Netcom sees increase in fixed-line users

China Netcom Group Corp, a mainland telephone service operator, added 106,000 fixed-line users last month, its first increase in 10 months, benefiting from the growing demand for the Beijing Olympics.

Netcom, an official sponsor of the games, said total fixed-line users rose to 108 million last month. Analysts said more telephone lines were installed at flats, offices and auxiliary facilities such as media centres for the Olympics.

'The market did not experience change last month so the main reason for the net additions should be related to the Olympics,' an industry analyst said.

The proposed merger with mobile carrier China Unicom may have also helped Netcom.

'Some of Unicom's staff have been asked to use the fixed-line service of Netcom after the merger was announced in May,' said Marvin Lo, a telecommunications analyst at Daiwa Institute of Research.

Netcom had been losing fixed-line users since August last year when the total stood at 114 million.