China Netcom
| Company type | State-owned enterprise |
|---|---|
| Industry | Telecommunications |
| Founded | August 1999 |
| Fate | Merged with China Unicom on October 6, 2008 |
| Successor | China Unicom |
| Headquarters | Shanghai , People's Republic of China |
Area served | Northern China, major urban centers in China |
Key people | Jiang Mianheng, Liu Chuanzhi |
| Products | Wireline telecommunications services, broadband Internet backbone, ADSL internet access, internet colocation, connectivity solutions for IP telephone outlets |
| Owner | Chinese government |
China Netcom, formally known as China Netcom Group Corporation (Hong Kong) Limited (previous stock symbols: HKEX:0906, NYSE:CN), was a state-owned telecom enterprise in the People's Republic of China. Established in August 1999, its purpose was to attract investment for the advancement of high-speed Internet infrastructure nationwide.
Sectors
CNC mainly provided wireline telecommunications services throughout northern China while developing a nationwide broadband Internet backbone. It held the position of the second-largest fixed-line operator after China Telecommunications Corporation and operated a semi-mobile PAS or xiaolingtong network.
Initially concentrated on northern regions and major urban centers such as Shanghai, Guangdong, Beijing, and Tianjin, CNC later extended its coverage to most provinces. Its offerings encompassed ADSL internet access (predominantly in northern areas), internet colocation, and connectivity solutions for China's 'IP telephone' outlets that offer discounted walk-in calling services.
Serving as the authorized telecom provider for the Beijing 2008 Olympic Games, CNC ensured reliable fixed-line communications for the Beijing Organizing Committee throughout the event and its preparatory test phases.
History
Established in 1999 as a wholesaler specializing in high-speed data networks and headquartered in Shanghai, CNC received backing from Jiang Mianheng, son of former Chinese leader Jiang Zemin, along with Liu Chuanzhi, chairman of Legend Computers (now Lenovo). The company initially faced severe challenges due to China Telecom's dominant market control, nearly resulting in bankruptcy.
Supported by government intervention and Jiang Mianheng’s influence, the Chinese authorities dismantled China Telecom’s monopoly. CNC was allocated roughly one-third of China Telecom’s assets—mainly within northern provinces—facilitating its subsequent growth and expansion.
Merger with China Unicom
On June 2, 2008, China Netcom, a subsidiary under China Network Communications Group Corporation, declared plans to merge with China Unicom after Unicom divested its CDMA network to China Telecommunications Corporation. This merger combined China Netcom's infrastructure with Unicom's extensive nationwide GSM network, which served 125 million subscribers, alongside its smaller dial-up and ADSL ISP operations.
The merger concluded on October 6, 2008, resulting in China Netcom becoming a wholly owned subsidiary of China Unicom. Following this, China Netcom’s stock was removed from the Hong Kong Stock Exchange and its American Depositary Receipts were withdrawn from the New York Stock Exchange.
Complaints about spam
Western markets identified China Netcom and its domain cnc-noc.net as major sources of email spam and spamvertised websites promoting products such as pharmaceuticals, adult material, and online gambling.
In 2008, researchers from Norway described cnc-noc.net as "by far the world's worst ISP," highlighting its failure to respond to incident reports. Furthermore, Spamhaus ranked this Unicom ISP as the third most problematic worldwide regarding spam-related activities.