PCCW’s move from the outskirts of the city in the United Kingdom high-speed Internet access service launched pilot program. Analysts believe that PCCW to enter the UK phone market will give the UK the local telephone companies such as BT Group, and brings a strong challenge. According to people from PCCW, said the company will next year launch in the UK, parts of Internet-based phone service, and this service may be packaged together to promote broadband services.

PCCW launched in the UK six months ago, U.S. companies based on IPWireless broadband wireless technology company, is currently the company is preparing the service will be more areas in the UK to promote. IPWireless network equipment as well as support for Internet phone services, these devices by UT Starcom for the production of PCCW. Just recently headed to the UK subsidiary of PCCW Limited, the UK broadband Ian – Stone (Ian Stone) revealed that, despite the IPWireless technology also supports TV service, PCCW has not been introduced but the service plans.

Stone also said PCCW will not build in the UK mobile phone networks. However, because of the company’s broadband service running on a cellular technology, so future users can be their own network coverage outside of the PCCW broadband services to the region. Another Hong Kong’s Hutchison Telecom carriers have been introduced in p  the north face outletare working to promote WiMax technology, which support more distant usiness of fixedarts of Europe, the mobile service.

Transition in the telecommunications industry, telephone, Internet and television are considered as operators want to settle down at all. Local market in Hong Kong, PCCW has already launched three services. With other traditional phone providers, PCCW also want to enter the emerging field of communications to make up the core bnorth face sale -line services revenue losses caused by falling.

In fact, PCCW in Hong Kong and the UK’s role differently. In Hong Kong, PCCW is a great influence and prestige of the traditional telecommunications busdiscount north face   wireless Internet access. Stone said, WiMax technology deployment will have omote iness. Not long ago, PCCW Hong Kong and even the courts, demanding the closure of rival City Telecom’s Internet phone service, because the latter used the company’s network infrastructure without making a corresponding compensation. PCCW in the UK is just a new phone company, which it hopes to pr   cheap north face    the Hong Kong courts is prohibited by VoIP telephone services. PCCW, meanwhile, has said that the company launch Internet phone service in the UK and it does not contradict our claim, because the company uses its own network.

Currently Intel and other companies north face storeto wait at least three years, PCCW can not this is allowed, so the company chose the technology similar to WiMax.

Credit Suisse First Boston that PHS will be significantly slower growth expected next year, Guangdong Province, the amount of PHS customers will be more this year, down 17% decline in Jiangsu Province, as much as 40%. Guangdong expects a wave of PHS in the amount of customer growth in the 2.3 to 2.4 million, next year will slow to 200 million, reduced up to 17%. The bank targets to maintain the price of Telecom’s 2.56 yuan per share, unchanged. Wave that, as the Mainland 3G may be launched in 2006, PHS equipment depreciation period of more than 10 years, and 3G equipment, the depreciation period of only 5-6 years, provided that the risk of PHS faced with a huge increase in this Telecommunications from the past have been provided 46 billion yuan of assets, but the capital gains have been maintained at 8% is evident.

Wave that, while the tendency of telecommunications management has made it clear that the first launch of the acquisition of 2G networks in order to reduce risk, but the final decision based on the hands of State-owned Assets Supervision and Administration Commission, which does not seem to agree to such acquisition as radical means to solve the problem. Also, I am afraid that the bank may be required in the establishment of telecommunications TD-SCDMA network, which is what the company does not want to see.

Bank of China International Securities believes that Guangdong Telecom began back in 2000 in Shenzhen to promote PHS service, but until early this year began in Guangzhou and other major cities to promote the wide range of services. As of the end of September 2004, 5.59 million PHS users in Guangdong total, higher than June’s 5.02 million, 3.78 million late last year and 2002 to 88 million. The average monthly household income from last year’s 63.6 yuan and 64.3 yuan in 2002 to slow down to 57.6 million. But Guangdong Telecom from August 2003 to PHS and fixed-line services from bundled service to Carnival and three fixed-line services will be bundled PHS number, the implementation calls benefits, so that the user’s fixed number of call minutes from the previous 320 minutes up to 454 minutes. The average monthly household income of 72 yuan from the previous 13% to 81 yuan (including long distance calls.)

Guangdong Telecom, Bank of China International high-level conversations with know, although the campaign in Guangdong 3G not yet been born, but the Guangdong Telecom has issued licenses for 3G make the time of preparation. Fixed assets in Guangdong Telecom 3G investment budget have not yet taken into account, but with the capital expenditure / income ratio decline, this year and next year respectively, will be less than 30% and 25%, plus expenses may PHS reduced capital expenditures now account for 20%, 3G financing should not be a problem. Guangdong Telecom will be targeted at high-end 3G market (mostly high-speed data service users) and mid-market (mostly for roaming calls service requirements of the users); the low end, sufficient to meet the PHS service. Maintenance of the telecommunications Outperform rating.

