Chinese company Ping An WiFi announced that it has partnered with tech startup company Kuang-Chi Group to provide better WiFi services.
Major investment
Ping An WiFi, a subsidiary of the Ping An Group, said that Kuang Chi has pledged an investment of more than $79.5 million for the establishment of a new company called Shenzhen Ping'an Xunke. The new venture is meant to promote the two companies' "smart WiFi network application industrial alliance," China Tech News reported.
According to Ping An, the main goal of the alliance is to encourage the development of new technologies, materials, and products to make internet connectivity more prevalent. This is in line with the two parties' push for the development of so-called smart cities.
Ping An itself has already pledged more than $14.5 million into the alliance for initial research and development of potential applications. On the other hand, Kuang Chi's main focus would be the development of hardware and materials for the project.
Rong Guoquang, the chairman of Ping'an Xunke, said that they have yet to make a profit on the venture. But he adds that he is optimistic with the new business model that the two groups have agreed upon.
The chairman also sai9d that one of the services that they could possibly launch would let users enjoy free data, while also giving benefits like higher interests when buying particular financial products.
Complementary advantages
Chen Kexiang, the vice general manager for Ping-An WiFi's parent company Ping An Insurance, also expressed his optimism for the alliance. He noted that the two companies involved have "complementary advantages" that could help each other and the venture. China Daily reported.
Chen said that Ping An WiFi's large user base will provide Kuang Chi plenty of opportunities to apply the technologies that it will develop. On the other hand, Kuang-Chi can provide Ping An with products that will boost its services, such as the former's super WiFi technology.
Kuang Chi's Super WiFi is based on metamaterials technologies and allows for quick and reliable WiFi services to be set up even in areas of high traffic.