CHINA Netcom Group Corp and its Hong Kong-listed unit said on Aug 23 that they completed the sale of Asia Netcom to an investor group for US$402 million, as the country's No. 2 fixed-line phone operator moves to focus on the domestic business.

The investor group, led by Ashmore Investment Management Ltd, Spinnaker Capital Ltd and Clearwater Capital Partners, will pay US$169 million for the international service unit of Asia Netcom and US$233 million for the firm's submarine cable network in Asia, China Netcom said in a statement.

Hong Kong-headquartered Asia Netcom provides data communications and operates a telecommunications network infrastructure that includes a privately-owned subsea cable system.

Asia Netcom's operational structure and the current management team will remain, according to China Netcom. "It is a clear step for China Netcom to adapt its strategy. The overseas expansion is not affordable for the capital-hungry firm now," said Cui Xiaolong, an analyst at Analysis International based in Beijing.

Fixed-line carriers, including China Telecom and China Netcom, have to adapt to a business model that helps them to cash in through non-voice services, especially in next generation phones.

Source:佚名