Transcom International Limited (TIL) in Australia and joint venture partner the telco Xinhua in China are to launch telecommunications services between the two countries on July 1.
Xinhua is the commercial arm of China's Xinhua News Agency.
Estimating the market for telecomms services between the two countries to be worth $200 million a year, TIL is hoping to grab a 25 per cent market share in its first 24 months of operation.
Peter Malone, Transcom group managing director, said his company plans to sign interconnect agreements with Australia's leading carriers, as well as sign up businesses, government departments and consumers who call China frequently.
TIL is building gateway facilities in Perth and Sydney, at a cost of around $6 million, incorporating switching, satellite earth station equipment and interconnect capabilities.
The company outsourced design of the gateway facilities to Australian telecommunications consultants Amos Aked & Swift and Gibson Quai. Equipment specifications for the facilities are complete and Transcom will be sourcing equipment over the next few weeks, Malone said.
TIL plans to purchase half of Xinhua's 50 per cent stake in the joint venture in July, and the final 25 per cent in December.
Meanwhile, the company plans to seek shareholder approval for a name change, to New Tel Limited, to better reflect its goals. The corporate and operational structures of New Tel are under consideration.
The company has appointed Deloitte Touche Tohmatsu to work with Amos Aked & Swift to headhunt key personnel with experience in the telecommunications sector, including a chief operating officer, chief financial officer and an in-house counsel.