Telstra 2000 Annual Report Download - page 10

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8
International/Pan-Asian Growth. We also see
real opportunities to leverage our strengths
and expand into global markets, particularly
the Asia Pacific region and primarily in mobiles/
wireless and internet/data/e-commerce. We aim
to establish a portfolio of investments in the
region and link them all together with our
regional backbone network. Through this
process we aim to be the partner of choice for
the South East Asia region for any individual,
company or other telco wishing to do business
in this part of the world. For example, we
believe we can become a major regional cellular
operator. This will allow us to work with other
carriers in the Americas and Europe to provide
our combined customers with seamless global
services while driving down operational costs.
The Pacific Century CyberWorks (PCCW)
alliance, which was announced recently, will
provide us with the capability to achieve many
of these objectives.This deal combines the
expertise and resources of two of the largest
communications and convergence businesses
in Asia to create leading pan-Asian businesses
in wireless communications and data/Internet
Protocol (IP) carriage. It will give us scale
efficiencies to assist in achieving clear market
leadership. It will give us an immediate
customer base in a growing region, something
that would be very slow and expensive to grow
organically and, importantly, it gives us a
forward thinking partner in PCCW.
Our combined backbone assets will make
us a large and dominant player in the region,
extremely well placed to tap into the massive
growth in data traffic into and out of the region.
The wireless company places the under-utilised
and highly attractive Cable & Wireless Hong Kong-
Telecom mobile business in a vehicle that will
allow it, and like investments, to flourish.
We believe the PCCW alliance will create
a set of huge businesses for Telstra. Also in
the international arena, in Singapore we have
joined forces with Keppel, the intention being
to provide corporate and consumer customers
with end-to-end voice, data and Internet
Protocol based services.We also announced
the pooling of our New Zealand assets with
Saturn to create Telstra Saturn, which will be
a formidable competitor in that market. We
will be rolling out a state-of-the-art broadband
network in New Zealand and are well placed
to leverage both the products and relationships
we already have in Australia.
Telstra and KPN have finalised an agreement
to form a joint venture company by merging
their respective mobile satellite communications
businesses. The joint venture company is
trading worldwide as ‘Station 12’, and enjoys
a combined start-up global market share of
some 24 per cent, making it a major, and
arguably the leading, player in the global
satellite communications industry.
150,000 broadband connections over 12-18 months >1,000,000 in 5 years
ACCESS SERVICE
$millions $millions
Group assets
18,609
17,571
16,703
15,430
1997
1998
1999
2000
30,339
27,682
26,470
25,858
1997
1998
1999
2000
Sales revenue