China
Zhang Fan, head of mobile communications at China Unicom, said his company would definitely build narrowband networks based on the CDMA standard. In June, the company had still ruled out using narrowband CDMA, opting to wait for third-generation technology. China Unicom will invite tenders in November to build a US$2 billion 10 million subscriber CDMA mobile-phone network. Construction will begin early next year.
Hong Kong
Telstra and Hong Kong Internet company Pacific Century CyberWorks (PCCW) revised terms of their alliance, announced in April. Telstra will grab control of PCCW’s recently acquired Hong Kong mobile company and reduce its cash commitment by US$532 million under the new terms, prompted by PCCW’s plummeting share price since the first announcement. The companies also said they plan to continue to work to create a regional wireless proposition and to bring in a strategic partner.
Singapore
Australia’s One.Tel announced its intention to pull out of the Singapore telecommunications market, citing Singapore Telecom as creating an unfavorable environment. One.Tel will move its Asian hub in Hong Kong. It further plans to channel back investments of US$5.58 million slated for Singapore in its first year of operations. One.Tel blamed the move on its inability to negotiate a satisfactory interconnection agreement with SingTel. SingTel countered the deal faltered because One.Tel asked for preferential terms.
Vietnam
A consortium of South Korean companies signed a contract to build a 144-kilobits-per-second network based on the CDMA 1XRTT standard in Vietnam, according to the network’s local partner Saigon Postel. Saigon Postel signed a contract to develop a 1 million subscriber capacity network with a South Korean consortium called SLD Telecom, which is majority-owned by SK Telecom, with stakes held by LG Electronics and Dong Ah Elecomm. The US$230 million network will begin to be built in the first half of 2001.
