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Telecom firm working on going global
By Chen Zhiming (China Daily)
Updated: 2004-09-20 08:38

Going global, a strategy that China Network Communications Group Corp (CNC) has embraced for years to become really competitive international, is no longer just a slogan.

"We see a new growth area as there is more international telecommunications traffic originating from or terminating in China, since China has become a global manufacturing powerhouse and emerged as a leader of the regional economy," said Edward Tian, chief operating officer of China Netcom.

"Regionalization has in fact become a significant trend for the telecoms industry," he said.

International business is witnessing a dramatic growth in Asia-Pacific regions especially among China, South Korea and Japan.

To tap market demand, the company has already strengthened regional strategies in seeking further overseas expansion.

"The challenges in front of us are how to provide regional customers with regionalized services," he said.

Tian said the company is to work with its subsidiaries and international partners to become an influential regional telecommunications player, and reaching out to major cities in Asia.

Given the recovery of the global telecoms industry and a sound national economy, Tian is very confident about the growth of its international business.

At present, the company's main international businesses are from two areas - inbound business brought by foreign providers and outbound business launched in China.

"All the internal adjustment for international business has already finished and we are ready to take off," said Tom Wei, senior vice-president of CNC International, a subsidiary of China Netcom.

Currently, the company has rolled out eight categories consisting of 33 international products which basically cover all international data and voice services. It has developed inbound business and established business relations with 140 international telecom providers across the world.

"We will strengthen support for our key products and establish an image as superior quality service providers and become the leading brand in China for international communications by providing high-quality services in Northern provinces and competitive services in southern provinces," he said.

Company sources show that the company has a total international bandwidth of 150 gigahertz.

CNC International owns three international gateways, three submarine-cable-landing stations, four land-cable frontier stations, one satellite ground station and six overseas POPs (points of presence).

Through its cable system, CNC International's network can access major Asia-Pacific countries and regions and cover other areas in the world, including Europe and Africa.

CNC International has also opened up direct routes to telecoms operators in more than 70 countries and regions. Its voice network reaches more than 200 countries and regions.

China Netcom will also take advantage of its partnership with the organizing committee of Beijing Olympics 2008 to carry out broadband development, says Tian.

The company signed an agreement with the organizing committee in July to provide fixed-line telecoms related services.

"The Olympics will serve as a great impetus to boost broadband development in China," he said.

He said he believed broadband users in China are likely to reach a critical mass in years to come.

The growth will spring mainly from individual users and enterprise users as well as the growing number of Internet cafes.

"Also, China Netcom is going to seek greater co-operation with Internet content providers to roll out a full range of services to meet customer demand," he said.

Zeng Jianqiu, a professor with Beijing University of Post and Telecommunications, believes that China Netcom is on the right track to focus more on its international and broadband businesses.

He said China Netcom's international strategy was also likely to obtain strong support from government to enhance its overseas businesses as China is aiming to become a telecoms powerhouse via "outgoing" strategies from this year on.

China Netcom will probably float its shares in Hong Kong and New York stock exchanges next month.

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