Did China Mobile rumours lead Australia to make a wrong call over Digicel?
- Canberra is supporting a plan to buy the South Pacific’s top phone carrier for US$1.1 billion, amid claims that Chinese ownership could facilitate spying by Beijing
- But it’s unclear if China Mobile has ever had any interest in Digicel, leading some observers to question if Australia has been used by forces with agenda of their own
Chinese ownership of the telecommunications infrastructure, one anonymous source warned, would effectively mean “game over” for Canberra’s efforts to counter Beijing’s growing influence in the hotly-contested region.
After months of reports about Canberra seeking ways to block the deal, Australian telecoms firm Telstra on July 19 confirmed it was considering a bid to buy Digicel, which is owned by Irish billionaire Denis O’Brien, in partnership with the Australian government.
Under the government’s proposal, the purchase would be supported with a taxpayer loan of A$1.5 billion (US$1.1 billion), with Telstra forking out just A$200-$300 million to take over the Jamaica-based telecoms firm, which operates in 32 markets in the Pacific, Central America and the Caribbean.
Canberra’s intervention elevated the carrier into the latest symbol of the escalating competition for influence in the Pacific between China and Australia, a close US ally.
Yet the extent of China Mobile’s interest in purchasing Digicel – if it exists at all – remains murky, leading some observers to question whether Canberra has been used by forces with agendas of their own.