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Technology News
March 3, 1998
Unicom Outlines Strategy '98
by Wei Ke of China Daily
China Unicom is outlining a multiplied development strategy for 1998 in addition
to its fledgling mobile communications business, according to the top executive
of the company.
Li Huifen, president of China United Telecommunications Corp, announced that
her company will concentrate efforts in 1998 on constructing long-distance
networks and trying out local telephone networks in three major cities.
"At the same time, we will continue to keep GSM (global system for mobile
communications) as the pillar business for development," Li said.
China Unicom became the country's second telecom operator there years ago,
ending the era of China Telecom's monopoly, which is under the administration
of the Ministry of Posts and Telecommunications (MPT).
Using mobile communications as its break-out industry, China Unicom entered
the field of telecommunications with a considerable presence as a result of its
low prices and quality service, although it is still a small-time player compared
with China Telecom.
"We will, by the end of 1998, establish a GSM network covering major Chinese
cities," Li said, adding that the network will be centered in the Yangtze River
Delta, the Pearl River Delta and the Bohai Sea Ring regions.
"We expect to have 750,000 new GSM subscribers in 1998, making our total
number exceed one million by the year end," Li said.
The company estimates that more than 420,000 subscribers have registered so
far.
"In the area of long-distance communications, we will establish over 10,000
kilometers of optical cable in 1998," Li said, "and complete installation of
long-distance switching system in 25 major cities."
Unicom has completed construction of a number of backbone long-distance
networks in partnership with the Ministry of Railways, the Ministry of the
Electronics Industry and military sectors.
Insiders believe that end-users will benefit from the emergence of China
Unicom's long distance business as competition will finally lead to lower rates.
Unicom is believed to have helped bring consumers' costs down as a result of its
initial phase of competition with China Telecom.
Unicom finished the construction of a local telephone network in Tianjin last July
and similar work in Chongqing and Chengdu is expected to be completed this
year, bringing its line total to 50,000 kilometers, Li said.
In terms of paging, she said Unicom expected to begin operating in 58 cities by
the end of 1998 with two million subscribers.
Unicom offers paging in 27 cities so far and has over 700,000 users.
Li also envisions building data communications networks this year in such major
markets as Beijing, Tianjin, Shanghai, Guangzhou, and Shenzhen.
Sourced from: China Daily
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