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BIZCHINA / Overseas Investment

BT Group ramps up investment in China

By Wang Xu (China Daily)
Updated: 2007-09-07 09:24

Leading telecom operator BT Group will invest at least US$70 million in
China in the coming years as part of its efforts to more than double
revenue in the country by 2009.

The UK firm opened a technology and service center in Dalian and a
research and development (R&D)?facility in Shanghai yesterday, as part of
the investment.

"We are very committed to pursuing long-term development in China," said
Bill Lam, vice-president of BT Global Services' Northeast Asia operation,
adding the new facilities will help the company to meet demand from
global and local clients.

BT has recruited about 60 employees for its Dalian center to provide
software development, service delivery and support for clients in China,
Japan and South Korea. Its R&D center in Shanghai, the fourth globally,
will be used for research and will also provide services to clients in
China.

"Our strategy is to support Chinese companies going abroad and companies
from outside to be successful in China," said Ben Verwaayen, chief
executive officer (CEO) of BT Group. "The more Chinese companies become
successful in the world, the better for BT."

BT said it has signed an agreement with ZTE Corp, a Chinese telecom
equipment and solution provider, to provide connection services for ZTE
in the Asia-Pacific region and South America.

The telecom operator entered the Chinese market in 1995, with its main
business of serving multinationals' Chinese operations. It said last year
that it expected annual revenue could amount to US$250 million by 2009.

"We will continue to expand our business here, through partnership or
even merger and acquisition," said Francois Barrault, CEO of BT Global
Services.

BT has partnered with China Netcom, one of the top four Chinese telecom
operators, to provide MPLS, an important technology for fixed and mobile
services on a converged network.

China's booming telecom market has proven enticing to overseas operators
since the nation entered the World Trade Organization. Foreign operators
can now take a stake of up to 49 percent in a joint venture providing
"basic services" such as voice telecom services, and a share of up to 50
percent in foreign-invested companies offering value-added telecom
services.

Leading foreign operators Vodafone and Telefonica have bought stakes in
Hong Kong-listed China Mobile and China Netcom in recent years. In
August, South Korea's SK Telecom acquired a 6.7 percent stake in China
Unicom, the nation's smaller mobile service operator.

(For more biz stories, please visit Industry Updates)

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