Quickbites

BT launches global tie-up with AT&T

British Telecommunications PLC announced on Sunday that it planned a $ 10 billion global joint venture with America’s biggest carrier — AT&T Corp — in a deal to create a major new force in world telecom. BT, Britain’s biggest telephone group, whose transatlantic strategy was left in tatters after a failed merger last year with America’s MCI Communications Corp, said the new 50:50 joint venture would be completed within 12 months. In an attempt to capture the lucrative business of high-spending multinationals, BT and AT&T are pooling international assets into a new company which will have around 5,000 employees and annual revenues of more than $ 10 billion in the first full year. Operating profits of around $ 1 billion in the first year are expected, growing at 15 to 20 per cent per year. The venture would contribute to both BT and AT&T’s earnings from day one, the groups said in a joint statementissued in London.

"Future Cola" to take on Coke, Pepsi

A leading Chinese soft drinks company has initiated a fierce cola war against American giants Coca Cola and Pepsi by introducing its new brand "Future Cola", the official China Daily Business Weekly reported on Sunday. "Promoting it as China’s own cola, the company is trying to put the squeeze on Coca Cola and Pepsi," the paper said, adding that "Future Cola has sparked a fierce war in the country’s huge soft drinks market". According to figures reported by the newspaper, Coca Cola dominates China’s market with 57.56 per cent share while Pepsi comes a poor second with 21.29 per cent. The Chinese brands have a modest 21.15 per cent market share. "The emergence of `Future Cola’ is a normal action of market competition," the paper quoted a Coca Cola official here. But Pepsi’s Beijing office indicated that the launch of the new cola brand is a welcome development as it will promote the mutual development of Chinese and foreign soft drinkproducers.