China Netcom Group (Hong Kong) sees itself as a regional player able to capture surging demand for high-speed data traffic and so setting it apart from close rival China Telecom.
But the company is likely to have its work cut out trying to convince the investment public as it heads towards a US$1 billion to $1.5 billion dual listing in Hong Kong and New York.
Having acquired bankrupt undersea cable carrier Asia Global Crossing - renamed Asia Netcom - two years ago, Netcom became the only Chinese carrier to own a telecommunications business outside the country. Now it hopes to use Asia Netcom to tap the into the Asia-Pacific region's estimated US$3 billion international data revenues.
'In the Asia-Pacific region, we target business and carrier customers with significant demands for China-related or cross-regional telecommunications services,' Netcom said in its filing to the US Securities and Exchange Commission.
'As China becomes increasingly integrated with the rest of the Asia-Pacific region through trade, commerce and other activities, demand for cross-border telecommunications service by Chinese enterprises operating overseas and foreign companies operating in China is expected to increase significantly.'
A source said Netcom was looking into other expansion opportunities abroad either through acquisition or business co-operation with foreign partners.