Metromedia in Joint Venture For Phone Equipment in China
May 04, 2011
NEW YORK -- Metromedia International Group Inc. and Golden Cellular Corp. of China formed a joint venture to offer telephone equipment and technology for state-owned telephone operating companies in China. People familiar with the situation say Metromedia is spending about $25 million on the venture in its first two years. In a news release, Metromedia International said the joint venture, Mei Ti-Jinfeng, recently received its business license to provide wireless local loop telephone equipment and systems technology, software services and maintenance to public and private telephone networks throughout China. China has a 4.7% telephone penetration rate, compared with 60% in the U.S., Metromedia said. The pact marks the company's first telecommunications venture in Asia. Metromedia also has interests in the entertainment and media industry. In composite trading on the American Stock Exchange, the company's shares closed at $11.50, down 37.5 cents.
