Far EasTone teams up with Ericsson to set up first 5G lab in Taiwan, and tops telecommunications industry with dividend payout ratio of 106%

At today's 2016 Far EasTone Telecommunications Co. Ltd. (4904: TAI) annual meeting of shareholders, company chairman Douglas Hsu and the management team announced Far EasTone (FET) had signed a memorandum of understanding with Ericsson to set up the first 5G lab in Taiwan in a bid to accelerate industrial and social transformation in the age of the Internet of Things. Mr. Hsu also presented shareholders with the company's robust performance in 2015 and its strategic planning. At 106%, the company's dividend payout ratio outperformed competitors and exceeded 100% for the fifth year in a row.

First 5G lab brings cutting-edge technology to Taiwan
In its determination to seek technological innovation, the Far Eastern Group set up an experimental network in the Taipei Far Eastern Telecom Park (T-Park) many years ago to facilitate cooperation with telecom operators around the world. On the cusp of the 5G telecommunications era, FET is investing in next-generation technology by signing a 5G cooperation memorandum of understanding with Ericsson, a world leader in communication technology and services. FET is the first telecom company in Taiwan, and the twenty-fifth in the world, to cooperate with Ericsson.
'Technology is changing beyond our imagination, so we need to constantly learn and innovate in order to keep up,' said FET chairman Douglas Hsu. 'FET and Ericsson are scheduled to set up Taiwan's first 5G lab in the T-Park in the third quarter of this year. We hope our cooperation will speed up the transformation of Taiwanese industries and society in the age of the Internet of Things.' The collaboration will focus on transportation, audiovisual content platform, and utilities. It is estimated that by 2020, Taiwan will have 100 million connected devices, and 5G technology will enable users to enjoy internet speeds 100 times faster than today's 4G network.
OpenSignal: FET network speed the fastest
Long a leader in mobile technology and IoT innovation, FET has made considerable investment in recent years to strengthen its internet infrastructure and enhance the speed and quality of its mobile network. In March, FET began operating on the 2600 MHz band and integrated its three bands to offer 4.5G services. According to data released in early May by OpenSignal, the wireless coverage mapping company, FET's overall performance in 3G and 4G networks was the best in Taiwan. The company's download and upload speeds outperformed competitors by a large margin, winning high acclaim from consumers for both network speeds and user experience. The number of FET 4G users has also seen exponential growth: as of the end of May, 56.6% of FET's users are 4G monthly service subscribers, the highest penetration rate in the industry.
FET is the first telecom company in Asia to offer services on three spectrums: 700, 1800, and 2600MHz, and to date the only one to employ quad-band TDD and FDD technologies. TDD and FDD are mainstream technologies in the international telecom industry, so securing these technologies gave FET a head start in communications cooperation with China. FET shareholder NTT DoCoMo's leadership position in 5G technology has also created a competitive advantage for FET and enabled it to develop cutting-edge technology. Going forward, FET will continue to build on its network advantage to offer ultra-fast, ultra-stable, and ultra-wide internet coverage and optimal service experience.
Outstanding dividends and award-winning corporate governance
Thanks to the tireless efforts of FET staff, total revenues in 2015 reached NT$97.293 billion, and EBITDA (earnings before interest, taxes, depreciation, and amortization) and after-tax earnings amounted to NT$26.813 billion and NT$11.486 billion, respectively. The EPS of NT$3.52 leveled with the figure of 2014, and in keeping with its dividend payout policy, FET paid out NT$3.75 per share this year, representing a dividend payout ratio of 106%, the highest in the industry and the fifth consecutive year that the ratio has exceeded 100%.
'Corporate social responsibility has been an important guiding principle in FET's push for organizational reform, and in the next three years the company will work towards the goal of '4G sustainability' and take stock of risks and opportunities to ensure stable operational development,' said FET President Yvonne Li. 'Faced with challenges in emerging markets and the current 4G market, FET will continue to provide comprehensive employee benefit packages, well-rounded competency development programs, and a transparent communication channel. We hope our long-term project to foster talent will serve as a uniting force among our employees, bringing everybody to work together towards the goal of sustainable growth, higher shareholder value, and realization of the company vision: FET Connects and Enriches Life.'
2015 Top Ten Model Company
Last year, FET published the first integrated report in Taiwan, showing itself to be a model company with a carefully planned sustainability strategy. In addition to being named a winner of the 2015 Taiwan Corporate Sustainability Award, FET received international acclaim for its corporate governance: in 2015 and 2016, Hong Kong-based FinanceAsia magazine presented FET with awards for Best Managed Company, Best Corporate Governance, Best Investor Relations, Most Committed to a Strong Dividend Policy, Best Corporate Social Responsibility, and Best CEO. Also, FET was listed among the 5% best governed companies by the magazine for two years in a row. All these honors are testimony to FET's excellent corporate governance track record.
Outstanding service winning hearts and minds
FET sees its customers as family, and its ability to anticipate customer needs has consistently helped it to outperform in a highly competitive market. The incredible dedication of FET staff has won the company top awards in the category of telecom operators from Taipei-based Commercial Times (four years in a row) and Next Magazine (three years in a row). In addition, at a Taiwan Chain Stores and Franchise Association event held to recognize outstanding store managers, 17 FET store managers were winners, three of whom were even honored with the title of 'best store managers in Taiwan'.
FET is constantly innovating and seeking to reach new highs in customer service, product offerings, and subscription plan designs in the hope of becoming the top choice for all consumers. The company's three-year brand campaign, 'Express your love. Let it be heard', also received international accolade, including the gold award at the ROI Festival and the Effie Greater China Award. In the face of ever-faster changes in the ICT industry, FET stands ready to achieve annual targets and continue to grow. FET will also strive to offer richer, higher-quality multimedia services that delight customers and create new heights in the telecom industry.


Far Eastone Telecommunications Co. Ltd. published this content on 21 June 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 21 June 2016 07:55:07 UTC.

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