In a keynote presentation at the ITU Telecom Asia 2004 Forum today, Asia Netcom's President and COO, Bill Barney said his focus is to realign the business to address the market segments that are seen as having the highest growth potential. Asia Netcom has introduced a regional IP VPN offering with 5 classes of service. Barney said 70% of Asia Netcom's CAPEX this year will be focused on the edge of its network in enhancing the scope of servicing customers, whereas, in the past, the company spent more than 90% of its money on building up the core network. On the business side, Asia Netcom is changing its sales organization to focus on the retail side, with revenue from enterprise sales now equaling more than half of its total sales, whereas more than 90% of the business came from carriers just a few years ago. Together with its ongoing efforts to increase operational efficiencies, the company has driven down its cash burn to close to 0, from US$60 million per month just two years ago. http://www.asianetcom.com
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- In February 2004, China Netcom acquired full control of Asia Netcom, a company founded in March 2003 by a consortium lead by CNC which included Newbridge Capital and Softbank Asia Infrastructure Fund. The partners agreed to exit the consortium at this time to support CNC in facilitating its restructuring process. Since its launch last year, Asia Netcom's business has been managed as a stand-alone entity. China Netcom said it plans to continue operating Asia Netcom as a separate business and has no immediate plans to fully integrate Asia Netcom into its mainland operations.
