Light Reading
iPhone maker Foxconn is paying $390M for a stake in Asia Pacific Telecom.

Foxconn Buys Stake in 4G Mobile Operator

Dan Jones
5/27/2014
50%
50%

Taiwan's Foxconn -- the manufacturer of Apple's iPhone -- is acquiring a US$390 million stake in domestic mobile operator Asia Pacific Telecom, according to local news reports.

Foxconn Electronics Inc. , which trades on the Taiwan stock market under the name Hon Hai Precision Industry Co Ltd, will pay NT$20 a share for 582.9 million shares in Asia Pacific Telecom Group . The Star Online reports that the deal values a 15 percent stake in the operator at NT$11.6 billion (US$390 million).

Foxconn is expected to try for a full merger with the operator through a future share swap.

The deal gives Foxconn a stake in the emerging Taiwanese 4G mobile market: Asia Pacific Telecom is Taiwan's fourth largest mobile operator, and has about 2.1 million customers. (See APAC Fuels 4G Action.)

— Dan Jones, Mobile Editor, Light Reading

(10)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
pcharles09
50%
50%
pcharles09,
User Rank: Light Beer
5/29/2014 | 9:03:06 PM
Re: So where really is the synergy here?
R Clark,

Diversifying is the word I was looking for here. That's always the name of the game when you've already cornered one aspect of a market.
pcharles09
50%
50%
pcharles09,
User Rank: Light Beer
5/29/2014 | 9:01:47 PM
Re: So where really is the synergy here?
Previously replied to below...
pcharles09
50%
50%
pcharles09,
User Rank: Light Beer
5/29/2014 | 9:01:21 PM
Re: So where really is the synergy here?
I'm looking at it more from a business opportunity perspective of the ownership, not the end users.
R Clark
50%
50%
R Clark,
User Rank: Blogger
5/27/2014 | 11:18:00 PM
Re: So where really is the synergy here?
Foxconn/Hon Hai is an electronics contract manufacturer, so it doesn't compete directly with operators.

This is all about diversifying away from manufacturing. Hon Hai is also tipping money into cloud and software apps and is even making some of its own-branded accessories like headphones.
nasimson
50%
50%
nasimson,
User Rank: Light Sabre
5/27/2014 | 11:08:37 PM
Re: So where really is the synergy here?
@pcharles: What kind of tie ins are you referring to here? For the common cellphone-plan tie ins, you don't need an ownership stake.
nasimson
50%
50%
nasimson,
User Rank: Light Sabre
5/27/2014 | 11:08:13 PM
Re: So where really is the synergy here?
@pcharles: What kind of tie ins are you referring to here? For the common cellphone-plan tie ins, you don't need an ownership stake.
pcharles09
50%
50%
pcharles09,
User Rank: Light Beer
5/27/2014 | 7:59:01 PM
Re: So where really is the synergy here?
They'll have more tie-in into the industry by being aligned with the providers as well as the manufacturing.
sam masud
50%
50%
sam masud,
User Rank: Light Sabre
5/27/2014 | 3:39:10 PM
Re: So where really is the synergy here?
It's more than a device manufacturer--Foxconn is a major bare metal box maker.
DanJones
50%
50%
DanJones,
User Rank: Blogger
5/27/2014 | 2:19:29 PM
Re: So where really is the synergy here?
Well, Foxconn is the largest electronics manufacturer in the world and the 3rd largest IT company they are widely known for making iPhones but that's not all they make. It's not something I've seen before, for sure.
nasimson
50%
50%
nasimson,
User Rank: Light Sabre
5/27/2014 | 12:30:26 PM
So where really is the synergy here?
@ Dan:

If my memory serves me right, I have never heard of a device manufacturer buying stakes in the mobile operator.

