Tue, Jun 25, 2013 - Page 13 News List

Hon Hai, Far Eastern executives meet

By Amy Su  /  Staff reporter

A meeting between Hon Hai Precision Industry Co (鴻海精密) chairman Terry Gou (郭台銘) and Far Eastern Group (遠東集團) chairman Douglas Hsu (徐旭東) yesterday sparked speculation that the two might be considering joining forces on bidding for a 4G telecom license.

Hsu disclosed that he would “take a cup of coffee” with Gou in the afternoon during the annual shareholders’ meeting of U-Ming Marine Transport Corp (裕民航運) — a member of the Far Eastern Group.

He refused to comment when asked if they would be talking about “4G,” but said he would share with Gou his experience and tell him that entering the telecom business is “hard work” that needs a large amount of investment.

The meeting sparked speculation of a cooperation between the two groups amid market talk that Hon Hai, the world’s largest contract electronics maker, and Far EasTone Telecommunications Co Ltd (遠傳電信), a member of the Far Eastern Group, would both tender bids for a 4G license.

On Monday last week, Hon Hai and Chunghwa Telecom Co (中華電信), the nation’s largest telecom operator, asked for two sets of application documents for 4G licenses from the National Communications Commission.

With two application forms, a company can apply to operate a 4G network and to invest in another network operator, the commission said.

Hon Hai is scheduled to hold its shareholders’ meeting tomorrow, and expectations are high that it will release more information about its interest in the 4G business.

A list of companies eligible to bid for 4G licenses will be released at the end of August, the commission said.

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