China Netcom, Telefónica Cosy Up
HONG KONG -- China Netcom Group Corporation (Hong Kong) Limited ("China Netcom" or "the Company") (HKSE: 0906; NYSE: CN), a leading telecommunications operator in China and the Asia Pacific region, is pleased to announce that it formally entered into a memorandum of understanding ("Memorandum") with Telefonica, S.A. in Beijing on 21 July 2005.
With this Memorandum, the Company and Telefonica hope to establish a broad strategic alliance. The parties will explore possible areas of strategic co-operation which would be beneficial to both parties. They will also examine in good faith the form and terms of such co-operation as soon as possible.
The strategic co-operation could cover:
- 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) to discuss the possible areas of co-operation which would confer mutual benefits to both parties.