ABN Amro said recently visited several provinces of China Telecom’s company, also enhances the prospects for the telecommunications and defense capabilities of the mobile operator’s confidence. China Telecom to maintain a buy rating, target price of 3.30 Hong Kong dollars. China Telecom’s 3G strategy to Lyon Securities (Asia) has left a de tory burch flats  pilot) to improve the management level. Second, the company also plans to improve the function etory burch salestan. Once the project profitability may be injected into listed at exist. Fourthd Kunming, in the p impression, the strategy may include the acquisition of China Unicom (0762) of the GSM business, which will enable China Telecom in 3G business is more dominant. CLSA China Telecom’s target price to 2.65 HK dollar raised to 3.07, still think the stock is the industry favored stocks.

Here, at the end of China Telecom’s Executive Director and Deputy General Manager Li Ping is coming to visit the broker introduced the policy of listed companies. First, the company will reconstruct business processes (2002, Suzhou atory burch      of the fixed telephone terminal and improve the return on PHS, and to introduce more bundled services among the different services. Third, cooperation with foreign acquisitions and opportunities th tory burch shoes   , the expansion of 10 provinces in the north of the new fixed-line services market; fifth is being considered for overseas investment, such as the establishment of fixed-line joint venture in Kazakh tory burch outlet companies. The company also with France Telecom (FTE.PA / EUR 22.90, not rated) established a strategic partnership, joint research and development in Guangzhou, broadband TV.

April 1999: China Network Communications Co., Ltd. was established;

May 16, 2002: North-South split scheme for the China Telecom, China Netcom Group was formally established;

Afternoon in June 2003: Netcom officially announced the integration of Jitong;

November 6, 2003: China Netcom International Corporation was formally established;

January 9, 2004: the company was set up in northern China Netcom;

January 15, 2004: China Netcom in Shanghai, announced the establishment of the South;

July 2004: Netcom off the North, South and Netcom three international companies, the establishment of China Netcom (Group) Corporation, listed companies for the realization of the centralized management of branch offices around the foundation;

October 2004: Netcom hearing by the Hong Kong Stock Exchange to the United States Securities and Exchange Commission (SEC) submitted a listing of reports;

October 27, 2004: China Netcom began to global road show;

9 November 2004, afternoon: the end of global roadshow Netcom, China Netcom shares gain 28 times over-subscribed;

Afternoon, November 16 2004 -11 17: Netcom in New York and Hong Kong achieved the first day of listing.

November 19, at Chang’an Avenue Beijing International Financial Building, the impressively hung a banner “Celebrating China Netcom Group (Hong Kong) Limited successfully listed overseas,” a smile replaced the CNC staff face these days of tension. The same day, the Executive Chairman of China Netcom CEO Edward Tian is also satisfied with Mr. Zhang to return to Beijing.

So far, China Network Communications Group Corporation (Hong Kong) Limited (HK: 0906, hereinafter referred to as CNC) After two years of suspicion, finally successfully landed thousands of miles away in Hong Kong and New York stock exchange.

However, the listing of China Netcom seems to be to investors – a more satisfactory explanation.

Three factors brought about the successful listing

And three other Chinese telecom operators as overseas market, China Netcom is also the face of sluggish capital markets when the sentiment: the downturn in global capital markets are among Hutchison Whampoa’s 3G services market to the attention of dispersed investors, the beginning of the ” China Life event “would affect investor confidence in China-related stocks. Reduce the financing on the scale of China Netcom, to reduce the proportion of newly issued shares of endless speculation.

The low is expected to directly affect investors to finance the amount of Netcom will also be 6.8 times its earnings in the low pressure on. “HSBC is out of the purchase of CNC stock lending rate to 2%, lower than previously at the Hong Kong-listed China Life 5%.”, A telecommunications analyst with Southwest Securities, told reporters.

How to improve investor enthusiasm for China Netcom, from the outset has been the key to the success of Netcom listed.

However, after the completion of the IPO, China Netcom was given – a pleasant surprise in the results. November 9, Netcom IPO in Hong Kong, won 28 times subscribed, the international placement for institutional investors also received some 20 times subscribed.

“The subscription rate although it can not be too high, or a normal level.” Insider believes that Netcom was not reduced the scale of financing, “for foreign investment in telecom stake in a cap of 25%, as News Corp., Goldman Sachs the existence of the old shareholder, China Netcom can only release the listing of 16.2% of the vote were to international investors. ”

“And listed in Hong Kong compared to China Telecom, China Netcom is undoubtedly a success.” The source believes that Netcom successfully listed three reasons: It is only the first 5 years of red chips, choose the good assets of the local market, luxury invited to cheer group.

