China Netcom
From Wikipedia, the free encyclopedia
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| Type | State-owned enterprise |
|---|---|
| Founded | 1999 |
| Headquarters | Beijing, China |
| Industry | Telecommunication |
| Revenue | ▲ US$7.844 billion (2004) |
| Employees | 92,788 |
| Parent | China Unicom |
| Website | www.cnc.cn |
China Netcom, full name China Netcom Group Corporation (Hong Kong) Limited (former stock codes: HKEX: 0906, NYSE: CN), abbreviated CNC, was formed in August 1999 by the People's Republic of China government to enable inward investments to build high speed Internet communications in the country. It is a subsidiary of China Network Communications Group Corporation.[1]
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[edit] Sectors
It is a provider of wire-line telecommunications services in mainland China, mainly to areas in the north of China. The firm is building a new broadband Internet backbone across the country. It is widely seen as the number two fixed-line operator in mainland China after China Telecom, and operates a semi-mobile PAS or xiaolingtong system.
Traditionally services were provided by the company to northern Chinese provinces and large cities such as Shanghai, Guangdong, Beijing, Tianjin, Hebei, Henan, Shandong, and Liaoning, however they now have a presence in most provinces.
As well as offering ADSL internet services (not always available outside of north China), the company offers internet collocation services and is a leading provider of connectivity to China's so-called 'IP telephone' shops, who offer discount rate, walk-in telephony services to the general public across China.
[edit] History
The company started as a wholesaler for the high-speed data networks in 1999, headquartered in Shanghai. It was backed by Jiang Mianheng, Jiang Zeming's son, and Liu Chuanzhi, chairman of Legend Computers (now Lenovo). However, the business flopped partly because at the time China Telecom held a monopoly over the telecom market.[2]
Netcom was on the verge of bankruptcy. Fortunately for Netcom, with the backing of Jiang's son, the Chinese government broke up the China Telecom monopoly and granted Netcom a third of China Telecom's assets.[3] Most of those assets are located in the northern provinces.
[edit] Merger with China Unicom
On June 2 2008, Netcom announced its intention to merge with China Unicom, after the latter sold its CDMA network to China Telecom. The newly merged company therefore has all the assets of China Netcom, plus Unicom's nationwide GSM network with 125 million subscribers, as well as its smaller dial-up and ADSL ISP business[4]
China Netcom has been merged with China Unicom on 6 October, 2008. Thus it became a wholly-owned subsidiary of China Unicom and the listings of its shares on the Hong Kong Stock Exchange and its American Depositary Receipt Shares on the New York Stock Exchange will be withdrawn.[5]
[edit] See also
- Communications in the People's Republic of China
- List of companies in the People's Republic of China
- Telecommunications industry in China
[edit] References
- ^ Yahoo profile. Accessed June 4, 2006.
- ^ Ghahremani, Yasmin (2001-11-02). "China Netcom's Big Connection". Asiaweek. http://www.asiaweek.com/asiaweek/magazine/dateline/0,8782,181179,00.html. Retrieved on 2006-10-21.
- ^ Pomfret, John (2002-08-17). "Lines Crossed in China". Washington Post. Archived from the original on 2002. http://www.hartford-hwp.com/archives/55/873.html. Retrieved on 2006-10-21.
- ^ China Netcom / China Unicom Press Release about Merger
- ^ China Netcom to be removed from Hong Kong's Hang Seng index on Oct 6
