Foxconn, original manufacturer to today’s hottest selling gadgets including the iPhone, could be looking to become a wireless network of recent reports are accurate.
Sina Tech Report, is reporting that Foxconn which is also known by its corporate name Hon Hai Precision Industry Co, is currently mulling a bid to purchase a huge swath of 4G wireless spectrum in Taiwan. That wireless spectrum would allow the company to possibly sell wireless calling and data services to users across the Taiwan.
Allegedly, the move to providing services is part of a wider company strategy aimed at obtaining revenue by focusing on all of the mobile device industry. For example, the Foxconn of today only focuses on building the designs of others, however the Foxconn of tomorrow could make money by building those devices from companies, and making even more money when users need to get wireless services for those same devices.
Sina Tech Report, indicates that the company plans to diversify its businesses by cooperating with large firms as well. The publication cites sources who believe that Terry Gou, Foxconn’s chairman, has already began talks with the Ruentex Group for a partnership in the 4G wireless data market.
Regulators in Taiwan recently imposed rules that require any 4G operator who’s bidding on the 4G wireless spectrum to have a total market capital value of at least $5 billion, however as neither Foxconn nor Ruentex currently do, a partnership would be the only way either could bid for the spectrum.
It’s rumored that the company has already begun recruiting top talent in the telecom and cable sectors as well.
A switch into providing services would be a huge evolution for Foxconn, its currently most known to users in the United States as the manufacturer of iPhones that faced a backlash early last year after public radio program, This American Life aired an expose’ about how the company housed, abused, and mistreated workers at one of its plants in China.
Those reports turned out to be mostly fabricated, by a guest on the program, Mike Daisey, and the program pulled the episode from circulation. However, by the time the program had been retracted the manufacturing process for Apple’s iPhone and iPad had already been called into question, prompting Apple CEO Tim Cook to inspect the factories of the company’s Apple contracts it’s manufacturing to himself.