On Wednesday, the National Communications Commission of Taiwan announced that six companies including Hon Hai had paid a combined TWD118.65 billion or USD4.03 billion in the hopes of seizing twelve domestic fourth-generation (4G) mobile spectrum licenses in the high-margin industry. The amount is triple than that of the original offer price.
Hon Hai Precision Industry, one of the world's largest electronics assemblers, had won two mobile spectrum licenses. Hon Hai had paid TWD9.18 billion for the said 4G mobile spectrum licenses in the lower 900MHz and 700MHz bands which were at a quality of 13 percent and 48 percent respectively.
Aaron Chen, the fund manager of Capital Securities Investment Trust in Taipei stated, "Winning the 4G licenses is a good way for Hon Hai to diversify its business as the profit margin is much better than its current businesses. Ultimately, whether or not it will succeed depends on if it can expand into the Chinese market and other overseas markets."
Winners of the 4G mobile spectrum licenses include Taiwan Mobile Co Ltd, Asia Pacific Telecom Co, Far Eastone Telecommunications Co Ltd, a company backed by Ting Hsin International Group and the Chunghwa Telecom Co Ltd.
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