SINGAPORE (04/12/2000) - Australia's Telstra Corp. and Hong Kong's Pacific Century CyberWorks Limited (PCCW) today signed a memorandum of understanding to form a major strategic alliance in Internet, data, IP (Internet Protocol), wireless and business services in the pan-Asian region, Telstra said in a statement today.
The alliance provides Telstra with a significant opportunity to expand its activities beyond Australia to become a major pan-Asian player, said Telstra Chief Executive Officer Ziggy Switkowski in the statement.
The plan is to create the first pan-Asian companies with true regional capabilities in cable networks, wireless telephony and IP data Backbones, Switkowski said in the statement. It represents an important opportunity to add more shareholder value from nontraditional areas, he was quoted as saying.
For the first time more than half of Telstra's revenues are coming from nontraditional telephony sources such as mobiles, data and the Internet, according to the statement.
Intense competition in the Australian marketplace resulting from deregulation has seen the erosion of Telstra's market share and margins in traditional areas of revenue.
The alliance with PCCW provides potential for growth in Telstra's nontraditional activities leading to the creation of long term shareholder value, Switkowski said in the statement.
Telstra can be reached at +61-2-9206-0106 or online at http://www.telstra.com/.
PCCW, in Hong Kong, can be reached at +852-2514-8888 or online at http://www.pcg-group.com.