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Netcom ready for new challenges
[ 2005-05-18 12:56:51] | China Netcom, the country's
second largest fixed-line operator, is ready to embrace new changes, just as
soon as Chinese telecom regulators finalize plans for industry-wide reform.
In an exclusive interview, Vice-Chairman of China Netcom Edward
Tian told China Daily he believes Netcom and other telecom operators will
benefit from the changes.
He said: "I believe the upcoming
adjustment will definitely improve the current telecom situation and help
optimize the industrial structure. It will do good to all domestic telecom
operators in the long run.
"We are waiting for the regulators
decision on the reshuffle as there are still no official policies related to the
telecom adjustment and 3G issues."
It was reported early last
month that China Netcom is to merge with China Unicom's GSM (global system for
mobile communications) cellular network, with China Telecom purchasing China
Unicom's CDMA (code division multiple access) network.
Analysts
said they believe that if China Netcom acquires an existing mobile telecom
network, it will allow the carrier to break into the mobile business and lay a
solid foundation for future 3G development.
The split of China
Unicom is likely to lead to the issuing of three 3G licences when China kicks
off its 3G implementation.
Along with other telecom operators and
equipment providers, China Netcom has long been involved in the 3G-related test
organized by the Ministry of Information Industry.
And rumors are
rampant that the Chinese Government is likely to roll out the telecom reshuffle
and 3G licence later this year.
"We don't have a timetable to
launch 3G services as there is still no official word on when the telecom
reshuffle and 3G implementation will take place," said Tian.
"But
we are quite confident that we will be able to secure a 3G licence because China
Netcom has made brilliant achievements.
"We are very confident on
the 3G as our Hong Kong-listed company has abundant cash flow, many options for
fund raising and strong support from our parent company," Tian added.
According to the vice-chairman, China Netcom will work cautiously
on 3G network planning and business strategies.
"Investment return
will be our focus after the granting of a 3G licence. We won't make blunt
investment," he stressed.
China Netcom will continue to focus its
business strategies in areas such as broadband and Internet business and
international business.
To further its broadband business, China
Netcom formed a strategic partnership with PCCW by buying a 20 per cent stake in
PCCW for US$1 billion in January.
"It is a win-win deal for us as
we are quite complementary in areas of technology, market and services," Tian
said.
China Netcom is seeking co-operation with PCCW in the areas
of broadband video conferencing, international business, mobile business, Yellow
book services and real estate, he added.
The two firms also said
they would set up a joint venture on the Chinese mainland.
"We
will not step into content-related services as we seek enhanced co-operation
with content providers, equipment providers and other partners to roll out more
new and value-added telecom services to meet customer demand," Tian said.
"Meanwhile, we welcome foreign telecom operators to come to the
Chinese market for possible co-operations."
Analysts believe that
seeking co-operation with domestic telecom operators may be the only feasible
option for foreign telecom operators seeking to enter into the Chinese market.
Most of the world's telecom operators, they believe, are unlikely to invest
heavily in China because of investment controls and higher expectations from
their shareholders.
(China Daily)
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