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May 4, 1994

AT&T ENTER CHINA TELECOMMUNICATIONS INFRASTRUCTURE AGREEMENT

By CBR Staff Writer

AT&T Corp has now entered a broad set of business agreements to provide technologies, products and services to enhance the telecommunications infrastructure in China: since it signed its memorandum of understanding establishing a long- term partnership last year, it says it has secured more than $500m in sales contracts and doubled its revenues in China; the new agreement calls for it to invest more than $150m in China over the next 24 months, and anticipates that the company’s current in-country workforce of 800 employees will triple over the next 24 to 36 months; it says that among other things, it will establish two telephone switch assembly operations which together will have the capacity to deliver 2m lines of switching per year to China; it will also set up an AT&T Bell Laboratories research and development facility in China and a training programme in the US for mid- and senior level managers for China’s Ministry of Posts and Telecommunications; AT&T says it currently sells fiber cable products, wireless systems, international long distance services, computers and networking systems in China.

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