Taiwan-based Shin Kong Financial Group plans to cooperate with KDDI for joint investment in Asia Pacific Broadband Telecom, a fixed-line/3G mobile telecommunication operator in Taiwan, to become the largest shareholder, according to this post on DigiTimes. Both KDDI and APBT adopt CDMA2000 for their 3G operation, a reason for Shin Kong to invite KDDI to jointly invest, the sources noted.
Shin Kong’s motivation of investment is to step into the telecommunication business, the sources indicated. Shin Kong has acquired a 19.3% stake in First International Telecom (Fitel), the only operator of low-power PHS mobile communication services and a WiMAX licensee in Taiwan, and will add investment to become the largest shareholder of Fitel, the sources pointed out.
In addition, because KDDI used to operate PHS and set up a joint venture with Intel to win a WiMAX license in Japan at the end of 2007, Shin Kong plans to eventually integrate APBT’s business operation with Fitel’s or even combine the two companies through a merger, the sources pointed out.