"A blueprint is under heated debate and will come out before the end of this week," said Shen Xiaomin, marketing director of China Network Communications Corp.

"The merger in northern regions will be the first step," she said in a telephone interview with China Daily yesterday, but refused to disclose further details about the merger plan.

Sources from China Netcom said high-ranking officials and general managers from its northern China regions had a meeting on Monday, discussing a feasible merger plan in the area.

A knowledgeable source close to China Netcom said that in the coming months, China Network Communications Corp's businesses in northern regions will be incorporated into China Netcom's three branches under Beijing Communications Corp, Liaoning Communications and Hebei Communications.

The plan, to be mapped out in the near future, is another bold move by China Netcom to enhance its competitiveness in the fierce telecom market.

The plan follows moves last month to merge with Jitong Communications by purchasing that company's State-owned shares valued at 481.9 million yuan (US$58 million).

"I believe China Netcom is heading in the right direction with their corporate practices by avoiding duplication of its businesses," said Yang Peifang, an expert from the Academy of Telecommunications under the Ministry of Information Industry.

However, China Netcom should bear in mind how to keep China Networks Communications Corp's advantages while conducting the incorporation.

China Networks Communications Corp became a star telecom operator owing to its development of broadband networks over the past few years.

(China Daily July 17, 2003)