What exactly are the synergies here? Am I missing something?
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
The New Wave of IP + Optical Integration

11|21|14   |   04:29   |   (7) comments


At the Alcatel-Lucent Technology Symposium, Heavy Reading senior analyst Sterling Perrin talks about how SDN has reshaped the discussion around packet and optical integration.
LRTV Huawei Video Resource Center
Huawei Highlights at BBWF 2014

11|20|14   |   3:40   |   (1) comment


Broadband World Forum is one of the world's largest telecoms, media and technology events with over 7,800 senior executives from across the globe converging on Amsterdam every year to identify the Next Big Thing. BBWF is an exciting place to meet the entire industry under one roof and identify the latest in network innovation, service optimization and customer ...
LRTV Huawei Video Resource Center
How Will BCMS Stimulate Margin for Broadband Operators?

11|19|14   |   6:52   |   (0) comments


In BBWF 2014, Liu Shuqing emphasizes the value of FMC 2.0 based full service experience by throwing light on the BCMS solution. The underlying principle of this innovative technique is to create network robustness and driving network from connection oriented to ACE – BAND oriented infrastructure, in which applications, cloud, and user experiences will be an asset ...
LRTV Huawei Video Resource Center
SingleFAN3.0: Better Connected Experience

11|19|14   |   3:06   |   (1) comment


At the BBWF 2014, David Hu, the VP of Huawei Access Network Product Line, talked about the future of access networks – SingleFAN3.0: faster broadband, wider coverage, and smarter connection.
LRTV Interviews
Basil Alwan Interview: The Road to Cloud

11|19|14   |   09:09   |   (0) comments


Alcatel-Lucent's head of IP and Transport talks about the migration towards a web-like networking environment, the impact of the cloud, SDN and NFV, and the yet-to-be-announced FP4 chip.
LRTV Documentaries
FairPoint Makes a Fair Point About Analytics

11|19|14   |   1:56   |   (1) comment


The US-based communication service provider gets to grips with advanced analytics, tackling data and breaking down the silos within its own business.
LRTV Documentaries
Analytics Lets C Spire Get to Know Subs

11|19|14   |   3:01   |   (2) comments


It's all about the data for US operator C Spire as it uses analytics to personalize its customer service down to individual subscribers.
LRTV Interviews
Nuage Branches Out With SDN: CEO Interview

11|17|14   |   9:32   |   (0) comments


Sunil Khandekar, CEO of Alcatel-Lucent's SDN-focused unit Nuage Networks, talks about the opportunities and challenges of breaking out of the data center into wide-area networks.
Light Reedy
Telecom Analytics Grows Up

11|14|14   |   1:15   |   (4) comments


The big data analytics debate has moved on from a year ago, with some experts suggesting it's no longer a technology challenge.
LRTV Huawei Video Resource Center
Huawei Compass

11|14|14   |   3:17   |   (1) comment


At OpenStack Summit 2014, Shuo Yang, Huawei Principal Cloud Infrastructure Architect introduced Huawei Compass, the software tool for solving customers' problems on the journey of OpenStack Cloud.
LRTV Huawei Video Resource Center
Huawei's Cloud Strategy in European Region

11|14|14   |   2:56   |   (1) comment


At OpenStack Summit 2014, Dr. Gotz, CTO of Huawei IT in European Region introduced Huawei's cloud strategy in European region.
LRTV Huawei Video Resource Center
Huawei's Contribution on OpenStack

11|14|14   |   5:58   |   (0) comments


At OpenStack Summit 2014, Dennis Gu, Huawei Chief Architect of Cloud Computing introduced the relationship between OpenStack and cloud computing, and Huawei's contribution on OpenStack.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 12, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Bell Labs Chief Slams 'Toy' Networks
Robert Clark, 11/19/2014
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
The New Wave of IP + Optical Integration
Ray Le Maistre, Editor-in-chief, 11/21/2014
Google, AT&T, BT Unite on Network Data Models
Carol Wilson, Editor-at-large, 11/20/2014
Like Us on Facebook
Twitter Feed