China Unicom Corp. announced Wednesday the launch of a terrestrial optical cable network connecting China, Mongolia and Russia. The cable is joint effort with Mongolia's Railcom and Russia's TransTeleCom Company, with China Unicom building the section of the network connecting China and Mongolia.

At 7,500 kilometers in length, the cable is the shortest terrestrial cable link between mainland Europe and Asia.

By adopting Synchronous Digital Hierarchy (SDH) technology, the capacity for the first phase of the cable is expected to reach 622 megabits per second (Mb/s), according to Tian Wenke, general manager of the Data and Fixed Communications Department of China Unicom.

About 155 Mb/s have already been put into use, he said.

With a shorter length than other terrestrial cables, information will be subject to fewer delays as it travels, Tian said. This is an important feature for new businesses that are time-sensitive.

Before the launch, international business had been conducted mainly through satellite networks and submarine cable networks, but the new terrestrial system will facilitate business with more European and Asian countries.

"The terrestrial cable network and submarine cable networks are complementary and help enhance the reliability of the networks," said Tian. "I believe with the launch of the terrestrial cable network, much business that used to rely heavily on submarine cables or satellites will be transferred to the new cable network."

Telecom businesses based on optical cable networks usually consist of IP phones, data transmission and Internet-based services.

Tian believes that the launch of the cable will be conducive to China Unicom's international business as it provides a new alternative.

"It's a win-win deal for China, Mongolia and Russia as the cable is going to meet the increasing demand for data transmission and telecommunication demand, along with enhanced economic cooperation between the three countries and Europe and Asia."

China Unicom plans to extend a similar terrestrial cable soon to the Democratic People's Republic of Korea.

"We have obtained the license from regulators, but we don't have an exact timeline," said Tian.

In another development, China United Telecommunications Corp. Ltd., a listing arm of China Unicom in the domestic A-share market, announced last Saturday that it plans to raise 6 billion yuan (US$722 million) through share placements.

The company has reported revenues from its main businesses last year reached 59.8 billion yuan (US$7.2 billion), up 31.2 percent from a year earlier.

Pretax profits for 2003 stood at 24.8 billion yuan (US$3.0 billion), a rise of 7.5 percent year-on-year.

Net profit was 2.3 billion yuan (US$280.0 million), up 6.3 percent from the previous year.

(China Daily April 15, 2004)