China Telecom Dials Up Deeper Partnerships With AT&T, Orange

China Telecom, the smallest of the nation’s three wireless carriers, announced extensions and expansion of agreements with two leading peers in the U.S. and Europe in its drive to better serve a growing movement of Chinese companies going abroad.

One of the agreements will see China Telecom extend an existing joint venture with U.S. giant AT&T Inc. The pair founded the venture, Shanghai Symphony Telecommunications Co. Ltd., 20 years ago, and have agreed to expand its service offerings and geographic scope, according to an announcement from AT&T.

Under their extended agreement, China Telecom and AT&T will explore new services involving the internet of things (IoT), which allows devices to communicate with each other over the worldwide web, and also in cloud-based big data.

The other deal will see China Telecom extend its existing partnership with leading French carrier Orange SA into the IoT arena to serve their existing customers in Asia, Europe and Africa. The pair will provide reciprocal services in their home markets for European companies doing business in China, and a growing number of Chinese companies setting up shops in Europe.

Both deals were announced on the sidelines of a major telecommunications show taking place this week in Shanghai.

“China is one of the fastest-growing markets for IoT applications,” said Deng Xiaofeng, China Telecom’s managing director of global business. “China Telecom is working closely with Orange to push for the building of an innovative and advanced IoT solution to capture global IoT opportunities.”

Renewal and expansion of the existing tie-ups highlight not only the entry of new products and services into the market, but also the growing tide of Chinese companies going abroad and requiring telecoms services. Traditionally companies like AT&T and Orange formed such partnerships to serve clients from their home markets doing business in China. But now China Telecom is also looking to serve a growing number of Chinese businesses going to Europe and North America.

“I believe these two cooperation agreements will allow China Telecom to continue its strong position with major multinational corporate customers in China, and help Chinese companies who have been expanding overseas,” said Jefferies analyst Edison Lee. “However, it is unlikely to have significant impact on China Telecom’s earnings in the near term.”

Contact reporter Yang Ge (geyang@caixin.com)