Apr. 22, 2008 (China Knowledge) - China Netcom Group Corp<906><CN>, China's second largest fixed-line telephone operator, said on Monday it realized RMB 20.2 billion (US$2.9 billion) in first quarter revenue thanks to a strong growth in internet subscribers.

From January to March, the company lost 1.72 million fixed-line phone users, cutting its total fixed-line users to 109 million. But its broadband services attracted 1.89 million new users for a total of 21.7 million subscribers.

The decreasing momentum of fixed-line phone users have been lasting for nine months by March end, and is expected to continue this year, the company said.

More Chinese customers are now shifting to use mobile phones after the nation's two handset operators China Mobile<941><CHL> and China Unicom<762><CHU> cut rates and offered cheaper packages this year.