Connectivity Briefs: Telstra, 3Com

Connectivity Briefs: Telstra, 3Com

Telstra to sell MGTI shares

Telstra will sell its 20.4 per cent shareholding in Mitra Global Telekomunikasi Indonesia (MGTI) within three months, subject to obtaining regulatory approval and satisfying other cond­itions. MGTI was formed in 1995 under the Indonesian KSO Partner strategy and was commissioned to build and operate a fixed line network in the Central Java region for 15 years. Telstra has had a stake in MGTI since the company was established but shareholders have now agreed to accept a cash offer of $US266 million from PT Alberta Telecommunication, a subsidiary of Saratoga Investama Sedaya. However, the final price will be calc­ulated according to methods agreed by all parties as applied to the MGTI balance sheet prepared after closing.

3Com rolls out its first WAN router

Networking vendor 3Com has introduced its first WAN router line. The rollout of the Router 5000 series for mid-size users and branch offices of larger companies follows a 3Com announcement last month that it planned to outsource all manufacturing of its enterprise networking products. 3Com, which will lay off about 1000 of its 3100 workers as a result of the outsourcing decision, also said it was shifting development of low-end volume products to a new facility in Taiwan. The company is trying to regain its position as a leading vendor of corp­orate networking equipment after temporarily abandoning that market three years ago. But 3Com faces stiff comp­etition from bigger rivals like Cisco Systems, and it is also trying to rebound from losses that totaled $US283.8 million in its last fiscal year and $US106 million in its first quarter of 2004, which ended on August 29.

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