China Netcom, Telefonica SA Establish Strategic Alliance

From Light Reading: China Netcom, Telefónica Cosy Up

"China Netcom Group Corporation (Hong Kong) Limited, 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."