Video-link partners consider equity deal
United States-based PictureTel has left open the possibility of forming an equity venture with strategic partner New T&T.
The two companies have formed an alliance enabling New T&T to exclusively provide PictureTel video-conferencing products to commercial users in Hong Kong.
Although the arrangement does not include equity, PictureTel chairman Norman Gaut did not rule out the possibility.
'We saw tremendous potential in Asian corporates using video transmission devices, especially with the broadband community,' Mr Gaut said.
New T&T, owned by Wharf (Holdings), will pay service fees based on a percentage of sales for the right to provide PictureTel's interactive visual devices, dubbed iVIDEO.
Both companies said the fee structure was initial and aimed to promote the popularity of video-conferencing.
Internet application services generated revenues of US$100 million worldwide in 1998 but this is forecast to grow to $6.5 billion next year, according to a survey by Forrester Research.
Stephen Ng Tin-hoi, New T&T chairman, confirmed the firm had been approached by other parties, but stressed it had no plans at present to find more strategic partners.
This is the second tie-up this week between a Hong Kong conglomerate and a US strategic partner after Hutchison Whampoa linked with Priceline.com on Wednesday.
