CBCom Inc., a start-up aiming to become one of the largest non- state-owned ISPs in China, has completed the first phase of merger and consolidation of Internet Service Providers (ISPs) that have been acquired.

After CBCom established Chinet as its ISP strategic partner in China, and then acquiring two additional ISPs and a networking solutions provider, it began the process of merging and consolidating the newly acquired companies.

The first phase of this consolidation is now complete.As a result of this consolidation, Chinet administers its entire China operations from its main office in Beijing, having relocated to that office all physical assets (except for collocated networking equipment), human resources/personnel, sales and marketing, customer service, and office and administration staff. Toll-free 800 number service has been installed as well, and Chinet now provides centralized customer service for all operations.Chinet has begun a full-scale marketing campaign to promote brand recognition of its 95777 access number (a special nationwide number that users may use to access the Internet at a reduced rate). The consolidated marketing campaign removed confusing and conflicting sales promotions previously offered by competing ISPs, thus providing customers a simplified and clear set of choices. The 95777.com website has been established where all consolidated ISP websites are now directed. This phase of consolidation has greatly reduced staffing requirements through elimination of redundancies. Before consolidation, these individual companies required a combined staff of 140 persons in order to operate efficiently. The consolidated company requires only 80 employees -- a reduction of 43% of the original workforce -- and despite the reduction provides service to all of its 500,000 merged customers with service that is even better and more efficient.