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Foxconn Drops Huawei to Secure 4G License

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Taiwan's Foxconn has been awarded a 4G license by the Taiwan regulator, but only after it dropped plans to award the network rollout contract to China's Huawei.

Foxconn's subsidiary company, Ambit had bid for the 4G license, but the formal handover of the license was being held up by the regulator due to concerns about the involvement of Huawei in the tender contract.

Existing mobile network operator, Asia Pacific Telecom, which merged with Ambit last month, also secured the necessary network construction permits.

The mobile networks was the last of the six bidders to be formally handed its 4G license.

The move had lead to vocal complaints from Foxconn's Chairman, Terry Gou who even threatened to move the company headquarters out of the country if he couldn't use Huawei to supply the network.

His bluff appears to have been called though, as the company has backed down over the threat. Foxconn is particularly sensitive to the issue as the bulk of its operations are in China, and its public comments in support of a Chinese vendor would have done the company a lot of favours with that government.

It's not clear yet who will replace Huawei as the infrastructure supplier.

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Tags: huawei  foxconn  Taiwan