Canada firm strikes deal on telecoms

DESPITE the absence of Beijing's approval on foreigners operating telecommunications network, MTC Electronics Technologies Co of Canada has announced ambitious plans to enter China's mobile telecommunications market.

The company yesterday said it had struck a deal with China Satellite Launching, Tracking and Control Central and a Hongkong investment firm to form a joint venture that would engage in telecommunications services and manufacturing throughout China.

Without disclosing the financial details, MTC said it would take a 51 per cent stake in the venture with the mainland and Hongkong partners holding the rest.

However, telecommunications experts raised strong doubts about Beijing's willingness to open up the sector to foreign investment.

A senior official at a leading Hongkong telecommunications group said: ''While foreigners have already been allowed to form joint ventures to produce telecommunications equipment, networking is still a forbidden area.'' Another party, who closely monitors the mainland market, also said China's Ministry of Post and Telecommunications was known to be strongly against the idea of putting the telecommunications network outside its control.

''On the paging business, the foreigners are only allowed to be passive investors, who can invest their money but not participate in the operations,'' he said.