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ChinaThe company is looking to establish a representative office in New Delhi and is awaiting approval, Deng Xiao Feng, chief executive of China Telecom’s Hong Kong-based arm, told WSJ in an interview.
China Telecom is currently cooperating with major telecom companies like Bharti Airtel Ltd, Reliance Communications Ltd and Tata Communications Ltd on establishing a cable connection between the two countries, the paper reported.
China and India are currently connected by undersea cable connection, which can be affected by earthquakes. Large parts of Middle East and India experienced massive disruptions in 2008 as two undersea cables were damaged in the Mediterranean region. Though the cause was not immediately apparent, some reports suggested the damage occured due to a ship's anchor near Egypt.
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Internet is crucial to India's burgeoning BPO and call center services, as the country becomes increasingly popular as the destination for outsourcing services. Such disruptions can create major havoc to businesses in India, creating a ripple effect to other regions as well.
While the company is not interested in acquiring a network or a stake in Indian companies, given the licensing and regulatory obstacles, it would like to create a Sino-Indian land cable to cash in on the increasing demand in the region.
China Telecom’s profit growth is slowing due to increasing competition due to government led restructuring, increased marketing costs and handset subsidies.
China Telecom bought China Telecommunications under the government restructuring plan for telecom. The restructuring was done with an intention to transform into the companies that offer both 2G and 3G services and improving the competitiveness of local players.
State-owned telecom operator saw its profit grow about 1 percent in the first half of 2010. But the company has not backed away from spending more to upgrade its network and transmission.
The company’s market share has risen 10 percent from 4 percent since it acquired Unicom’s CDMA operations, Feng said.
In a plan to boost its share further, the company has opened Internet data centers in Hong Kong and Singapore, and has plans to open future centers in Japan and Australia.
China Telecom could not be immediately reached for a comment by the International Business Times
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