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Technology Stocks : PCW - Pacific Century CyberWorks Limited -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (301)	2/8/2001 1:10:56 AM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

Telstra, PCCW begin business news.ft.com By Joe Leahy in Hong Kong Published: February 8 2001 00:21GMT \| Last Updated: February 8 2001 03:28GMT The joint ventures formed by Pacific Century CyberWorks, the Hong Kong telecoms and internet company, and Telstra Corp of Australia will begin operations on Thursday, with a raft of senior appointments. The ventures include a company specialising in fibre-optic cable, a mobile operator and an internet data-centre company. The partnership was first considered last April, but was contingent on PCCW's takeover of Cable & Wireless HKT, formerly Hong Kong's dominant telecommunications company. This was completed in August. The partners said Alistair Grieve, previously chief operating officer of a Malaysian telecommunications company, Maxis Communications, would head the fibre-optic cable company as chief executive officer. This venture, to be known as Reach, is equally owned by Telstra and PCCW, and will have interests in more than 50 submarine cable systems and more than 1,000 staff in 14 countries. Initial annual revenue would be US$1.9bn, the partners said. The regional mobile company, which will be based on the former C&W HKT's cellular business, will be headed by Hubert Ng, of PCCW, who will serve as chief executive officer. The data centre company, a start-up operation, will be headed by Alex Arena of PCCW, who will serve as chairman. Despite their initial optimism, the partners will have to overcome considerable scepticism about the prospects of the ventures, particularly Reach. "Put bluntly, the frenzy of cable-laying projects that characterise this business is likely to lead to a gross oversupply of capacity within the next 12-18 months," said Nomura International. It predicted that regional capacity would increase to more than three times current levels by the end of this year. --------------------------------------------------------------------------------