Global Economics

Cisco's $7.5 Billion China Spree


Among the Asia telecom news this week, the U.S. networking equipment maker announced a multiyear China investment initiative

It was the week when Google went social and John Chambers promised to spend big in China.

Google is taking on Facebook with its OpenSocial platform, which as expected offers APIs for applications around social networking data. But it has also, in a sociable way, invited other networking sites like LinkedIn to get on board. The Rupert Murdoch-backed MySpace has already joined the party.

Google is close to a breakthrough in its foray into the mobile world, with the company reportedly near a deal with Verizon Wireless and Sprint over the new Google phone and OS.

Another paradigm-busting phone made its first appearance, with Skype unveiling its first handset, to be sold exclusively by 3. The phone, featuring a prominent Skype button, will go on sale by Christmas.

Cisco chief John Chambers revealed a swathe of China initiatives that he said could add up to as much as $7.5 billion in the coming years. These include a promise to boost local sourcing and to invest in training, IT and green technology in China.

The networking company kicked $17.5 million into Alibaba's IPO and signed an MoU promising to explore ways of working with the Chinese B2B firm.

Alcatel-Lucent's CFO has stepped down after yet another poor quarter from the embattled US-French vendor. The company announced its third straight quarterly loss and cut its guidance. Another 4,000 jobs will go.

Indian carrier and global bandwidth player VSNL, soon to be known as Tata Communications, is building a $200 million cable between Singapore and Japan. The 3.8 Tbps system will link its existing trans-Pacific and India-Singapore systems.

US broadcasters began their trial of their YouTube alternative Hulu, while Chinese online games firm Giant Interactive raised $887 million in its NYSE debut.

The Chinese government has issued an arrest warrant for a Taiwanese man they accuse of hacking into military and other web sites.

And an expert says if you want to keep your privacy, get a homeless person to buy your mobile phone.

Provided by Telecom Asia—Copyright: © 2006 Questex Media Group, Inc. > All right reserved.

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