FET and APT's Merger Takes Effective Tomorrow

Far EasTone Telecommunications (FET, 4904.TW) officially completed its merger with Asia Pacific Telecom (APT, 3682.TW) on December 15, as announced by FET Chairman Hsu. Acknowledging the highly competitive nature of the telecommunications industry, Chairman Hsu expressed that the merger process was challenging. However, he emphasized the unity among Far EasTone colleagues, stating their commitment to achieving the mission of the merged entity. Far EasTone approached every aspect of the merger with rigorous specifications, including communication and mediation with regulatory authorities, network integration planning, considerations for user rights, IT systems, and the placement of APT employees. This meticulous approach enabled the successful completion of the merger. In the current landscape, the three major telecom giants have established their distinct scales. Chairman Hsu and his team are optimistic about the future, foreseeing a telecommunications industry characterized by healthy competition, innovation, and the provision of value-oriented, high-quality services. The aim is to contribute to the overall sound development of the industry, benefiting not only the industry players but also consumers, shareholders, and the environment. The emphasis on collaborative efforts underscores their commitment to a positive and mutually beneficial future for the telecom sector.

Far EasTone highlighted the significant journey undertaken since announcing its merger plan with Asia Pacific Telecom (APT) on February 25 of the previous year. The merger involved a thorough and extensive approval process spanning one year and nine months. This included approvals from the National Communications Commission (NCC), the Fair Trade Commission, the stock exchange, and the subsequent delisting of APT. With the completion of these regulatory and procedural steps, Far EasTone stated that Taiwan's telecommunications industry has entered a new phase. The industry is now poised to embrace healthy competition characterized by a "value orientation." This strategic direction aims to stimulate innovative services and contribute to the overall sound development of the telecom sector. The focus on value-oriented competition signals a commitment to providing enhanced services and value to consumers, fostering innovation, and contributing positively to the evolution of the telecommunications landscape in Taiwan.

Far EasTone has underscored the commencement of a new era in the telecommunications industry, placing a significant emphasis on network quality as the primary battleground. Following the merger with APT, Far EasTone now boasts the largest total bandwidth, the largest low-frequency continuous bandwidth, and the largest 5G bandwidth among the three major telecom companies in Taiwan. This impressive spectrum portfolio has earned Far EasTone the title of the "Triple Champion of Spectrum." The average bandwidth for users of the newly merged entity, New Far EasTone, claims the top spot in the telecommunications industry. This leadership in bandwidth translates to substantial upgrades in both network speed and coverage. Importantly, Far EasTone emphasizes its commitment to providing customers with an enhanced experience, promoting a "increasing bandwidth and volume without increasing the price" approach. In this context, New Far EasTone users are positioned as the primary beneficiaries of these network enhancements. For original APT users transitioning to Far EasTone tariffs and SIM cards, the consolidation of base stations in each area brings about a notable improvement. With nearly twice the base station coverage compared to the original APT, customers can anticipate an enhanced network experience, further solidifying their status as winners in this evolving telecommunications landscape.

Far EasTone President Chee Jing has taken a proactive approach in communicating with both original APT users and existing Far EasTone users, addressing potential concerns following the merger of FET and APT. Personalized letters were crafted to ensure clear communication about any challenges that users may encounter post-merger. Furthermore, President Chee Jing conducted a staff meeting to personally explain the future trajectory to colleagues from APT, ensuring transparency and clarity about their roles and the organization's direction, and FET employees are encouraged to extend a warm welcome to their new colleagues. To facilitate communication, an online Q&A session has been initiated, allowing employees to seek clarification and engage in a transparent exchange of information. This commitment to open communication reflects Far EasTone's dedication to ensuring a smooth transition and fostering a positive and collaborative working environment for all employees involved in the merger.

Chee expressed gratitude for the full support of the chairman, the approval of the competent authorities, and the collective efforts of the core team over the past 20 months. He announced Far EasTone's satisfaction with the successful completion of the merger, heralding a new phase of accelerated and sustainable development in the telecommunications industry. Anticipating key milestones, Far EasTone aims to conclude the first phase of base station consolidation by the end of January next year. This strategic move is expected to result in nearly doubling the network coverage (receiving area) for original APT users. Simultaneously, original Far EasTone users are poised to reap benefits from the expanded spectrum portfolio achieved through the merger, referred to as the "Triple Champion of Spectrum." Far EasTone's commitment to innovation is evident in maintaining the highest 5G penetration rate in the new era of telecommunications. The company is dedicated to creating differentiated advantages, constructing a secure and environmentally friendly high-quality network, and positioning Far EasTone as the preferred choice for an increasing number of consumers. This vision aligns with the goal of delivering superior telecommunications services and enhancing the overall customer experience.

Following the merger, the newly formed Far EasTone boasts the largest total bandwidth, totaling 980MHz (4G+5G). as well as a substantial 700MHz continuous low-frequency spectrum below 1GHz, particularly beneficial for indoor reception, making it the leader in low-frequency continuous bandwidth. Additionally, Far EasTone holds a 5G bandwidth advantage with 120MHz, the maximum available bandwidth for 5G. As part of its ongoing efforts to enhance network infrastructure, Far EasTone is actively consolidating base stations, with plans to replace 5,000 stations. Simultaneously, the company prioritizes energy efficiency and carbon reduction initiatives. The introduction of AI power-saving technology and energy management systems is estimated to result in an annual electricity consumption reduction of 86 million kilowatt-hours, equating to a decrease of 43,000 tons of carbon emissions. This reduction is equivalent to the carbon absorption of 110 Daan Forest Parks in Taipei. Far EasTone's commitment to environmental sustainability extends to its innovative "AI base station site selection," which minimizes unnecessary duplication of investment. Combining this with intelligent mixing and dormancy technology, Far EasTone anticipates saving up to 46% of the energy consumption of base stations, approximately 50,000 tons of carbon emissions annually. In addition to environmental considerations, Far EasTone places significant emphasis on user network security. Leveraging AI machine learning, the company actively blocks fraudulent information in voice, text messages, and website links, contributing to its commitment to providing users with "the most environmentally friendly and secure network."

Far EasTone has clarified that following the merger, the SIM cards and tariffs of the original APT users remain valid. Mobile phone communications will continue to display "GT" (Asia-Pacific Telecommunications). However, calls to Far EasTone users will now be billed within the network, providing original APT users with access to Far EasTone's network, stores, and customer service. Notably, Far EasTone's customer service has been recognized with the gold medal in the "Taiwan Service Industry Assessment" for an impressive 12 consecutive years. This commitment to service excellence is expected to enhance the overall customer experience for original APT users. For original APT users looking to transition to the New Far EasTone experience, the process is facilitated through both physical stores and online channels. Once they switch to New Far EasTone tariffs and SIM cards, these users can enjoy the enhanced network experience associated with the "Triple Champion of Spectrum." This initiative ensures a smooth transition for users, allowing them to benefit from the expanded spectrum portfolio and improved network capabilities resulting from the merger.