| Australian telecommunications carrier Telstra is
consolidating its formidable array of Internet assets in preparation for
the long-awaited announcements of its partners in building its portal site.
The company last week exercised its option to buy out minority owners of
Pacific Access, which operates the most popular Web site in the country,
the White Pages telephone directory, as well as the Yellow Pages commercial
directory -- in addition to print versions of both -- and also the Australian
version of the Alta Vista search engine.
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Telstra CEO Ziggy Switkowski also made a speech at a business lunch in
Brisbane last week where he hinted at the directions the carrier would take
on the content side, including possible partnerships with media companies
like Fairfax and ecorp.
These movements come only weeks after Telstra locked down its Internet
infrastructure policy when it named the suppliers for its Data Mode of
Operation (DMO) project.
The Pacific Access deal was the result of a 1991 contract which established
the business as a joint venture between Telstra and four smaller companies.
Two of those were bought out by Telstra in 1997, with Bell ActiMedia and
Edward H. O'Brien retaining 12.5 percent stakes. Pacific Access will now
become a wholly owned subsidiary of Telstra, continuing to operate as a
separate entity.
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Australian media companies such as Fairfax, ecorp, News Limited have been
much more active than ISPs and telcos like Telstra and OzEmail in building
alliances and joint ventures for the local industry, but Switkowski
admitted Telstra was now in discussions with these and other content
companies.
One company will not be likely to be party to discussions, however -- ecorp
has just dropped a deal worth AUS$4 million (US$2.6 million) to provide
content to Telstra.
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