Hon Hai denies reports of Vibo Telecom 4G deals
CNATAIPEI--Taiwan's Hon Hai Precision Industry Co. (鴻海精密), the world's largest contract electronics manufacturer, denied a report Tuesday that the company has signed a deal with mobile operator Vibo Telecom Inc. (威寶電信) on 4G cooperation.
October 23, 2013, 12:08 am TWN
Hoping to gain a foothold in the 4G telecom business in Taiwan, Hon Hai has sent a team of employees to work at Vibo and signed a contract to acquire the loss-making operator if Hon Hai's bid for a 4G license succeeds, the Liberty Times reported Tuesday, citing industry sources.
Hon Hai hopes to use the acquisition to shorten the time it will need to build 4G base stations and expand retail coverage of the InFocus-branded phones that are assembled by Hon Hai, the newspaper said.
Vibo, whose biggest shareholder is Taiwanese contractor Compal Electronics Inc. (仁寶電腦), has about 1.8 million subscribers and 6,700 base stations, the report said.
Hon Hai responded in an emailed statement that it has not signed any contracts with Vibo or taken any actions to acquire the Taiwanese carrier, including sending a team to work at Vibo.
Vibo also denied the reported moves by Hon Hai but said it was “open to all kinds of cooperation.”
Hon Hai unit Ambit Microsystems Corp. (國碁電子) is one of six contenders (and one of two potential new entrants) still participating in the bidding for Taiwan's 4G spectrum that started in early September.