Australian Internet service provider New Tel Ltd. this week announced it will work with Xinhaua Holdings Ltd. to offer an ISP and portal in China.
Under the New Tel-Xinhua agreements, Xinhua will create a new company, Newco, which will be
acquired by New Tel (NWLL) for $400 million in stock. New Tel will then offer its Internet access services to China via Newco. The firm will also create of a Chinese/English portal in China and provide telephony services.
“The Internet business in China is part of the company’s overall strategy to provide a range of
value-added products and services for existing customers,” said Peter Malone, New Tel CEO.
“New Tel and Xinhua intend to work in partnership with a
number of government
owned enterprises in China to accelerate the uptake of Internet access in
China. The ISP business will
leverage from existing ISPs, with strategic alliances with infrastructure
providers providing the opportunity
to reach a large portion of the Internet access market.”
He added that the portal will host content from a variety of Xinhua partners.