Talking 4G, Rick Tsai: Competition and Cooperation with Hon Hai

Chunghwa Telecom Chairman Rick Tsai said in a radio interview yesterday that with rival Hon Hai there will not only be competition but also cooperation, possibly on hardware, equipment and other aspects.

Rick Tsai gave an exclusive interview to Hit Fm "Coco Breakfast" host Zhou Yuko, with topics centering on 4G-related issues, including consumer rights after Chunghwa Telecom's 4G launch, and how Chunghwa Telecom will take on competitor Hon Hai.

New 4G entrant Hon Hai has come on strong, not only poaching former Chunghwa Telecom Chairman Lu Xuejin but also planning a major recruitment drive. Rick Tsai believes that whether in the past semiconductor industry or the current telecom industry, competition is the norm; Chunghwa Telecom has good strategy and execution, will respond calmly, and has no reason to panic.

Rick Tsai pointed out that competition in the 4G market is fierce, and since the Taiwan market is not considered large, pressure will of course increase, but there has always been both competition and cooperation among companies; he hopes to find opportunities for cooperation with Hon Hai Chairman Terry Gou, and ultimately both sides hope to provide the best possible service to the country and society.

He added that "with competitors you will always run into each other and chat a bit," and it was not convenient to disclose the details of their conversations publicly; he believes both Chunghwa Telecom and Terry Gou are seeking profit on the basis of their strengths, and cooperation between the two sides may be on hardware, equipment and other aspects.

Rick Tsai said South Korea is already 2 years ahead of Taiwan, and both the United States and Japan have 4G; Taiwan is racing to catch up, Chunghwa Telecom is actively positioning itself in 4G, has plans for LTE Advanced and 5G, and will have a close cooperative relationship with the supply chain.