BIZCHINA / Overseas Investment
Australia's Telstra hints at China expansion
(Shenzhen Daily/Agencies)
Updated: 2007-02-12 11:39
Australia's biggest telecommunications company Telstra has hinted at
expanding its business in China but said future earnings are not
dependent on the Asian powerhouse.
Chief executive Sol Trujillo said Telstra's ownership of Hong Kong-based
mobile operator CSL could be considered as a platform for a move into the
Chinese mainland.
"We haven't made a big move in terms of China, but we do have a major
presence in Hong Kong �� we have the largest wireless operator, CSL, in
Hong Kong, which is, as we all know, kind of a gateway into the
mainland," Trujillo told reporters.
"As opportunities present themselves perhaps we would look at that
(moving into the mainland), but yes, if there's something that makes
sense at the right time, we would look at it, but our business plan and
business base is not dependent on any major moves into China."
Trujillo said he expected Telstra, which has battled to overcome
dwindling profits from its traditional revenue source of fixed line
telephones, to change its revenue profile substantially in the next three
years.
"By 2010 Telstra won't any longer be called just a telecom business, it
is going to be called a media communications business, which means our
revenue profiles will change," he said.
"We'll have bigger broadband revenues, which are growing today at
significant double digit rates, we will have significantly higher mobile
services revenues."
Trujillo said he expected earnings from traditional telephone services to
drop from about one-third to 20 percent of revenues by 2010.
The chief executive also said that not all the company's income would be
generated domestically.
"We have some offshore activities that may be material," he said.
(For more biz stories, please visit Industry Updates)
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