Telstra Corporation Limited - Analysis of the PCCW jv

Synopsis

This report was archived in July 2007 and was last updated in January 2005. It contains several analyses by Paul Budde relating to the Telstra/PCCW joint venture, from its inception to early 2005. This includes Paul’s original disquiet at the nature, cost and desirability of the deal, up to the realisation of those concerns. With continuing financial disasters for PCCW, its only viable asset is the old Hong Kong Telecom. With the collapse of the original PCCW concept, the Internet company basically doesn’t exist anymore and the mobile business remains a big question mark. The Reach deal has also been written off. Telstra has bought itself a big lemon and we haven’t seen the end of it yet. A surprise much better solution for CSL was announced in December 2005.