PCCW and Netcom plan new joint venture

18 Mar 2005

According to reports in Hong Kong broadsheet The Standard, PCCW and China Netcom are discussing the formation of 50/50 joint venture which would encompass both group’s international carrier businesses. As a first step, China Netcom would consolidate its two current international businesses – CNC International and Asia Netcom – into a single company. Once complete, PCCW would inject its 50% stake in undersea cable venture Reach into the company. Reach, a joint venture with Telstra, posted a net loss of USD2.6 billion last year thanks to massive write-offs of its infrastructure investments.

Hong Kong, China Netcom, HKT/PCCW (incl. CSL), PCCW Group, REACH (Hong Kong)