China Telecom and France Telecom's Orange signed a strategic partnership framework deal on Wednesday that will enable both companies to better complement each other's networks and services, the companies said in a news release issued after the signing of the agreement. China Telecom, the world's largest fixed-line telephone operator, and Orange believe the agreement “will bring benefits to both by leveraging China Telecom's strengths in China and the Asia-Pacific region and Orange's distinct geographic reach in Europe and Africa,” according to the press release. Under the new agreement, Orange has agreed to allow China Telecom to extend Orange's IPVPN (Internet Protocol Virtual Private Network) services in Europe, Africa and the Middle East to the subsidiaries of multinational Chinese companies. China Telecom has also agreed to provide “managed outsourced and field services to Orange's multinational customers in China to allow Orange to improve IPVPN services for its enterprise customers in China and other Asia-Pacific countries.” Both companies have agreed to complement each other's network development planning and deployment in their respective regions, focusing on underwater and terrestrial cable links between Asia, the Asia-Pacific region and Europe, as well as ensuring improved connectivity to Africa. Orange will facilitate the ability of China Telecom's customers to roam on WiFi hotspots in Europe, while China Telecom will improve the ability of Orange's customers to roam on WiFi hotspots in China. The agreement may be extended to other areas at a later date. BM
