By Wang Xu (China Daily)
Updated: 2007-09-07 06:21

Leading telecom operator BT Group will invest at least $70 million in China in the coming years as part of its efforts to more than double revenue in the country by 2009.

The UK firm opened a technology and service center in Dalian and a research and development (R&D) facility in Shanghai yesterday, as part of the investment.

"We are very committed to pursuing long-term development in China," said Bill Lam, vice-president of BT Global Services' Northeast Asia operation, adding the new facilities will help the company to meet demand from global and local clients.

BT has recruited about 60 employees for its Dalian center to provide software development, service delivery and support for clients in China, Japan and South Korea. Its R&D center in Shanghai, the fourth globally, will be used for research and will also provide services to clients in China.

"Our strategy is to support Chinese companies going abroad and companies from outside to be successful in China," said Ben Verwaayen, CEO of BT Group. "The more Chinese companies become successful in the world, the better for BT."

BT said it has signed an agreement with ZTE Corp, a Chinese telecom equipment and solution provider, to provide connection services for ZTE in the Asia-Pacific region and South America.

The telecom operator entered the Chinese market in 1995, with its main business of serving multinationals' Chinese operations. It said last year that it expected annual revenue could amount to $250 million by 2009.

"We will continue to expand our business here, through partnership or even merger and acquisition," said Francois Barrault, CEO of BT Global Services.

BT has partnered with China Netcom, one of the top four Chinese telecom operators, to provide MPLS, an important technology for fixed and mobile services on a converged network.

China's booming telecom market has proven enticing to overseas operators since the nation entered the World Trade Organization. Foreign operators can now take a stake of up to 49 percent in a joint venture providing "basic services" such as voice telecom services, and a share of up to 50 percent in foreign-invested companies offering value-added telecom services.

Leading foreign operators Vodafone and Telefonica have bought stakes in Hong Kong-listed China Mobile and China Netcom in recent years. In August, South Korea's SK Telecom acquired a 6.7 percent stake in China Unicom, the nation's smaller mobile service operator.

(China Daily 09/07/2007 page14)