We are a leading broadband communications and fixed-line telecommunications operator in China. Our service region in China consists of Beijing Municipality, Tianjin Municipality, Hebei Province, Henan Province, Shandong Province, Liaoning Province, Heilongjiang Province, Jilin Province, Neimenggu Autonomous Region and Shanxi Province. In these regions, we are a dominant provider of fixed-line telephone services, broadband and other Internet-related services, as well as business and data communications services.

We own and operate extensive local networks in our northern service region, including the "last mile" infrastructure, which is costly for our competitors to follow. We also own and operate local networks in selected major cities in our southern service region. We operate a high-speed and reliable intra-and inter-provincial transport network in our northern and southern service regions.

Definations
"the Company", "our Company", "China Netcom", "we" or "us": China Netcom Group Corporation (Hong Kong) Limited (中国网通集团(香港)有限公司), a company incorporated in Hong Kong under the Companies Ordinance with limited liability and, as the context may require, our subsidiaries.

"China Netcom Group": China Network Communications Group Corporation (中国网络通信集团公司), a state-owned enterprise established under the laws of the PRC and the ultimate controlling shareholder of our Company, and its subsidiaries. Unless otherwise expressly stated or the context otherwise requires, references to "China Netcom Group" exclude us and our subsidiaries.

"CNC China": China Netcom (Group) Company Limited (中国网通(集团)有限公司), formerly known as China Netcom Corporation Limited, a company established in the PRC with limited liability as a wholly foreign-owned enterprise and a wholly owned subsidiary of our Company.

"China Netcom BVI": China Netcom Group Corporation (BVI) Limited, a company incorporated in the British Virgin Islands with limited liability and the direct controlling shareholder of China Netcom.