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China's 263 Buys Stake In America's iTalk Global Communications
December 16, 2008 |
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According to local media, the Chinese Internet and communications technology company 263 Network Communication Co. Ltd. has bought a 50% stake in the U.S. telecommunications operator iTalk Global Communications, marking 263's entry into the North American VoIP market.
Sources close to 263 Network Communication says that the two companies signed a cooperation letter of intent in September 2008 and the cooperation was recently approved by the relevant departments in China.
As a leading VoIP service provider in the United States, iTalk has a wide user base in the North American Chinese VoIP market. It currently provides VoIP services in the United States and Canada.
Unlike traditional telecommunications services, VoIP is a cheap and convenient communications service which is mainly realized via the Internet. The service is not fully available in China, but the industry has a good perspective in the future. Through the acquisition of iTalk, 263 Network Communication can accumulate relevant experience that may prove useful in China. Once the service is opened in China, the company will have a unique competitive advantage.
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