The ATT Joint Venture

The AT&T Joint Venture

In 2001, AT&T became the first international carrier to form a joint venture (JV) since China joined the WTO, with a company called Shanghai Symphony Telecom. AT&T has a 25 per cent stake in the JV. Shanghai Symphony Telecom intends to offer broadband and IP services, such as Virtual Private Networks (VPNs), as well as managed hosting and other related professional services.

Historically, JVs in the telecommunications industry have not been universally successful and there are numerous examples of failure. Of particular relevance, perhaps, is the failure of Concert, the JV between AT&T itself and British Telecom, aimed at providing global telecommunications services to multinational clients . The AT&T JV in the Shanghai Symphony Telecom project has yet to be tested . Both parties to the JV will need to demonstrate their commercial interest and commitment if success is to be assured. Nevertheless, it is to be hoped that the project is indicative of the opportunities that will exist in the future.