AT&T, Chinese Telecoms Launch Joint Venture

SHANGHAI, China, Dec. 7 -- China's telecommunications service industry has seen its first joint venture with the recent agreement between Shanghai Telecom, AT&T and Shanghai Information Investment Inc (SII). The companies have formed a joint venture company, called Shanghai Symphony Telecommunications Co. Ltd., to provide broadband IP services to business customers beginning in the Pudong New Area, Shanghai.
The joint venture enjoys the support of the State Council, Ministry of Information Industry, Shanghai municipal government and China Telecom Group. Shanghai Telecom will own 60 percent of the venture, while AT&T will own 25 per cent and SII 15 per cent. Shanghai Symphony Telecom's boar of directors will include members from each of the participating companies, and top executives from each of the companies will help manage the new company.
Shanghai Telecom will provide Shanghai Symphony Telecom with dark fiber. The new company will implement high-reliability fiber optic rings with high-speed routers and switches and provide access fiber directly to customer buildings. The venture is expected to be operational by mid-2001.