The English-speaking world seems to be plunging fastest into the brave new world of multimedia and telecommunications television convergence, and in Australia yesterday, it was announced that Optus Communications Pty Ltd is to take on board Kerry Packer’s Nine Network Australia Ltd, strongest of the local commercial television networks as an investor, giving Packer a 15% stake by issuing 265m new shares for the equivalent of $220m. Optus is Australia’s second largest telecommunications carrier, and following the transaction the ownership split will be Mayne Nickless Ltd 21.2%, BellSouth Corp 20.9%, Cable & Wireless Plc 20.9%, The Australian Mutual Provident Society 8.7%, National Mutual 5.2%, AIDC Ltd 8.2% and Nine Network 15%; BellSouth and Cable & Wireless previously held 24.5% each. Nine Network is about 45% owned by Packer’s family company Consolidated Press Holdings Ltd. One broker said the deal showed Packer was opting for cable over satellite as his preferred transmission system for pay television, which is being introduced into Australia: Optus is spending more than $4,500m over six years to build a fibre-optic cable network around Australia. Packer failed to win a satellite licence when they were awarded last year. Optus said that the restructuring of the group will facilitate a listing of its shares on the Australian Stock Exchange in due course, possibly next year. Analysts estimate that it has 20% of Australia’s cellular mobile telephone market, 18% of its overseas traffic and 7% of domestic long distance calls. Telecom Australia retains a monopoly on local calls. Nine Network has agreed to maintain its holding for a minimum five-year period and under the terms of the transaction, and is limited to a maximum 20% stake over that period.
