Beijing, June 8, 2007 -- China Netcom and its former subsidiary, Asia Netcom, today officially announced the launch of the EAC Qingdao Extension and a new connectivity solution linking China and the rest of the world via the EAC network.


The new solution consists of an extension of Asia Netcom's regional cable system, EAC, into China with a landing station in Qingdao, the city in northern China.

The EAC extension will land in the Qingdao Cable Landing Station operated by China Netcom and connect seamlessly to China Netcom's national fiber infrastructure.

The new Qingdao extension will dramatically improve the two companies' ability to offer connectivity and networking solutions between China and the rest of the world. At the same time, the Qingdao link complements EAC's existing entry point into China via its Hong Kong landing point and offers a second, independent landing point into the Chinese market, allowing the companies to offer full protection with route diversity for all services into the country.

"Through the EAC Qingdao landing, China Netcom, together with Asia Netcom, will be able to offer dramatically improved performance levels of connections into China," said Zhao Zidong, Senior Vice President, China Netcom Group.

Through the new EAC Qingdao route, China Netcom's national network will seamlessly connect to other parts of the world through EAC and other subsea cable systems. Qingdao's proximity to key northern Chinese cities will reduce the distance by more than half between major commercial centers, such as Shanghai and Beijing, and the key North Asian markets of Japan and Korea as well as the U.S. Network latency will be reduced by up to 40% compared to existing routes to those locations through EAC's Hong Kong landing point.

"The Internet has become increasingly a multimedia platform, and we expect the Beijing 2008 Games to serve as a major catalyst for content creation as hundreds of visitors to the event begin to share their memories and thoughts online," said Bill Barney, CEO, Asia Netcom.

"The EAC Qingdao extension will serve as a key facilitator for the distribution of that content to the rest of the world and help make China Netcom's vision of a 'Broadband Olympics' a reality."

The new EAC-Qingdao landing station further enhances China Netcom's global routes, while improving network security and reducing latency.

The EAC-Qingdao link will initially feature 80Gbps of capacity, and is upgradeable incrementally to 2.56Tbps.

China Netcom invested $24 million for the EAC Qingdao Extension and awarded contract to NEC on a turn key basis.