Far EasTone Telecommunications announced that it will cooperate with Asia Pacific Telecom on sharing its 3.5G frequency band (80MHz bandwidth), and Asia Pacific Telecom will share approximately two-ninths of the cost of Far EasTone's 3.5G frequency band. It is expected to pay NT$94.73 billion in spectrum fees, thereby obtaining the right to use approximately two-ninths of Far EasTone Telecommunications' 20G frequency band network capacity for up to 3.5 years.
Since Asia Pacific Telecom previously only obtained the 28Ghz frequency band and did not obtain the mainstream 3.5GHz frequency band resources, it announced a frequency and network sharing cooperation with Far EasTone Telecommunications to obtain the right to use approximately two-ninths of Far EasTone Telecommunications' 3.5G frequency band network capacity.
After obtaining legal approval for their frequency and network co-operation, Far EasTone Telecommunications will initially invest NT$50 billion in Asia Pacific Telecom. The two parties also agreed to issue new shares in exchange for Foxconn's stake in Asia Pacific Telecom before June 2022, 6. Upon completion of the transaction, Far EasTone Telecommunications and Foxconn will each hold a 30% stake in Asia Pacific Telecom.
Far EasTone Telecommunications General Manager Jing Qi said, "Far EasTone has maintained an open attitude since the NCC formulated the 5G frequency sharing and network sharing policy. The 5G spectrum Far EasTone has secured is advantageous enough to support its industry peer, Asia Pacific Telecom, while still maintaining the highest quality 5G bandwidth for individual users among the three major telecom operators. Through cost sharing with Asia Pacific Telecom, Far EasTone will be able to improve spectrum efficiency and reduce network costs, allowing it to invest in developing more 5G services and providing a better 5G network experience. Consumers will be the biggest winners. Far EasTone is pleased to partner with Asia Pacific Telecom based on the principles of integrity, mutual benefit, win-win cooperation, and compliance with the law. We believe this collaboration will be a significant milestone in Taiwan's telecommunications history."
Huang Nanren, General Manager of Asia Pacific Telecom, said, "This collaboration conveys two important implications. First, in response to the development of 5G, by combining the network resources of the two telecom companies through shared frequency and network, we will accelerate 5G network construction and provide consumers with better 5G network services. Driven by favorable factors such as open government regulations, compliance with international technical standards, and the potential to improve network efficiency, we expect shared frequency and network to become a new trend and trend in 5G. Second, both parties, supported by the same high-speed 5G network, will continue to invest their respective resources in developing diversified value-added 5G applications and vertical smart applications. This will drive telecom operators' transformation from simply providing telecommunications services to diversified information and communications service providers, creating greater corporate value."
Through this strategic partnership, Asia Pacific Telecom will provide users with upgraded and more competitive 5G network services. It expects to use the 3.5GHz frequency band obtained through the shared frequency and network cooperation as the primary frequency band for its 5G network services, and to use it in conjunction with its own 28GHz frequency band for corresponding vertical fields or specific application services.
