Pan-Asian IP and mobile venture receives $3bn boost

NEWS Australian telco, Telstra Corporation, and Hong Kong's Pacific Century CyberWorks (PCCW) today finalised a $3bn agreement to establish three pan-Asian joint venture companies. The new companies will incorporate an IP network, a wireless mobile operator and a pan-Pacific network of web-hosting centres. Both companies will hold an equal stake in the IP company, with PCCW holding a 60 per cent share of the mobile venture. Stakes in the third company are yet to be confirmed. The wireless mobile venture will incorporate PCCW's recent $38.1bn acquisition of Cable & Wireless Hong Kong. Telstra will invest in the alliance by means of a $1.5bn PCCW convertible note and an additional $1.5bn in cash.