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Technology Stocks : Pacific Century CyberWorks (PCW, PCWKF)
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To: ms.smartest.person who wrote (4083)12/9/2000 1:04:49 AM
From: ms.smartest.person  Read Replies (1) of 4541
 
Wholesale only for IPBC

Australian telco Telstra expects that its IP Backbone Company joint venture with Hong Kong's Pacific Century CyberWorks will be one of a handful of global wholesale carriers providing international capacity to 80% of the world's operators – the current market valuation of equity partner PCCW notwithstanding.

IPBC, which was first announced in August following PCCW's completion of its acquisition of Cable & Wireless HKT, is now "deep into execution mode" according to Telstra's global wholesale MD John Hibbard.

"The company itself should be set up and completed sometime around the Chinese New Year, and the integration process of the networks is already underway," said Hibbard.

Wholesale connectivity is planned to be the core of the IPBC business, said Hibbard, who expects the global wholesale market to consolidate into around three to five carriers over the next five years.

The differentiation IPBC hopes to offer is that it will sell only to other carriers. "We have no intention to offer services direct to multinationals or residential customers," said Hibbard.

The strategy behind this "purity of wholesale" approach, Hibbard says, is to avoid competing against their own potential customer base. "They can use us and not feel as though we're going to eat their lunch."

telecomasia.net
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