Far EasTone Telecommunications (FET), one of the three largest mobile telecom carriers in Taiwan, on April 18 signed a strategic cooperation framework agreement with China Mobile, the largest mobile telecom carrier in China, to enhance existing cooperation, according to FET.
The framework agreement replaces a strategic cooperation agreement signed in April 2009 for China Mobile to acquire a 12% stake in FET through subscribing to 444 million FET shares at NT$40 (US$1.34) per share as well as both companies to establish a joint venture in China, FET said. Since Taiwan regulations have not yet allowed investment from China in telecom businesses with infrastructure, the planned stock acquisition by China Mobile was unable to be realized, FET indicated. Therefore, the agreement signed in April 2009 will be terminated when it expires on June 12, 2013, FET noted. However, both companies will negotiate a new stock acquisition if Taiwan regulations change, FET stressed.
The framework agreement is to continue cooperation between FET and China Mobile in a boarder scope than previously, covering data communications, cloud computing, the Internet of Things, intelligent transportation and retail, FET said.
Article translated by Adam Hwang
