Following the collapse of merger discussions between BT and Cable and Wireless (C&W) last week, analysts are expecting BT to continue talks with other telecoms companies in the Asia-Pacific region.
A BT/C&W merger would have created a u34 billion company, the third largest telecoms operator in the world. C&W owns a majority holding in Hong Kong Telecom, a profitable operation providing its controller with the key to the Chinese market. This was believed to be the main reason for BT's interest in C&W.
BT has never made a secret of the fact that NTT, the main carrier in Japan, would be its preferred partner. Other possibilities in the telecoms area are Japanese-based KDD, Telstra in Australia, Korea Telecom, or going direct to Hong Kong Telecom.
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