AT&T, the first foreign player to venture into China's telecoms market, is planning to expand its business to four domestic cities within the year, a company executive told Business Weekly.
"We are now applying for operations in Beijing, Guangzhou and Shenzhen after our initial business in Shanghai," said Art Kobler, president of AT&T China Inc.
As the biggest fixed-line telecom provider in the US, Kobler said AT&T is interested for all voice and data businesses in China, including local phone calls, long distance phone calls, Internet access and Internet data centre services.
For the time being, AT&T is forbiden to provide voice related services. But Kobler is confident to get rich feedback from data-only services.
"Shanghai is just our beginning point and will support our geographic expansion," Kobler said.
Although the industry regulator, the Ministry of Information Industry (MII), has not given the go-ahead, Kobler said he is confident of securing approval soon.
AT&T is the first overseas telecoms operator to set up a joint venture company in cooperation with local partners.
The US telecoms giant holds a 25 per cent share of the US$25 million joint venture Shanghai Symphony Telecom.
The joint venture provides a range of services, including private networks and high-speed voice and data services, to foreign and Chinese multinationals in Shanghai.
Shanghai Telecom, a subsidiary of fixed-line giant China Telecom, holds a 60 per cent stake, and the remainder is held by Shanghai Information Investment, a firm controlled by the Shanghai municipal government.
Kobler said, since Shanghai Symphony began operation in late March, it has attracted local corporate customers in addition to its originally targeted multinational clients.
"We will focus on corporate customers who have businesses around the world. AT&T has no intention and ability to compete with local operators for residential customers," the company president said.
But he also said that AT&T has interests in all fixed-line businesses including voice, data, Internet access and other value-added services.
Similar to most of the world's international telecoms giants, AT&T has experienced a significant drop in its domestic business in the wake of the global economic downturn. The rich potential of the China market may help speed up AT&T's recovery, Kobler said.
Other telecoms giants, such as UK-based British Telecom (BT), have also followed suit.
BT recently signed a cooperation agreement with China's 21ViaNet to provide its global customers with data-related services in the mainland.
Humphrey Penney, director of BT Ignite Global Solutions, said the cooperation is only the beginning of BT's investment in China.
BT is proactively looking for potential opportunities in China. Penney said: "In the midst of the sluggish telecoms market around the globe, we see the growth all across the board ranging from Internet, information technology and telecoms sectors to traditional enterprises only here in China. China is the last land on Earth for a new round of prosperity."
However, more international telecoms giants, troubled by the incomplete telecoms regulatory framework in the country, are still hesitating outside China's door.
Despite the industry's rapid development, China still has not promulgated a law regulating the sector. The Telecoms Regulations, issued by the State Council in September 2000 and currently are the only provisions issued by the government, require many supplements, industry insiders said.
"Many overseas telecoms operators are waiting and observing how well the Chinese Government implements the Regulations," Kobler said.
(eastday.com May 24, 2002)
