Telstra agrees to buy Digicel Pacific

Revamp plan: A man uses a mobile device near a Telstra public telephone in Sydney. The former government-owned telco has been trying to restructure its operations as it faces persistent headwinds on its fixed-line business. — AP

SYDNEY: Telstra Corp Ltd said it has agreed to buy the Pacific operations of telecom firm Digicel Group in a US$1.6bil (RM6.7bil) deal largely funded by the Australian government and seen as a way to block China’s rising influence in the region.

The government will front US$1.33bil (RM5.53bil) of the total value, with Telstra contributing the rest, the Australian telco and a government statement said.