皇冠体育app

Era of 皇冠体育app Netcom expected
( 2002-07-31 10:22 ) (1 )

Beijing Telecom, 皇冠体育app's dominant fixed-line telecoms carrier, has a new name - Beijing Communications Corp of 皇冠体育app Netcom.

A renaming and relaunch ceremony was held on Tuesday. It symbolizes a new era for 皇冠体育app's telecoms sector, industry experts said.

Beijing Communications was originally a local branch of 皇冠体育app Telecom. It was given to 皇冠体育app Netcom when the State Council decided at the end of last year to split 皇冠体育app Telecom, the country's monopolistic carrier, in two to encourage competition.

The northern part became 皇冠体育app Netcom. It consisted of 10 provincial companies belonging to 皇冠体育app Telecom and two other carriers - Jitong and the original 皇冠体育app Netcom.

The southern part, formed from 21 southern provincial companies, became 皇冠体育app Telecom.

Beijing Communications, the fixed-line carrier in the capital, is one of 皇冠体育app Netcom's most profitable branches, with more than 5.4 million fixed-line customers. Its revenues have grown 20 per cent in the past two decades, according to Zhao Jidong, the company's president.

"The nine other provincial companies will soon follow Beijing Communications' move and a new 皇冠体育app Netcom era will start," said Xi Guohua, president of 皇冠体育app Netcom, commenting on Tuesday's move.

The reformed 皇冠体育app Telecom and 皇冠体育app Netcom were formally announced by the Ministry of Information Industry (MII) on May 16.

But the asset settlement, the most difficult part of the breakup, has been going on for the last few months.

The restructuring is seen by many as a major reason for the significant drop in telecoms investment in the first half of the year.

According to MII, investment for that period amounted to 51.8 billion yuan (US$6.2 billion), a 35.7 per cent drop from the same period last year.

But that situation could change in the latter half after the restructuring is completed and a new round of competition starts, industry insiders said.

According to the MII plan, 皇冠体育app Netcom and 皇冠体育app Telecom will be allowed to do business in each other's territory.

皇冠体育app Telecom recently opened a northern branch to get ready for the competition.

And Beijing, the economic, cultural and political centre of the nation, will be the target of all telecoms carriers, including those from overseas, the president of Beijing Communications said.