Saturday it would register its joint ventures with Hong Kong's Pacific Century CyberWorks in Bermuda.

"Bermuda has been chosen for a number of reason. Firstly it has an internationally recognised legal system. It has a stable regulatory environment for holding companies,'' a Telstra spokesman said.

Telstra and PCCW sealed a pan-Asian alliance in October, creating an Internet Protocol networks company, a regional wirelss group and an international data centre company, with plans to flat a piece of all of item.

National newspaper, The Austrialian reported on Saturday that the groups plan to raise US$1.51 billion through stock market listings of a maximum of ten percent of each of the ventures within 12 months.

The newspaper, citing a shareholders agreement between PCCW and Telstra, said the network group was valued at UD$10 billion. The wireless group, valued at US$3.1 billion, was likely to raise US$310 billion.

Telecom venture The plan is a joint venture with Hong Kong-based Pacific Century CyberWorks, owned by Asian tycoon Richard Li.

The transfer, which includes Telstra's interest and ownership in around 50 submarine telephone and internet cables spanning the globe, could take place as early as Friday.

The two joint companies are registered as Joint Venture (Bermuda) No. 1 Ltd and Joint Venture (Bermuda) No 2 Ltd. One will handle internet business and the other a new mobile phone network.

The companies will based in Conyers, Dill & Pearman's law offices in Hamilton.

The Weekend Australian story said the Island is used by ''thousands of multinational companies to minimise their tax bills.'' Telstra's partnership in the construction of a new Japan-Australia subsea cable link is already based in Bermuda.

Telstra's main competitor, Cable & Wireless Optus, also uses Bermuda -- for the legal headquarters of its international internet cable joint venture with Telecom New Zealand, the story said.

A spokesman for Telstra said the company would still be liable for Australian capital gains taxes and tax laws governing Australian-controlled foreign businesses.

He added the Bermuda firms were holding companies, while actual business would be carried out in Hong Kong.