& cplSiteName &

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        ADD A COMMENT
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?
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, July 27, 1:00PM EDT
The Changing Face of the Data Center World
Rodney M. Elder, Senior Solutions Architect, Equinix
UPCOMING COURSE SCHEDULE
Wednesday, August 3, 1:00PM EDT
The Central Office Re-Architected as a Data Center
Guru Parulkar, Executive Director, Open Networking Research Center, Open Networking Lab
Wednesday, August 10, 1:00PM EDT
Telcos & Open Source 101
Phil Robb, Senior Technical Director, OpenDaylight
Friday, August 12, 1:00PM EDT
The Role of Open Source in NFV
Jim Fagan, Director, Cloud Practice, Telstra
in association with:
From The Founder
The more things change, the more they stay the same for Juniper's next-gen comms solutions, and that's a good thing.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (0) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Telecom Innovators Video Showcase
Versa Networks' Kumar Mehta on SD-WAN Managed Services

7|19|16   |     |   (0) comments


In Silicon Valley, Steve Saunders sits down with Versa's Kumar Mehta for an interview focused on why service providers are building SD-WAN managed services, and how Versa's telco customers are innovating.
LRTV Custom TV
Juniper Networks & The Evolution of NFV

7|19|16   |   06:01   |   (0) comments


Senior Juniper Networks executives talk to Light Reading Founder & CEO Steve Saunders about NFV developments and the recent independent evaluation by test lab EANTC of Juniper's Cloud CPE solution.
LRTV Interviews
CenturyLink Goes Beyond Managed WiFi

7|19|16   |     |   (0) comments


CenturyLink's managed WiFi allows enterprises, such as retailers and resorts, to track guest WiFi usage in order to help them better communicate with customers.
LRTV Interviews
AT&T Launches Network Functions on Demand

7|17|16   |   05:26   |   (0) comments


Roman Pacewicz, Senior Vice President, Offer Management & Service Integration, AT&T Business Solutions, discusses the operator's launch of its Network Functions on Demand service.
LRTV Interviews
Enterprise Pitch for Ciscosson

7|14|16   |   04:43   |   (0) comments


After seven months of near silence, Cisco and Ericsson executives publicly discussed details on their extensive partnership. Among the tidbits shared by Martin Zander, VP, group strategy programs, Ericsson, and Doug Webster, VP service provider marketing, Cisco: The partnership was initially launched to serve the service provider market, but is already gaining ...
Wagner’s Ring
Cisco Faces Up to Hypercloud Threat

7|13|16   |   02:42   |   (0) comments


Facebook, Amazon and Google mostly don't buy branded technology for their networks – they build their own. That's a threat to Cisco – and its competitors too – which face potentially dwindling demand for their product. Is Cisco up to the challenge? Light Reading went to the annual Cisco Live conference to find out.
LRTV Huawei Video Resource Center
Building a Better Connected Russia

7|13|16   |     |   (0) comments


At UBBS World Tour 2016, Alla Shabelnikova of Ovum shares the findings of a white paper outlining the challenges and opportunities of broadband rollout in Russia.
LRTV Huawei Video Resource Center
The Global Video Business

7|13|16   |     |   (0) comments


At UBBS World Tour 2016, Roger Feng of Huawei shares insights on the future of video business.
LRTV Huawei Video Resource Center
UBBS World Tour Moscow Highlights

7|13|16   |     |   (0) comments


At UBBS World Tour 2016 at Moscow, Huawei showcases its outstanding progress in video technology.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
September 27, 2016, Philadelphia, PA
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 6-8, 2016,
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
SoftBank Muscles In on ARM in $32B Deal
Iain Morris, News Editor, 7/18/2016
Ericsson 'Doubles' Savings Goal as Sales Slump
Iain Morris, News Editor, 7/19/2016
Kevin Lo's Move to Facebook: Sign of Things to Come?
Patrick Donegan, Chief Analyst, Heavy Reading, 7/20/2016
Is Dish Going Down the Drain?
Alan Breznick, Cable/Video Practice Leader, Light Reading, 7/21/2016
Facebook Gets Its Drone On
Ray Le Maistre, Editor-in-chief, 7/22/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
I've enjoyed interviewing many interesting people since I rejoined Light Reading, but William A. "Bill" Owens certainly takes the biscuit, as we say where I come from.
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.