Telecom players like BT, AT&T and Verizon Communications will face more challenges from China in Europe, as a second Chinese telephone company will open an office in London.

China Netcom, the country's second largest fixed-line telephone company, will on Thursday open a London office that will be its European headquarters, reported the Financial Times on Wednesday.

Chinese companies in Europe and European companies in China are the branch's two target customer groups, according to the London-based newspaper.

"China Netcom is looking to use its global telecoms network to serve the voice and data needs of Chinese companies with operations in Europe," an insider was quoted by FT as saying. "It also wants to serve the telecoms needs of European companies with operations in China."

The move is another strategic one for Chinese telecoms to make further inroads into European markets.

In 2002 and 2004, two Chinese telecoms equipment makers, Huawei and ZTE respectively, inaugurated their London sales offices, though both are now mainly dealing with financing.

In 2005, China's No.1 fixed-line company China Telecom opened a London office which serves the telecom needs of Chinese companies with operations in Europe.

China Netcom's venture is regarded as a challenge to its US and European rivals.

"Its efforts to serve the voice and data needs of multinationals will pit it against European and US telecoms companies such as BT, AT&T and Verizon Communications," says FT.

The move is part of efforts by Chinese companies to expand overseas under the central government's "go global" policy.

Earlier this month, in a report at the 17th National Congress of the Communist Party of China, General Secretary Hu Jintao, also China's president, said China should take solid steps in implementing the "go global" strategy.