< On the planned third generation mobile phone network project, Yang said his company's
attitude toward the US-based CDMA technology is positive, and is planning to use CDMA for
its 3G systems.
CDMA has unique advantages of its own, though compared with the more mature GSM
technology, CDMA is comparatively new, Yang said.>
China Unicom raises US$4.9 billion via HK and NY listing
(06/24/2000)
China Unicom's successful overseas listing is the fruit of China's enterprises reform, and at
the same time, will be a stimulative to further reforms, Unicom's chairman and CEO Yang
Xianzu said.
China Unicom, the second largest telecommunications provider in China, has just made a
strong debut on the United States and Hong Kong market, with the stock rising nearly 10
percent from the initial (IPO) price.
Yang, who was in Hong Kong for the company's Hong Kong debut, believed that "without the
deepening of China's enterprises reform, there would be no overseas listing for China Unicom."
Overseas listing is a good way to raise money for Chinese enterprises, the CEO said, adding
that it will help optimize enterprises' capital structure, reduce debts and set a sound
foundation for future development.
Yang also considered overseas capital markets very promising. ``The overseas capital market
is very big and the scale of Chinese enterprises' overseas fund-raising is small," he said. "I
believe there is huge potential for Chinese enterprises to raise money overseas and the
prospect is very encouraging."
Unicom is planning to invest 100 billion RMB (US$12.82 billion) into telecommunications
infrastructure in the next three years, Yang said. The US$4.9 billion raised from its US and
Hong Kong listing will be of great help to the company's development plans, he said.
After listing on overseas markets, China Unicom will become an international company and
face fierce competition from outside, which demands the company establish new mechanisms
and increase the transparency of its operation, all of those are helpful to the company's
development, Yang said.
Admitting there will be increased pressure after Unicom's overseas listing and with the
deepening of opening-up of the domestic Telecom market, Yang said his company has geared
up for future challenges.
The company's development priorities in the coming years will be speeding up development,
increasing the size of the network and bettering the networks, Yang said.
Besides, the management of the company should be strengthened, new businesses should
be developed, he said.
Going into more details of the company's development plans, Yang said Unicom is planning
focusing more efforts and resources on the development of the company's mobile business.
Of the US$4.9 billion from the company's US and Hong Kong listing, 67 percent will be used
in the building of mobile telecommunications networks, 30 percent in long-distance and data
networks, and only a small sum will go to the paging business, Yang said.
On the planned third generation mobile phone network project, Yang said his company's
attitude toward the US-based CDMA technology is positive, and is planning to use CDMA for
its 3G systems.
CDMA has unique advantages of its own, though compared with the more mature GSM
technology, CDMA is comparatively new, Yang said.
He said Unicom is now studying the 3G CDMA test network programs, and once conditions
are ripe, it will begin trails on the network.
The chairman also expressed confidence in the expanding market share of Unicom and the
huge potential for the development of the Chinese telecommunications industry.
The company, which was set up in 1993, has seen a stable increase in its domestic market
share, from a 3.6 percent in 1997, to 7.4 percent in 1998, then 14.2 percent in 1999, he said.
The figure this year is expected to reach 22 percent.
In April this year alone, subscribers to China Unicom increased by 800,000, Yang said,
adding that to date the company's mobile Telecom network subscribers had reached 10.1
million.
"The biggest advantage of our company is that we are the integrated telecommunications
provider in the fast growing telecommunication market in the world," Yang said.
He said that China has the biggest population in the world and the market potential is huge,
which is the reason why foreign investors are optimistic about Chinese telecommunications
companies.
Mobile phone subscribers in China are expected to reach 68 million to 70 million by the year
end, and the mobile phone penetration is 5.4 and 5.5 percent, according to Yang.
While in some Northern European countries, the penetration rate even has reached 60 to 70
percent. "Just image what a huge potential China is having for telecommunications
development," Yang said.
(Xinhua) |
