you very much.
Did that help? Sure.
Yes. Just to follow up on the network savings, the timing of those synergies. I'm assuming that because you're both using the same vendor, and as you say the spectrum is mostly contiguous, you can, you know, as soon as you get approval, you can start to realize those cost synergies almost immediately. Is that right?
Correct. That is correct. Yes. Also as I mentioned in the last quarter, I think 92% of their cell sites could be consolidated with us. This is like without me making any network, you know, changes, then we can already just help them consolidate those. With the incremental cost, right? They do not have that whole site maintenance and then utilities and all that they pay at a full rate, so full price. By just consolidating that 90%, and then as soon as we get approval, that is something we can already start with. Each cell site that we will be able to eliminate or, you know, and then that is a one-site savings. We have a look at that.
You know, like, within half year, 80% of the savings will be already achieved from this one item in particular. It's an ongoing process. It's not like you wait for a bulk to realize the savings. It's each site that we'll be able to close down for them, and that is one site of savings.
Sounds great. Thank you very much.
Okay.
Thank you. Next question, Danny Chu of Bank of America. Go ahead, please.
Thank you for the presentation. Just two quick questions. The first one actually is also on the cost savings. Since you've mentioned that, of the TWD 3 billion integrated synergy, so now we should assume it mostly come from the OpEx savings side. But if we look beyond the first year, should we expect just on the cost savings side, the savings will be more than TWD 3 billion or less than TWD 2 billion? Kind of like, I mean, if we look one year further. My second question actually is related to CapEx. Earlier you mentioned that, there was some CapEx savings for FY 2021. Could you elaborate a little bit more?
Is it because of the drop in the equipment pricing or, after our initial planning, we decide that we don't need to roll out as many base station as we initially thought? Also going forward related to CapExes, assume the merger get approved, what kind of CapEx savings should we expect in terms of magnitude? Thank you.
Okay. For the first one, yeah, a big part of the savings I was looking at is from the OpEx side, right? Those are like annual, so you can kind of look at them as recurring. The savings will be recurring as well. In terms of the CapEx savings, just to give one example, right? Like, for 700 MHz spectrum, APT has previously, because they are sharing with our 3.5 GHz spectrum, and then the NCC has kind of requested them to do more investment to improve their 4G network. They have since acquired, you know, new 4G RAN equipment from Ericsson, and those are the newer models and all that.
Far EasTone, on the other hand, we are also in the process of modernize our 700 equipment. For that, you know, given they already have quite a few thousand of them, 4,000 such network equipment, and that means I do not need to buy another 4,000, and those can be just reused once we combine. That give you some ideas about the kind of savings we are talking about. Did I help, Danny?
Yeah, the third apply to the FY 2021 situation that you mentioned initially with budget, about like, I mean, TWD 12.something billion EBITDA.
Oh.
In the end, you only spend about like TWD nine point something billion.
Yes. Yes, yes. Okay. What I actually asked my team, the network team to do, like today, I told them, I said, "Okay, I know you have given me this network plan, right? For this year, and based on that, we approved, you know, a total CapEx, but then a big part of it, of course, is network. Network is my money burner." I told them that is based on, you know, without anybody knowing that we will do the merger. I said, "So now given the merger, right, you need to kind of do some optimization.
Some of the equipment or some of the investment in some of the areas that you were thinking to do, now anticipating the merger, if that will be granted in, you know, nine months or so kind of time frame, can this be something deferred? Then if we can merge, then there's no need for it. If we don't merge, that can be done, that could be picked up then. This is the kind of optimization that my team is going to do. They already got the order from me.
That's why I was saying I would expect some of this request that they have submitted for the capital spending will be scrubbed and then reprioritized, and then some of them could be deferred, and then that would, that will not spend this year.
I see. Thank you.
Okay. Sure.
Next we'll have Sara Wang of UBS for questions. Go ahead, please.
Thank you for the opportunity to ask a question, and congrats on the results. I have two questions. First is regarding the New Economy revenue. The revenue growth here is quite solid. May I ask what's the margin profile here, either gross margin or EBITDA margin? And the second question is that for the 2022 guidance, I understand that does not take the merger into account. It seems we target EBITDA to grow by 8%. May I ask what's the key driver here? And maybe more into the mid to long term, given our mobile market has consolidated and mobile churn remain low. What do you think or is there anything changed in your view that Far EasTone in terms of Far EasTone's competitive advantage?
For example, is there any new area that Far EasTone will focus more on? How you Far EasTone positions?
