China Netcom Group Corp is a step closer to going public on Hong Kong and New York stock markets, a high ranking official with the company said yesterday.

"As far as progress is concerned, we are shifting into high gears now," said Zhang Chunjiang, general manager of the group.

"The listing plan is under discussion. We haven't reached to any specific plans," he told China Daily yesterday in Beijing on the sidelines of the establishment of China Netcom Northern Communications Co Ltd (Netcom North), a subsidiary of China Netcom Group.

It is reported that China Netcom was in preliminary talks with many major investment banks for listings in Hong Kong and New York, before considering a domestic listing.

"The setup of Netcom North marked our strategy is entering a new stage," Zhang said yesterday.

In November, China Netcom International Communications Co Ltd (Netcom International) was established to be the exclusive branch for China Netcom Group to deal in international-related businesses.

Zhang revealed that China Netcom Southern Communications Co Ltd (Netcom South) will also be officially unveiled on January 15.

"We are closely following our strategies step by step to become competitive," he said.

China Netcom is now the only one among the four major telecom operators who has not been listed.

According to Zhang's blueprint, after the forming of the three subsidiaries, the next step is to establish China Netcom Shareholding Co Ltd, enabling the company to go public in the middle of this year.

The listed company is supposed to purchase assets from its parent company step by step.

"All the purchases will be finished before the end of 2006," Zhang said.

Yesterday, Leng Rongquan, vice- president of China Netcom Group Corp was officially announced as the head of Netcom North.

The company incorporated China Network Communications Corp's businesses in the northern 10 provinces into China Netcom's local companies.

According to Leng, revenue of those 10 provinces accomplished 70 billion yuan (US$8.4 billion), up 9.7 per cent from the previous year.

"As a transitional company, we will dedicate to generate more revenue and profits," he said.

He outlined that this year, it is to fulfilled a revenue of 76 billion yuan (US$9.1 billion) and a profit of 4.5 billion yuan (US$542 million), respectively.

"We will take advantage of the favourable stimulus like Beijing Olympics and rejuvenation of Northeast China to further expand our fixed-line and broadband business," Leng said.

"By doing so, we will strive to make all the 10 provinces become profitable," he said.

The company has so far recruited 95 million telephone subscribers, including 10 million Xiaolingtong wireless phone users and 3 million broadband users.

He also unveiled that Netcom North is to officially unveil its website named "Jiuzhou Online" on February 10, to provide information services and broadband access services to its customers

"I believe that China Netcom's new actions will help improve its efficiency and financial performance," said Yang Peifang, an industry expert from the Academy of Telecommunications under the Ministry of Information Industry.

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