Look the other way: Telstra defends its Asian acquisition decisions

18 Jun 2003

Telstra, Australia’s incumbent fixed line telco, has defended itself against a barrage of criticism for its acquisitions in Asia. Telstra claimed that CSL, its Hong Kong-based cellular operator subsidiary, was continuing to perform well in spite of the impact of intense price wars and the SARS outbreak. An Australian newspaper issued a report stating that Telstra would have to reduce the book value of CSL by another AUD1 billion following previous reductions. Telstra rejected the paper’s claims, stating that it was ‘pure speculation.’ However, it has had to reduce the book value of its other Asian subsidiary Reach, part of an alliance with Pacific Century Cyberworks (PCCW).