China Telecom holds submarine cable talks with European telcos

25 Sep 2003

China Telecommunications Corp is reported to be in negotiations with BT Group [BT.L] and Deutsche Telekom [NYSE: DT] to acquire undersea fibre-optic cable networks worth an estimated USD1 billion. According to local press reports, the state-owned PTO’s Hong Kong-listed subsidiary China Telecom Corp [0728.BE] has struck a preliminary deal to buy some of the European telcos cable assets on the Atlantic coast. China Telecom currently leases capacity on several submarine cable systems to handle its international call traffic, but hopes to acquire its own infrastructure; it plans to raise some of the USD1 billion it needs for the purchase through bank loans.