China Netcom, the mainland's No.2 fixed-line operator, said last week it had begun building a 350-km-long submarine cable in eastern Shandong Province to connect the country's northern region with the East Asia Cable (EAC), which links Japan, South Korea, and China's Taiwan and Hong Kong.

The project is slated for completion by May 2006 in the coastal city of Qingdao, and is expected to play a vital role in communication in the 2008 Olympics to be held in Beijing, according to the company.

China Netcom and Japan's NEC signed a contract in Beijing on June 28. NEC will lay a 350-km fiber optic submarine cable for China Netcom to boost the operator's capacity in time for the Olympics.

The cable in Qingdao will cut communication costs between Beijing and overseas, said Zhao Jidong, deputy general manager of China Netcom. Previously the only two outlets in China were set up in Shanghai and Shantou, a coastal city in south China's Guangdong Province.

The new outlet will also improve the quality and efficiency of communication from Beijing, Zhao added.

By May 2006, the information highways connecting China's three largest cities with the global undersea network will be Beijing-Qingdao, Shanghai-Chongming, and Guangzhou-Shantou, he said.

Moreover, China Netcom will offer broadband connectivity and other fixed line services for the 2008 Beijing Olympics.

(Xinhua News Agency October 10, 2005)