Thursday, July 21, 2005

China Netcom and Telefonica Sign MOU

China Netcom and Telefonica signed a memorandum of understanding (MOU) to establish a broad strategic alliance. The parties will explore possible areas of strategic co-operation in the areas of:

  • Fixed-line, broadband, domestic and international long distance communications

  • Domestic and international data services and value added services

  • Nationwide mobile voice and data services to individual and corporate customers, as will be allowed within the Chinese regulatory environment.

  • The exchange of certain managerial, technical and operational skills and resources.

A Chairmen's forum, consisting of the Chairmen of both companies, will be established and will meet on a regular basis (at least once a year. Telefonica shall be entitled to nominate a representative to the board of directors ("the Board") of China Netcom , and the number of representatives that Telefonica is entitled to appoint to the Board shall increase if its ownership stake increases further.

See also