Okay, Sarah. Let me just make sure I capture your question. The first one is about New Economy, right? Our overall New Economy growth margin remains about above 30%. Okay? For the digital services growth margin, that is close to 50% in 2021, yeah. ICT is around 15%, and that is something with our, you know, homegrown solution. We anticipate this will continue to grow. That is also something I'm driving my team to as to set KPI for that as well. Okay, that's your first question. Your second question is about?
The EBITDA growth driver.
The EBITDA growth driver after the merger or before?
Before.
Yeah. Just based on the 2022 guidance.
Well, actually, I see, you know, as for the telecom, you know, we already reversed the trend of declining. Telecom accounts for almost 80%, right? Combined the device and also the service revenue. This is, you know, for every percent that we will be able to to grow, and that's a big base to grow from. Telecom definitely, that's why I have this saying with my team, is we have to really focus to grow our telecom business, especially because of 5G and because we build a robust 5G network, right? We really have done very well, and we have achieved world-class, you know, network performance.
That is very important from the telecom, you know, perspective. We will continue to grow telecom, which is different in the past few years because telecom has been kind of declining. While we focus on new economy, but as you know, the weight is different. Now what we are seeing is in addition to we see the demand, you know, the growth momentum on the new economy, but then even better, we see the momentum on the telecom as well. In terms of each of the driver, I will say it's both the telecom and also the new economy. Within the new economy, you know, we did especially well with our enterprise side, right, last year. I do expect to see that continue.
On the other hand, you know, just some side notes. I have restructured our consumer BU to two divisions. I separated the consumer BU, the telecom from the consumer BU digital services. And then also, you know, with the two senior VP, I put, you know, one for each, so that we have focused attention by the executive leader to grow and to drive, you know, the telecom as well as the digital services on the consumer side. Yeah. So I do expect that if you ask the drivers, it's the telecom business, it's the new digital services, and also it's the enterprise, the smart ICT. Okay.
Got it.
You probably have another question. Would you repeat it for me, or did I answer it all?
Yeah. Let me rephrase my final question. For the enterprise segment, we actually see that Far EasTone gained a lot of projects. What do you think is the key reasons here, given the market has another incumbent. Well, what's the key reason that Far EasTone can keep winning projects on the enterprise side, especially from the public sector?
Well, thank you. I think you are helping me with like, a little bit kind of like, my soapbox kind of story here. I think the efforts that we have put in this big data and then, you know, AI and then, IoT areas, you know, and also cloud, right? They didn't go unnoticed. We built our reputation over the years with our homegrown solutions and with our team's agility and flexibility in meeting the customer needs. That is why even non-incumbent vendors by all of these, you know, government agencies. We were able to really break through that barrier. You know, the reputation just goes around.
We have been getting good projects, and then winning good projects. Just like for example, the telemedicine, right? The Ministry of Health and Welfare, they actually you know do look upon our team to you know help them kind of provide some of these specs information and all that. Because we have worked really long time and then spend a lot of time understanding the telemedicine various needs. They would talk with us about these related issues and for our input. I think so I I'm glad to report I do see that our efforts didn't go wasted. Actually it is paying off. It is paying off. I'm glad you know they do get recognized.
As I tell my team, every project we finish, we leave reputation behind us, right? Whether that's good or bad, and that's what we need to work on. Exactly, that's why we need to have the customer-centric view, and we need to, you know, to do everything to make sure our quality is good and all that. We just have to be consistent, and then we have to do it, you know, consistently and then, you know, raise our bar.
Got it. Just one last question from me. The 2022 guidance, do you have any target for the New Economy revenue contribution?
We expect it to still have double-digit growth. Now, in terms of, because as you see, like, okay, so we are looking at about close to 19%, 19% in terms of, you know, accounts for our total. 19% of the total revenue. But of course, you know, this is a relative thing, so I like my, you know, total revenue is like exceeded my target. Even if this is a little bit smaller, I'm okay with that. If we use our current forecast, and then it's about 18.9%. We will grow from last year's 17.2%-18.9%.
Got it. Very clear. Thank you.
Okay.
Thank you. We are now in question and answer session. If you would like to ask a question, please press zero one on your telephone keypad. Thank you. Please press zero one on your telephone keypad if you would like to ask a question. Thank you.
Even if you have some questions later that you could think of, Gary and Amy in our IR team is always available for your questions. If you need to engage me, Gary Lai can arrange.
Yes. Thank you, President Chee. There are currently no questions at this point. I'll pass the call back to Mr. Gary Lai. Gary, please proceed. Thank you.
Okay. Thank you. Okay. We want to end our conference call. See you next call. Bye-bye.
Thank you.
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