Telecommunications Industry Update: March 1999

Strategic Insights -

The Indonesian government has been asked to cancel a joint operation scheme between state-owned PT Telkom and its private partners, which has sparked concerns about foreign investment. Meanwhile, Lucent Technologies has proposed to buy out the Tatas' stake in Tata Telecom Ltd, and the Indian government is considering automatic approval for 100% foreign direct investment in telecom equipment manufacturing ventures. In other news, NTT Worldwide Telecommunications Corp. is connecting its Arcstar Internet backbone with ChinaNet, and Philippine Long Distance Telephone is allocating $523.9 million for Y2K concerns and infrastructure development.

Key Takeaways:

  • The Indonesian government has been asked to cancel a joint operation scheme between state-owned PT Telkom and its private partners, which could impact foreign investment.
  • Lucent Technologies has proposed to buy out the Tatas' stake in Tata Telecom Ltd, but no deal has been finalized.
  • The Indian government is considering automatic approval for 100% foreign direct investment in telecom equipment manufacturing ventures.
  • NTT Worldwide Telecommunications Corp. is connecting its Arcstar Internet backbone with ChinaNet, providing direct access to Japanese Internet networks for Chinese users.
  • Philippine Long Distance Telephone is allocating $523.9 million for Y2K concerns and infrastructure development.
  • The Indian firms' e-commerce transactions in 1998 totaled $2.9 million.
  • Cable & Wireless Optus and Citibank have formed an alliance to offer online banking services in Australia.

Statistics:

  • $523.9 million: The amount allocated by Philippine Long Distance Telephone for Y2K concerns and infrastructure development in 1999.
  • $2.9 million: The total amount of e-commerce transactions by Indian firms in 1998.
  • 100%: The proposed foreign direct investment in telecom equipment manufacturing ventures that the Indian government is considering.
  • 20 billion pesos (US$523.9 million): The capital expenditures planned by Philippine Long Distance Telephone in 1999.
  • 1998: The year in which Indian firms conducted $2.9 million worth of e-commerce transactions.
  • 1999: The year in which the Indonesian government was asked to cancel a joint operation scheme between state-owned PT Telkom and its private partners.

Sources:

  • Asia Pulse (http://www.asiapulse.com)
  • The Hindu Business Line
  • COMTEX (http://www.comtexnews.com)
  • CNI News (http://www.cninews.com)
  • Business Wire (http://www.businesswire.com)
  • Asian Tribune (http://www.asian-tribune.com)