Aussie network joins AOL-AAPT venture

By Phil Boeyen, ShareChat Business News Editor

Monday 10th December 2001

Listed Australian TV company, Seven Network, is joining Telecom's (NZSE: TEL) AAPT subsidiary to help run the powerful America Online brand across the Tasman.

AAPT entered an initial joint venture arrangement with America Online last year but now a new holding company comprising the three partners is being set up to operate the service.

AAPT, Seven Network and AOL will each have a one-third holding in the new company, to be renamed AOL7. The online service will continue to be marketed under the AOL brand, which has been offered in Australia since 1998.

AOL president, Michael Lynton, says the business has experienced rapid growth in Australia over the past eighteen months.

"With today's announcement, we are well positioned to take the business to the next level of success.

"With our shared commitment to meeting the needs of consumers, this expanded partnership with Seven Network and AAPT will define the best online experience for Australian consumers."

Mr Lynton says Seven Network is a market leading media company, AOL has industry-leading content and AAPT contributes robust network infrastructure to extend the service's reach.

"With its large customer base, AAPT also provides a wide range of sales, marketing and distribution channels"

Seven Network boss, Kerry Stokes, says the new agreement places AOL7 at the forefront of new communications in Australia.

"AOL and AAPT's decision to bring Seven to join the AOL7 joint venture underscores our success in the creation of online content with i7, and our acknowledged capabilities in leveraging our broadcast television audience and all aspects of our integrated media businesses."

Chairman of AOL7 and AAPT chief operating officer, David Bedford, says the expanded joint venture is in a very strong position to continue to lead the market development for online services in Australia.

"The Telecom New Zealand Group is delighted to welcome Seven Network as a partner along with America Online as we look to grow our presence in Australia. Seven Network will contribute substantial value and a suite of powerful assets to the AOL business."

The new company underscores Telecom's desire to be a major player in the Australasian telecommunications and online industry and is a further stepping stone into the media sector.

Telecom already owns a stake in New Zealand-listed pay-TV operator, Sky Network Television (NZSE: SKY).

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