Hon Hai looking for technological partners for 4G

By Lisa Wang  /  Staff reporter, In GREATER KAOHSIUNG

Fri, Nov 01, 2013 - Page 13

Hon Hai Precision Industry Co (鴻海精密) yesterday said it is seeking strategic partners to offer 4G services after winning a spectrum license on Wednesday.

The company, which won a 20 megahertz bandwidth for NT$9.18 billion (US$311.7 million) via its 100 percent-owned Ambit Microsystems Corp (國碁), consider 4G investment a critical element to its effort to move beyond hardware manufacturing.

It is also developing software, operating systems and cloud-computing-based services, such as long-distance surveillance and medical care, to be delivered on the high-speed network.

Hon Hai chairman Terry Gou (郭台銘) said the company is aiming to provide data-oriented and value-added services, including video transmission and mobile games, through its 4G network in the future.

To facilitate its 4G services, Hon Hai plans to upgrade its software development center in Greater Kaohsiung into a digital convergence center, Gou said.

Hon Hai is expected to finish construction of three cloud-computing data centers in Greater Kaohsiung by the end of this year and to start a research and development center there in 2015.

However, the company is in no rush to seek partners for its 4G business, he said.

“We will seek strategic partners, who can give us real technological help,” he said. “We will also look for internal partners [telecom operators] to offer roaming services in the future.”

Gou also urged the government to offer a level playing field for all players by separating Chunghwa Telecom Co’s (中華電信) fixed-line business from its mobile business. Instead, the government can allocate the fixed-line network for the use of the public or provide it to other telecom operators at a low cost, he said.

Separately, Hon Hai plans to issue 350 million restricted shares to employees in the coming year as an incentive to stay with the company, Gou said, adding that the company plans to raise salaries starting next month.