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AT&T seeks stronger foothold in China

By Li Weitao (China Daily)
Updated: 2006-04-07 06:05

AT&T, the largest telecoms firm in the United States, plans to open its first Internet Data Centre in Shanghai in the next few months with a local partner, a move that signals its increasing expansion in China.

AT&T Group President Forrest Miller said recent mergers with communications providers SBC Communications Corp and BellSouth have spurred the company to seek a stronger foothold in the nation.

"China has been a real focal point of our activities," Miller told China Daily.

"The merger between SBC and AT&T will deliver even greater strength and capability to our global operations and strategy, as it will provide greater access to capital for future investment and expansion."

SBC last November completed a US$16 billion acquisition of AT&T Corp. The new combined company last month announced yet another merger with BellSouth Corp in a deal valued at US$67 billion, pending US regulators' approval.

AT&T was the first foreign company allowed to provide telecommunications services in China by setting up a joint venture with Shanghai Telecom and Shanghai Information Investment.

The venture, called Unisiti, previously known as Shanghai Symphony Telecommunications Co, provides value-added services and managed services to multinationals and domestic enterprise markets.

So far it has signed more than 200 MNC (multinational corporation) customers including Sony, Omron and COSCO.

The firm partnered with China Telecom and China Netcom to extend its reach to more than 135 cities in China.

"The joint venture continues to provide AT&T with a key competitive differentiator in China," said Miller.

AT&T last year saw annual revenues in China, including Hong Kong and Taiwan, grow 11 per cent year-on-year.Last year, the firm relocated its Greater China Group headquarters from Hong Kong to Shanghai to better serve local customers.

Cingular Wireless, the largest US mobile operator in which AT&T holds a 60 per cent stake, may also seek business opportunities in China in the future.