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Hon Hai shifts 4G strategy to support Asia Pacific
Taiwan News, Staff Writer
2014-07-14 01:38 PM

Hon Hai (2317) has made a significant change to its 4G strategy. Subsidiary Ambit Microsystems will not offer 4G service. Instead, all of Ambit’s resources will be mobilized in support of Asia Pacific Telecom (3682). With full support from Hon Hai, Asia Pacific’s low frequency (700 to 900MHz) 4G frequency band and spectrum advantages will be a match for FarEasTone (4904) and Taiwan Mobile (3045) and may even threaten industry leader Chunghwa Telecom (2412).

Ambit spent NT$9.18 billion to obtain 4G frequency spectrum and since regulations stipulate services must begin within six months of licensing, the market originally expected Ambit to begin offering 4G service before the completion of its merger with Asia Pacific.

It has been learned that Ambit management recently modified the company’s 4G strategy. Ambit will no longer introduce its own 4G brand but, instead, allocate all its resources to Asia Pacific. In other words, Taiwan’s 4G landscape will shrink from six service providers to five. Ambit declined to respond to the rumors.

Hon Hai vice president Lu Fang-ming will soon take the helm as chairman of Asia Pacific to accelerate the merger process. It has been reported that, the effective date of the Ambit Asia Pacific merger has been moved forward from the middle of next year to Q1 2015 to allow Asia Pacific to begin 4G service in the first quarter of next year.

After Lu assumes the post of Asia Pacific chairman, he will actively promote base station construction, backbone network, terminal equipment, and distribution channel restructuring. Asia Pacific estimates coverage of over 90% once 4G service begins.

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