What Happened: The two companies aim to build mobile 5G base stations for use in rescue missions during emergencies and in places with no or low telecom communications.  

Pegatron is also conducting a pilot run of a dedicated local network at a serviced apartment in Tokyo, as per the report.

See Also: Huawei To Charge 5G Royalties From Apple, Samsung

Why It Matters: Pegatron and peer suppliers have also been trying to tap the 5G private networks opportunity on their own. Foxconn announced plans to build a private 5G network without a telecom vendor last year. 

Pegatron and ilk see an opportunity to build their own private 5G networks as a number of companies seek such networks for security purposes. Also, many countries are yet to deploy the infrastructure for 5G network.

Price Action: Foxconn shares closed 1.24% higher at $7.36 a share on Tuesday. 

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