By Netcom prospectus can be informed, Netcom this listed in Hong Kong to take the past 5 years have not seen the “red-chip companies mode”, ie, using the original small Netcom’s red-chip architecture through asset injection manner listed companies set up . Red chips model will undoubtedly be more to narrow the distance between Netcom and investors, more accessible to investors. Of course, the most fundamental reason is to choose an effective solution to the original Red Chip Small Netcom foreign investment.

February 2001, Netcom completed the first round of private placement, including News Corp., Goldman Sachs and other major mainland China and Hong Kong investors, including financial institutions, a total of 325 million into China Netcom.

Pedestrians in a vote of soil that, if the form of H shares listed on China Netcom have to pay higher price to pay to lay off the original Netcom holding in the foreign shareholder. China Unicom has also been experiencing similar problems, end the trouble, had to introduce complete withdrawal of all foreign capital.

The source believes that Netcom choose now the way is in line with national policies on foreign ownership in state-owned telecommunications company restrictions, making Netcom Holdings (small CNC) in the news, Goldman Sachs and other international investors to be preserved, and also avoid the repaying its foreign shareholders equity required to purchase a large capital expenditure, and the time cost may be time-consuming.

Prospectus that Netcom, China Netcom listing of assets, including the north of Beijing, Tianjin, Shandong, Hebei, Henan, Liaoning provinces and the south of the Shanghai Six, the two provinces of Guangdong, telecommunications assets, as well as international and Asia Netcom Netcom.

“These are the most sophisticated telecommunications assets CNC parts, CNC 7.2 billion in 2003 revenue, about 6.1 billion fixed-line business from the North.” Evaluation of the soil, said people rely on this combination, Netcom not only to create an image of international operators, and investors can expect to see a return on investment.

In addition, China has listed the three telecom companies than independent directors hired Netcom listing called a “lineup.” Murdoch, Victor Cha Mou Zing, Yingyi Qian, Hou Ziqiang, Chung Shui-ming five independent directors, as foreign investors moved Netcom to increase the credibility of an important weight.

The integration of 10 months

In China’s current four major telecom operators among the latest CNC landed capital markets. However, the suspicion has been run through the whole story listed China Netcom. From the development of “three steps” of the integration program, to November 17 listed for trading, China Netcom took 10 months.

May 16, 2002, China Telecom split scheme for the north and south, the State Council, only the original fixed-line operator China Telecom, the Yangtze River as the boundary split into two, ten northern provinces and China Netcom Holdings (ie, small CNC), Jitong’s combined assets of China Netcom Group.

The next year, Netcom does not move in the reorganization on the “major surgery.” Change is relatively large, former vice minister of Ministry of Information Industry Zhang Chunjiang suddenly in the end of April 2003 as director of Netcom Group.

After the arrival of Mr. Zhang, suddenly accelerated the pace of restructuring and began sweeping reorganization of China Netcom. May 2003, China Netcom began to establish a “three-step plan” integration restructuring plan.

September 2003, Mr. Zhang in China Netcom Group to carry out the internal competition for people to experience the staff has always been a radical reform of his efforts, including Netcom Group headquarters and marketing department, financial department, including basic network of 12 business unit general manager All positions open recruitment for the community.

At that time, “Wall Street Journal”, commented: “Mr. Zhang has announced a large-scale state-owned enterprises in China is almost unprecedented measures.”

Mr. Zhang’s efforts in the promotion, Netcom will soon complete the first integration.

June 11, 2003, integration of the plan began. First, from the beginning recombinant fusion Jitong, China Netcom ratio of 1:1 in accordance with the acquisition of paid-in capital 481,900,000 yuan of state-owned shares Jitong, bear the credit and debt, and Jitong full integration of its assets, networks, operations and personnel and Netcom possessions Communications merged.

The second step integration, that is the end of 2003 the North, South and international three stock companies, the objective is to holding the assets of Netcom China Netcom Group integrated into this framework. Among them, the original business in northern China Netcom China Telecom as the main business of ten provinces in northern, Southern Company to the original small Netcom China Netcom, the main business of the South Jitong, China Netcom International Meeting arrest of the Netcom Group is the small Netcom, Jitong three companies of international resources.

Restructuring the core of the original headquarters and the local parent-subsidiary relationship between the companies to the total branch structure, the former subsidiary for parts of two separate legal status to obtain full property rights reverted Corporation.

“Income contingent decentralization easy, but the original back to the right place can imagine the difficulties, and Netcom local companies is even more complicated, may be old telecommunications, small Netcom, Jitong three co-exist. This is also the outside world after CNC integration generally skeptical of the reasons for the results. “- bits of soil that the industry people.

