Mainland groups revive long-delayed broadband pact
The long-delayed broadband joint venture between China Network Communications Group Corp and internet venture capital investors International Data Group and Softbank Corp has been revived and may be up and running by the end of the year.
China Netcom Group broadband business deputy general manager Huang Qingxia said the joint venture would soon deliver value-added services to broadband users in China.
'We're now finalising business strategy and actively preparing for the actual launching of the services. We certainly want to launch the services as soon as possible.'
China Netcom Group vice-president Leng Rongquan was quoted by China Business Weekly as saying the venture hoped to launch its services before the end of next month.
The venture - Jiuzhou Online - was originally scheduled to launch on May 17, China's World Telecom Day. But the plan was put on hold because of the Sars outbreak, while the partners wanted to spend more time on the joint venture's business plan, Ms Huang said.
The delay prevented the venture from becoming the country's first Sino-foreign telecommunications joint venture after the country's accession to the World Trade Organisation. The joint venture has 200 million yuan (HK$185.8 million) in registered capital.
China Netcom Group owns a 40 per cent stake, while the remainder is equally split between IDG and Softbank.
The venture will provide Net content and applications, while China Netcom Group will provide access services to subscribers. China Netcom Group has about 20 million internet subscribers.
