Telstra and PCCW Unveil Asia-Wide Plan
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[Sydney, AUSTRALIA] Telstra has outlined the terms of its Pan-Asian alliance with Hong Kong entrepreneur Richard Li9s Pacific Century Cyberworks, first announced in April.
The companies announced plans to create three joint venture companies aiming to captialize on growth in regional data, Internet and wireless communications. Telstra has previously announced plans for a pan-Asian mobiles/wireless company, and today said it would establish with PCCW an IP network offering regional and global reach.
Telstra and PCCW also announced plans to add a data center business, and to cooperate on broadband product offerings, meaning the introduction of a new player, Network of the World to the Australian ISP market.
Telstra will also contribute $2.5 billion in cash for its shareholding in the regional wireless joint venture, but will not contribute any of its current mobile assets. PCCW will bring its HKT wireless business to the venture, and hold a 60 percent shareholding in the new company, with Telstra holding 40 percent. Telstra has retained the right to equalize its shareholding within 18 months.