Far EasTone Telecommunications Co (遠傳電信) yesterday said it aims to expand its number of mobile subscribers to about 10 million, or about one-third of the market, as part of its strategy in a new competitive landscape following market consolidation.
Far EasTone made the remarks after last month receiving conditional approval from the Fair Trade Commission to acquire Asia Pacific Telecom Co (亞太電信), clearing the final hurdle to proceed with the deal. The transaction is to take effect next quarter.
“The number of telecoms will shrink following the merger of Far EasTone and Asia Pacific, but the market competition will intensify,” Far EasTone chairman Douglas Hsu (徐旭東) told reporters.
Photo: CNA
Far EasTone would be competing head-to-head with its rivals, which have almost identical subscriber bases, following the acquisition of Asia Pacific, company president Chee Ching (井琪) said.
The new entity would have a combined 9.2 million mobile subscribers, lagging behind Chunghwa Telecom Co’s (中華電信) 11.15 million, but ahead of an estimated 9.8 million for Taiwan Mobile Co (台灣大哥大) after it acquires Taiwan Star Telecom Corp (台灣之星).
The nation’s competition watchdog is widely expected to give the go-ahead later this month at the earliest to Taiwan Mobile’s bid to absorb Taiwan Star after wrapping up a 30-day review.
As a result, the number of telecoms in Taiwan would shrink to three from five.
Far EasTone said that more than 36 percent, or about 2 million, of its post-paid subscribers, not including Asia Pacific’s, are 5G users.
To woo more mobile subscribers from rivals, Far EasTone yesterday rolled out new service plans with affordable monthly rates from NT$149 to NT$399 (US$4.66 to US$12.48) and heavy subsidies for smartphones and home appliances.
The new service plans target 4G users and their potential to upgrade to 5G service.
One of its promotions for new 5G service subscribers is a free Samsung smartphone and a rice cooker for a minimum 12-month subscription plan at NT$599 per month plus a NT$1 fee.
Far EasTone expects to complete the network integration with Asia Pacific within one month after it takes effect.
The company would operate 12,500 base stations nationwide as a result of infrastructure optimization, it estimated.
The telecom said it does not expect the merger to incur significant increases in capital spending due to base station additions.
It has budgeted NT$9 billion for this year’s capital expenditure, down from an outlay of NT$9.9 billion last year.
Far EasTone expects the merger to significantly increase its spectrum resource, especially in the low-band bandwidth, or lower-than 1-gigahertz band, which is considered the most efficient band.
Far EasTone would operate 50 megahertz of bandwidth, up 66 percent.
The company’s 5G bandwidth would also rise 50 percent to 120 megahertz.
PATENTS: MediaTek Inc said it would not comment on ongoing legal cases, but does not expect the legal action by Huawei to affect its business operations Smartphone integrated chips designer MediaTek Inc (聯發科) on Friday said that a lawsuit filed by Chinese smartphone brand Huawei Technologies Co (華為) over alleged patent infringements would have little impact on its operations. In an announcement posted on the Taiwan Stock Exchange, MediaTek said that it would not comment on an ongoing legal case. However, the company said that Huawei’s legal action would have little impact on its operations. MediaTek’s statement came after China-based PRIP Research said on Thursday that Huawei filed a lawsuit with a Chinese district court claiming that MediaTek infringed on its patents. The infringement mentioned in the lawsuit likely involved
Taipei is today suspending work, classes and its US$2.4 trillion stock market as Typhoon Gaemi approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed income trading, statements from its stock and currency exchanges said. Authorities had yesterday issued a warning that the storm could affect people on land and canceled some ship crossings and domestic flights. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) expects its local chipmaking fabs to maintain normal production, the company said in an e-mailed statement. The main chipmaker for Apple Inc and Nvidia Corp said it has activated routine typhoon alert
GROWTH: TSMC increased its projected revenue growth for this year to more than 25 percent, citing stronger-than-expected demand for AI devices and smartphones The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday raised its forecast for Taiwan’s GDP growth this year from 3.29 percent to 3.85 percent, as exports and private investment recovered faster than it predicted three months ago. The Taipei-based think tank also expects that Taiwan would see a 8.19 percent increase in exports this year, better than the 7.55 percent it projected in April, as US technology giants spent more money on artificial intelligence (AI) infrastructure and development. “There will be more AI servers going forward, but it remains to be seen if the momentum would extend to personal computers, smartphones and
Catastrophic computer outages caused by a software update from one company have once again exposed the dangers of global technological dependence on a handful of players, experts said on Friday. A flawed update sent out by the little-known security firm CrowdStrike Holdings Inc brought airlines, TV stations and myriad other aspects of daily life to a standstill. The outages affected companies or individuals that use CrowdStrike on the Microsoft Inc’s Windows platform. When they applied the update, the incompatible software crashed computers into a frozen state known as the “blue screen of death.” “Today CrowdStrike has become a household name, but not in