To Exploit Own Particular Advantages for Mutual Benefit and Development - China Telecom and China Mobile Implement Strategic Cooperation

05 Apr 2005

Reported by Xiaozhuo People's Post & Telecommunications News 2005-03-24

Yesterday China Telecom and China Mobile reached formally a strategic cooperative framework agreement.

Mr. Wang Xiaochu, the General Manager of China Telecom, and Mr. Wang Jiangzhou, the General Manager of China Mobile, attended the signature ceremony. Mr. Yang Jie, deputy general manager of China Telecom and Mr. Lu Xiangdong, deputy general manager of China Mobile set their hands to the agreement.

It indicates that the cooperation relation of beneficial competition will be consolidated further. The action will promote powerfully both business development that will provide more abundant and high-quality telecommunications services.

Both sides made serious promises in the framework agreement:Benchmarking with national laws and governmental regulation,

More to rationalize market activities, to develop rational competition and to esteem users' rights and interests in order to provide better telecommunications services for customers.

To utilize reasonably resources and to avoid redundant projects;

To operate with honor credibility and to share the value in long- term cooperation;

To consult actively good plan of telecom industry development and to arrange to solve problems;

According to the agreement both sides will set up the consulting system that keeps periodic contact of both senior leaders. Both sides will organize a working group in HQ, which will carry on concretely cooperative matters and organize both province-level companies to do so.

In his address Mr. Wang Xiaochu expressed that both sides had peculiarities in each resource that could expert each advantage, learning from other strong points to offset ones weakness, so as to improve service level, strengthening competitive ability and increasing internal values. In new market position both sides would not only keep rational competition to inspire the vigor of the enterprises but also seek cooperation in the competition. Both should exploit constantly cooperative scope and depth and enlarge the market to promote the development of telecommunications industryMr.

Wang Jianzhou addressed that China mobile all through insisted on the idea of co-competition and sparkplug competition in order. Both should strive to create good situation of co-competition and win-win for running the telecom market with stabilization, regulation and order. The signatures just showed an embodiment above.

As the oversize state-owned enterprises, China Telecom and China Mobile undertake historical important task to provide telecommunications service to all society and to informationize to whole country for the development of national economy and society.

In order to meet the market demands and further serve vast clients both sides discussed actively subjects such as network resource, management, interconnection, operation maintenance etc. with exploiting their own particular advantages for mutual benefit and co-development.

Both sides considered consistently that the signature and execution of the cooperative agreement would make a new opportunity to both developments and create max value to shareholders and clients. It would as well as promote overall, harmonic and sustaining development of Telecom career in China and accelerate China into a strong telecommunications country.