What made Netcom buy PCCW stake?

The worst-kept secret in Asian M&A was finally announced yesterday when China Netcom declared its intention to buy 20% of PCCW. In doing so it is dipping its toe in what many will regard as one of the world's most difficult telecoms markets - indeed, a market so difficult that the operators and the regulator (OFTA) frequently take pot shots at each other in the media.