Yao Ming's games just a click away
By China Business Weekly (Chen Zhiming)
Updated: 2005-04-17 09:22

Want to watch live broadcasts in your own home of Chinese basketball star Yao Ming's performances throughout the National Basketball Association season?

It is just a mouse click away!

All you need is a computer and a broadband Internet connection.

Broadband is making life easier and more convenient than ever before, and in turn, is changing our lifestyle.

"This is exactly the experience we are bringing to our customers," said Zuo Feng, general manager of China Netcom's Marketing Department.

"We saw increasing demand for more integrated broadband services."

Zuo made the remarks last month during China Netcom's official launch of "CNC MAX," its first broadband name.

The move, announced in Beijing, was the first step in China Netcom's efforts to reshape its broadband business.

Zuo said China Netcom's former broadband businesses that target families and individuals will be converged under the brand.

Services under "CNC MAX" will include broadband access, broadband content and broadband applications, such as entertainment, gaming, information service, sports and education.

"We would like to build it into the strongest broadband brand to carry out our broadband development strategies," Zuo said.

"However, the expansion on broadband can no longer rely on low price. Applications will be the major drivers behind the development."

He said China Netcom plans to take advantage of CNC MAX to integrate all participants in the broadband industrial chain such as telecoms operators, content providers and service providers.

"It will be a win-win deal for us and our partners, and value-added telecoms services based on broadband are sure to become a very effective revenue generator for all of us," Zuo said.

Analysts believe with China Netcom heavily working on the broadband services, China's broadband industry is likely to undergo a new round of convergence very soon.

Figures from CNNIC, a domestic research house that focuses on the Internet, indicate China, by the end of last year, had more than 42.8 million broadband Internet subscribers, up 38.1 per cent compared with the middle of last year.

That growth is maintaining its strong momentum this year, as telecoms operators are cultivating new business growth areas based on broadband, CNNIC said in a recent report.

China Netcom, for example, has recruited more than 8 million broadband subscribers so far.

Nevertheless, analysts believe China Netcom must face tough competition from domestic competitors, such as China Telecom, Beijing Gehua Cable TV and China Railcom.

For example, ChinaVnet, a broadband-based Internet portal of China Telecom, has recruited 9.78 million subscribers. The company is expected to sign up more than 12 million by the end of this year.

To better compete with its rivals, China Netcom has chosen to co-operate with PCCW Ltd, Hong Kong's largest fixed-line operators.

In January, China Netcom bought a 20-per-cent stake in PCCW for US$1 billion, to focus largely on China-oriented investment opportunities, including wireless, Internet TV and property projects.

In another development, PCCW announced late last month it plans to purchase a stake in a broadband subsidiary of China Netcom.

PCCW said, when it announced its annual profits, that it hopes to team with China Netcom to conduct business in the Chinese mainland, Hong Kong and the rest of the world.

Jack So, vice-chairman and general manager, said the two companies will improve broadband services by rolling out more value-added services such as broadband television and IPTV (Internet Protocol TV) in many cities.

"We will leverage our strengths in technology and marketing of new services, and combine them with China Netcom's local knowledge and infrastructure," So said.

Sources said China Netcom, within the next six months, will launch broadband services in six of South China's cities.

The cities are Chengdu, Chongqing, Hangzhou, Wenzhou, Ningbo and Yangzhou.

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