Tata Comms calls off China JV

Robert Clark
telecomasia.net
Tata Communications has abandoned its planned joint venture with China Entercom, citing regulatory reasons.
 
Srinivasa Addepalli, Tata’s senior vice president corporate strategy, said the two parties had agreed to withdraw their application “due to the uncertainty” of obtaining regulatory approval.
 
The Indian-based enterprise and capacity carrier said the two companies would continue to provide VPN and Ethernet services to major Chinese cities.
 
“China is a priority market for Tata Communications and we will continue to actively evaluate long-term investment opportunities in this region,” Addepalli said.
 
China Entercom COO Sun Yinghong said, “This mutual withdrawal of the EJV application will not deter us from working closely with Tata Communications to provide a superior class of network services to our customers in China as well as to those businesses seeking to expand into the country.”
 
China Entercom, owned by red-chip investment group CITIC, operates a fiber backbone network across China and holds licenses for IP-VPN and other value-added services. 

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