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To: Jon Koplik who wrote (96584)	4/1/2001 8:57:47 PM
From: S100	Respond to of 152472

Telstra's mobile net push in China By Glenda Korporaal 02apr01 TELSTRA is in negotiations with China's Unicom Group to help with its mobile phone network rollout covering more than 200 Chinese cities. The discussions were held last week in Beijing during a visit by chief executive Ziggy Switkowski and newly appointed Telstra International head Dick Simpson. Telstra is also looking at the possibility of assisting several Chinese cities with upgrading their telecommunications infrastructure. The moves are part of a more active focus on potential business opportunities in China. This has also seen Telstra aggressively use its Olympic sponsorship to step up its contacts in Beijing, which is bidding for the right to host the 2008 Games. Speaking in Hong Kong at the weekend, Mr Simpson said Telstra had negotiated with the Unicom Group last week about helping it with the rollout of a mobile network. Unicom is establishing 15,000 base stations across China and expects to have 30 million customers within a couple of years. "In their view, we know a lot about it because we had come up with things like the Boomer cell – the extended range cell for CDMA coverage – and we were used to covering very large geographic land masses," Mr Simpson said. A recent report by ING Barings in Hong Kong says the Unicom Group is investing 10 billion yuan ($2.5 billion). Mr Simpson – who is also chairman of the Hong Kong-based CSL mobile phone company, now 60 per cent owned by Telstra and 40 per cent owned by Pacific Century CyberWorks – said Telstra could either take advantage of opportunities in China through its joint ventures with PCCW or it could do them on its own. Telstra has plans to boost its presence in China. It has Memo: currently offices in Beijing and Shanghai. Mr Simpson's appointment as head of Telstra International, based in Hong Kong, will also allow a closer scrutiny of potential business deals in China. China's entry into the World Trade Organisation later this year is also expected to open up the market for more foreign telecommunications companies. China has more than 90 million mobile phone users. In a speech in Beijing last week, Dr Switkowski pointed out that the mobile phone market in China grew by the size of the whole Australian market every three months. "Already China has the second largest wireless market in the world and in the next couple of years it will become the largest," he said. Mr Simpson said Telstra had also been talking to a number of Chinese cities about helping them upgrade their telco networks. "Some of the cities are offering quite interesting contracts to help them develop the infrastructure in their cities and their provinces. "We are looking at those and trying to assess where they will position us if we were to take those for ward." Mr Simpson described the business opportunities in China as being like a giant battleship emerging from the mists. "You have to be careful not to get in its way. You have to decide whether you are going to ride in its wake or be on deck. "It is exciting. It's big, it's complex and it is evolving. You tread with excitement and anticipation, but you are also somewhat cautious." Telstra has also been working closely with the city of Beijing to assist with its Olympic bid. The company signed a co-operation agreement with the city of Beijing during the Sydney Olympics last September to help the Chinese capital with the technological side of its Games bid. Telstra helped Beijing prepare the technological side of its bid books, which were presented to the International Olympic Committee earlier this year. It also had a representative in Beijing during the recent visit of the IOC's evaluation commission. theaustralian.com.au