Telstra, PCCW Mobile JV May Bid For HK 3G License
Updated: Wednesday, February 7, 2001 04:56 AM ET
(Corrected 06:18 AM)
HONG KONG (Dow Jones)--The mobile joint venture between Australia's Telstra Corp. (TLS, news, msgs) and Hong Kong's Pacific Century CyberWorks Ltd. (PCW, news, msgs) is considering bidding for a third generation mobile license in Hong Kong, a top official of the joint venture said Wednesday.
"We have been considering bidding for a 3G license," said Hubert Ng, head of the newly-formed joint venture.
The new mobile company is 60% owned by Telstra and 40% owned by PCCW. The Australian company paid US$1.6 billion for the majority stake last late year.
Separately, PCCW Chairman Richard Li told reporters that the question of what U.K. telecom operator Cable & Wireless PLC (CWP, news, msgs) will do with the 15.3% stake it holds in PCCW could be resolved in one to two weeks.
He declined to comment on what sort of solution is being discussed, but noted that PCCW has not been in talks regarding C&W's shares with Cheung Kong (Holdings) Ltd. (H.CKH, news, msgs) or Hutchison Whampoa Ltd. (H.HUW, news, msgs), which are both controlled by Li Ka-shing - a local business tycoon and father of Richard Li.
According to the initial agreement struck when PCCW bought the Hong Kong telecom arm of C&W in August last year, C&W has the right to sell half its stake after Feb. 17, and the remainder in another six months.
Fears that the U.K. operator would dump this sizable stake in the market when its lock-up period expires have pressured PCCW's shares recently, and speculation is now that C&W, with permission from PCCW, will sell the entire stake to a group of telecom companies.
-By Sonia Tsang and Anette Jonsson, Dow Jones Newswires; 852-2802-7002; anette.jonsson@dowjones.com
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