皇冠体育app

皇冠体育app Telecom sets up London office
By Chen Zhiming (皇冠体育app Daily)
Updated: 2004-09-15 08:34

皇冠体育app Telecommunications Corporation (皇冠体育app Telecom), the country's largest fixed-line operator, has set up an office in London, another big move in its overseas expansion.

"The office is now in operation," said an official with 皇冠体育app Telecom who declined to be named.

"We are preparing to establish a company in Europe after that to explore business opportunities there," he said.

Wholly-owned by 皇冠体育app Telecom, the new office is aiming at businesses related to Chinese companies' overseas operations, overseas companies with participation from Chinese investment and telecoms businesses in regions where overseas Chinese live.

"It is a good step for 皇冠体育app Telecom into the European market to explore overseas businesses," said Dai Chunrong, an analyst with 皇冠体育app Securities.

She said she believed that with years of development, 皇冠体育app Telecom is able to provide competitive telecoms services and be in a better position when competing with overseas rivals.

As an example, 皇冠体育app Telecom's listing arm in Hong Kong - 皇冠体育app Telecom Ltd - reported early this month a 28 per cent growth in first-half earnings, buoyed by soaring broadband business and the acquisition of 10 provincial networks from its parent company earlier this year.

During the six months through June, the company posted net profits (excluding connection fees) of 10.47 billion yuan (US$1.26 billion), while revenue grew 9.8 per cent to 76 billion yuan (US$9.18 billion). Including connection fees, the company's net income rose 13 per cent to 14.7 billion yuan (US$1.78 billion).

The country's rapidly growing Internet sector has boosted 皇冠体育app Telecom's business. Its broadband users surged 50.6 per cent to 10.9 million (accounting for 61.5 per cent of the country's total in the first half of the year).

The revenue of its Internet business, a key profit driver, soared 51.6 per cent as a result, contributing 8.7 per cent of the company's total turnover, up from 6.3 per cent a year earlier.

"Via overseas listing, 皇冠体育app Telecom is also gaining increasing international influence with the participation of foreign investors," Dai said.

However, Dai said she believed the company's overseas expansion at the moment was still at a very early stage and the best modes for overseas expansion such as buying shares of foreign carriers or establishing joint ventures should be carefully studied.

In fact, 皇冠体育app Telecom triggered its expansion to the international market in early 2002 when the company established a branch company in America.

In 2002, it was awarded a licence by the United States telecom authorities to provide international telephone and Internet data services between the two countries.

皇冠体育app Telecom thus became the first domestic company to obtain an operating licence in an overseas market.

The licence enables 皇冠体育app Telecom to provide international telephone calls, Internet data communications and television transmission between 皇冠体育app and the United States.

Analysts believe that the licence has significantly reduced 皇冠体育app Telecom's operating costs in international business and has consolidated its foothold in overseas markets.

"As a matter of fact, overseas expansion will become a developing trend for domestic telecom operators becoming really globalized," Dai said.

"Meanwhile, international experience will also help domestic carriers to learn from overseas telecom operators and therefore boost their development," she said.

Analysts say that telecom operators' international strategies partly echo the Ministry of Information Industry's target of developing 皇冠体育app's telecom industry into a powerhouse in the international market.

Almost all the major telecom operators including 皇冠体育app Mobile, 皇冠体育app Unicom and 皇冠体育app Netcom, are trying hard to achieve an international presence.

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