Cable & Wireless HKT has formed a 50-50 joint venture with its London parent Cable & Wireless to invest in internet service providers in Southeast Asia. Cable & Wireless Asia (C&W Asia) will fund its acquisitions and joint ventures with an initial capital of HK$100m ($12.8m), but there is no limit on the level of investment, according to C&W HKT finance director David Prince. C&W HKT has a lot of cash and no gearing, he said.
The aim of the new venture is to set up ISPs in key Southeast Asian cities and link them via a broadband internet protocol network. The ISPs will offer services such as high-speed internet access, electronic commerce and business portals to corporate customers. C&W Asia will be based in Hong Kong and outsource most of its daily operations and functions to C&W HKT.
The new company has already made its first investment, setting up an ISP in Singapore with Nasdaq-listed Singaporean company Creative Technology, a maker of computer peripherals. It has a 75% stake in the joint-venture company, Cable & Wireless Network Services Singapore, and its initial investment was $4m.
