Case Studies of Australian Businesses in China
Telstra has been operating in China since the mid 1990s and established a representative office there in 1999. As well as providing telecommunications services to Australian multinationals, Telstra examined options for developing mobile networks and cable television. In the late 1990s, responding to increasing competition and uncertain regulations, Telstra focused on its key strengths as an integrated carrier, specialising in providing high quality services and technical applications. Chinese telecommunications companies already have their own networks but are looking to improve efficiency by going beyond basic voice services. Telstra believes that it is well placed to meet these emerging needs through the value-added services it already offers.
Telstra believes frequent changes in complex laws and regulations create risks for telecoms firms. Also, to receive preferential tax and customs treatment, authorities have insisted firms undertake manufacturing investment; this disadvantages Telstra which focuses on services activities. Despite these challenges, Telstra remains confident of its strategy in the China market.
Source: Telstra, 2002.
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