AT&T: Will their China-India invasion plan work out?

Thirteen is the percentage point by which AT&T, U.S.’s largest telephone operator, increased its budget for investments outside of the U.S.

According to AT&T’s Asia Pacific President Gopi Gopinath, plans are in motion for the telecommunication giant to invest an additional $100 million this year to upgrade its networks among other projects. In March, AT&T estimate investments of about $750 million would be pumped into overseas markets including India, Pakistan, Vietnam and Malaysia.

“Everybody thinks about China and India and it is a very important part of our growth. There is always a spotlight on specifically these two countries and on Asia as a whole.'' Gopinath said.Revenue from China, the company's fastest-growing market, may rise 30 percent this year, meeting last year’s growth.

Half of AT&T’s China revenue is collected from venture Shanghai Symphony Telecom Co. and the remaining from China Telecommunications and China Network Communications Group. In April, the company opened its fourth office in China in the southern city of Shenzhen, and in October won licenses to sell long-distance call services to large businesses in India.AT&T will offer mobile-phone services to India and China, when the two nations open up to foreign operators. The company may also offer wireless services in India. As of end June, China had 372.7 million fixed-line phone users and 501.7 million-mobile users, according to China's Ministry of Information Industry.

AT&T signed an agreement with China Netcom to offer telecommunications services between China and the U.S. for the Beijing Olympics. This agreement would allow AT&T to provide a private leased line for NBC to transmit digital TV broadcasts

Despite its throngs of success, it may be audacious for even AT&T to think it can sink its teeth into China and India’s colossal mobile markets. The big boys, China Mobile and Bharti Airtel have more than 750 million subscribers between them, hardly the meek ones who will sit on the fence when the China government finally decides to wave the foreign players in.
With the Asian players snatching lucrative contracts everywhere, will they be able to continue their market domination in the advent of western power?