Integration, Netcom in the capital, procurement, and great customer service to achieve a centralized management, thereby reducing the financial risk, improve operational efficiency.

Netcom is the third recently announced the integration of Netcom North, South and Netcom Netcom off three international subsidiaries. After the cancellation of three major subsidiaries, the establishment of a unified China Netcom China Netcom (Group) Company, completed the listing of China Netcom.

CNC internal sources, first established the three branches is interim nature, purpose is to better completion of the internal integration. While the merger is considered for listing. Newly established “China Netcom shares” will absorb the good assets of Netcom Group listed on the provinces.

For non-listed business, cross-listed China Netcom hosting.

A source said: “The acquisition of the assets the parent company after the listing of telecommunications companies will do. For this part of the business and assets not declared when the prospectus will be implemented in the acquisition, but this is certainly the steps necessary Netcom.”

Netcom To answer the question

With three other listed telecom operators have been compared to the pace of Netcom’s market is the fastest, is reorganization of other operators and then market, more than a fusion Jitong Netcom, China Telecom, the North Little Netcom and three of the steps.

Previously – straight in the internal conflicts plaguing Netcom question whether the whole work can be completed in the battle? The answer is no. Left to solve the integration problem, investors still need to explain Netcom problem.

Netcom has not fully explained in the prospectus the operation of Asia Netcom. Prior to the submarine cable market downturn, the public has this part of the assets of the operation of the skeptical.

Insider soil that Asia Netcom has not yet profitable, the company has been working to cut expenses and reduce costs. Asia Netcom is using the current line and the landing station and surrendered with creditors to negotiate debt reduction, etc. trying to profit.

Netcom announced in the prospectus at the same time, the outside world to issue its dividend policy question.

Prospectus disclosure, Netcom plan payout ratio of about 35% to 40%, about 4 per cent interest rate, which is listed in the Chinese telecommunications industry has been among the few companies able to get out of high-quality returns to shareholders. Therefore, this trend is considered to be unfavorable in Netcom, the lack of significant business in itself highlights the case of measures to attract investors.

“From an objective, so that the dividend policy does play a role in improving the company attractive.” Investment bankers believe that China’s telecom companies have always preferred the lower dividend policy, which makes Netcom dividend even have a “generous” taste.

Hutchison Telecom offering earlier poor response, Netcom’s performance still unsatisfactory. Analyst soil that Netcom’s stability and sustainable growth is the main reason investors are bullish Netcom -.

The first half of this year, China Netcom’s fixed network revenues of 26.714 billion yuan; income of 2.428 billion yuan of broadband, business data revenues 1.567 billion yuan, 1,275 million of international business income. Expected revenue this year is 620 billion yuan, profit of 65 billion.

In fact, in Netcom’s roadshow tour, only this year the biggest investors in telecommunications stocks, the first 5 years, the topic of red chips are more concerned about is that the funds raised will be used for what purpose?

In the prospectus, the CNC provides the answer: not more than 50% of the net proceeds (ie 3,761 million), for the expansion and upgrading of telecommunications network infrastructure; more than 30% (or 2.256 billion yuan) for the repayment of syndicated loans; more than 10% (or 752 million yuan) for the development of new applications, including the new IP data communications services and voice value-added services applications.

For a long way in terms of Netcom, listing the need for financial management and business strategic planning is particularly important.

Netcom’s management has been optimized to emphasize their own business. At present, China Netcom has a domestic and international fixed telecom network, which networks and services around the country and the world more than 260 countries and regions, especially in broadband technology and the advantages of network coverage, broadband metropolitan area network base around the country mainly 10 northern cities and provinces. But it also allows Netcom putting a heavy debt burden.

Analysts pointed out that China Netcom, the liabilities also must focus its consideration. The debt issue, indeed higher than that of liabilities Netcom China Telecom. Netcom submitted information disclosure of listed companies, the current Netcom 47.933 billion yuan of short-term liabilities, long-term liabilities of 22.309 billion yuan.

Telecom industry experts believe this number is still within the scope of the company to bear, “is not unacceptably high.” And the message has been confirmed, China Netcom is working with a number of creditor banks to carry out the negotiations, based on the telecommunications industry is a long period of investment projects, and strive to banks to short-term debt into long-term debt Netcom.

In addition, rumors of the soon to be comp coach outlet stores    e of the Hong Kong telephone company PCCW’s acquisition of China Netcom Group will also help further enhance the competitive edge overseas.

Believe that the investment bank; if the future is really the acquisition of PCCW, the acquirer would come forward Netcom China Netcom Group, the parent of listed companies, listed companies because it enables China Netcom and financi  coach outlet online      den as possible to separate.

“Netcom may take time for thcoach outlet store online in the broadband business.” The person that.