RealTime IT News

Global Crossing Buys 49 Percent of Chinese Cable Company

Global Crossing has acquired a 49 per cent share of S.B. Submarine Systems Company (SBSS) from Great Eastern Telecommunications (GET), a joint venture of Cable & Wireless and Hong Kong Telecom.

Global Crossing, which is building the world's most advanced global IP-based fibre optic network, reached agreement with China Telecommunications, the majority partner in SBSS to acquire the stake.

Established in 1995, SBSS provides installation and maintenance of submarine cable systems, operates two cableships and has berths and a cable depot in Shanghai. It has annual revenue over $50 million.

"We are delighted that China Telecom has agreed to continue this relationship and allow Global Crossing to acquire the GET share holding in SBSS," said William B. Carter, president of Global Crossing Development Company and chairman of Global Marine Systems.

"When we at Global Crossing acquired Global Marine Systems earlier this year, we were hopeful that we could sustain the relationship and support of China Telecom. This agreement ensures that SBSS will get the continued support in training and technology transfer it needs to keep up with the dramatic growth in Asia's telecommunications industry."

Despite this divestment by Cable & Wireless, the UK remains the sixth largest global investor in China, with investments of $13 billion by the end of 1998. British companies are involved in more than 2000 joint ventures with China.