China Telecom E-News, April 16-22, 2000
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2000. For more information visit
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Jitong To Invest RMB500 Million (US$60 million) on Internet Network Buildout
Jitong Communications Inc., one of the largest ISPs in China, plans to invest RMB500 million (US$60 million) to expand its Internet network coverage, and provide Internet access services to 100 to 250 Chinese cities through fiber optic networks.
Jitong has VoIP licenses in 12 cities, and the number will be increased to 22 cities by the end of this year. Jitong's business turnover has increased by 200 percent last year.
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China Sets Up Two Giant Groups in Telecom Sector
After more than two years of deliberation and preparations, the China Telecommunications Co. and the China Mobile Telecommunications (Group) Co. jointly announced their establishment. Minister of Information Industry Wu Jichuan said that the establishment of the two groups marks the
strategic restructuring and a new breakthrough in China's
telecommunications industry.
The registered capital of China Telecommunications (Group) Co. and the China Mobile Telecommunications (Group) Co. is RMB220 billion (US$26.5 billion) and RMB51.8 billion (US$6.2 billion), respectively, both ranking among the country's State-owned extra-large companies.
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Zhongtian Technologies Signs Fiber Optic Cable Supply Contract with Unicom
Jiangsu-based Zhongtian Science & Technology Co Ltd. recently won a contact from China Unicom for the supply of 1800 km fiber optic cables.
Zhongtian will provide fiber optic cables to several branches of China Unicom including Zhejiang, Guangdong, Shandong, Henan, Gansu and Inner Mongolia. The Zhongtian high fiber count, ribbon and ADSS cables have been deployed in the Guangdong Electric Network Center, the railway
communication networks, Shanghai fixed line network and in the Guangdong electric power system.
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China Hastens Three Gorges Construction, to include 2,260Km of Telco lines The government of Chongqing has decided to invest RMB45 billion (US$5.4 billion) to build a highway network in upcoming four or five years. Half of the highway network will cover the dam areas of the Three Gorges Water-Control Project. Along with the construction of 684 km of roads, the government also plans to build 2,260 km of power transmission lines and 3,312 km of telecommunications lines.
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Chinese President Tours ECI Telecom
President Jiang Zemin inspected the newest products of Israeli telecommunications companies during his visit to Israel in the final stop of his six-day visit to the Jewish state. Jiang toured ECI Telecom, an Israeli electronics company that has been doing business with China since 1984, eight years before Israel and China established diplomatic
relations.
The company was to present an array of new products to the Chinese leader and his large delegation. The company said almost all international calls originating from China are processed through ECI Telecom equipment, and that ECI also has moved into satellite services in China.
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Shaghai Extending Internet Access to Public Phones
The Shanghai Municipal Telephone Bureau has recently initiated a project that will make it possible for data communications to be accessed at roadside public telephones. The QuidwayA8010 access server made by the
Shenzhen Huawei Technology Co. Ltd. has been chosen to build the network platform. The project will also provide a unified Internet access platform to all ISPs of Shanghai, indicating a new stage of Internet access construction
in China. It will ease the big pressure of growing data calls on public service telecom network (PSTN).
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Bank of China Wins a Major Fee in Cable Deal
Controversy surrounds the role of the Bank of China in the merger of Pacific Century CyberWorks Ltd. with Cable & Wireless HKT Ltd. The controversy focuses on a US$9 billion syndicated loan to help find the merger. Because the loan was put together quickly, banks were offered upfront fees two to three times normal levels. The syndication was
declared a success last week, with 31 participants. But some lenders are less than happy, accusing Bank of China of taking a disproportionate share and going against industry practice. The loan, initially required US$9 billion, after the all banks had contributed, the final total was around
US$22 billion. Bankers assumed with the oversubscription of funds, equitable treatment of all lenders is considered standard. However, when the final allocation list was published, the lead banks' aggregate share came to 40.5 percent, or US$3.65 billion, of the US$9 billion.
Particularly eye-catching was Bank of China?s US$1.7 billion allotment, which bankers say far exceeded exceptions.
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* Policy and Social Changes
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