Netcom buys 4 regional networks
13 September 2005
China's second-largest fixed-line telephony operator, China Netcom, has agreed to purchase four provincial networks from its state-owned parent company for US$4.5 billion, the Financial Times reported. The four northern provinces of Jilin, Shanxi and Heilongjiang provinces and the Inner Mongolia Autonomous Region have 30.5 million are fixed-line subscribers - a penetration rate of 24.9 percent. Netcom's chief executive Edward Tian said the company would need to focus on broadband, corporate clients and value-added services. Although Netcom's fixed-line growth has been slow this year, the company cited Xiaolingtong, its limited wireless service, as its recent success story Xiaolingtong's network of customers grew 45.4% to 18.1 million in the first half of 2005.