Alcatel will provide the ISP, branded as Xin Net, with a remote access concentrator that will support the implementation of 18,000 ports over the next 3 years.

Xin Net has 25,000 subscribers in Beijing, Shanghai and Shenyang, and has gained ISP licenses for 10 Chinese cities. The company is listed in the US on the NASD as Xin Hai Corp (OTC BB:XNET).

Alcatel has expanded its business in China over the last year. The French telecom closed a deal with Guangdong PTA in September 1998 to provide Guangdong Province with 50,000 ADSL lines.

Last week, Alcatel announced that it was awarded a contract by Shanghai PTA to supply ADSL products for the Shanghai Hotline, a major part of the on-going Shanghai Infoport project.