Telstra and PCCW Unveil Asia-Wide Plan

[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.

Datacentre business will own and operate a network of centers throughout
the Asia/Pacific region, initially located outside PCCW and Telstra’s home
markets, in countries such as China, Japan, South Korea, Taiwan, Singapore
and New Zealand. The centers will provide a range of Internet service
offerings, initially focusing on hosting services including co-location,
dedicated and shared server hosting for ASPs and dot-com companies.