AT&T and China Telecom Sign Agreement to Expand Relationship, Deliver Global Solutions to Multinational Companies

Beijing, China, November 30, 2011

China Telecom and AT&T* have signed a strategic framework agreement to expand their existing relationship in order to deliver advanced global solutions to multinational companies (MNCs).

Today’s announcement builds upon the long-standing relationship between AT&T and China Telecom, and the success of Shanghai Symphony Telecommunications Co., Ltd. - a joint venture formed between AT&T, China Telecom and Shanghai Information Investment Co. in 2000 - the first Sino-foreign telecommunications services joint venture in China.

With today’s announcement, the two companies are working to:

  • Expand AT&T’s existing IP-VPN service in China to allow broader national reach, greater technology choice, enhanced performance and reduced total cost of ownership, as MNCs continue to expand their business in China.  The companies also intend to explore jointly deploying an expanded suite of VPN-based services, as well as advanced services like telepresence, managed hosting, cloud-based services, network integration services, and enterprise mobility solutions.
  • Connect the China Telecom and AT&T MPLS-based IP networks in the United States, to provide the same world class global experiences for Chinese multinationals as they grow outside China;
  • Explore the possibility of providing mutual support in other regions of the world;
  • Provide bilateral WiFi roaming as an additional access capability
    • Simplify intercompany business processes and put in place tools to help both companies operate more efficiently.

“Our customers have told us that enhanced communication services between China and the rest of the world is a key factor for improving their competiveness and global expansion,” said Roman Pacewicz, AT&T Business Solutions senior vice president of marketing and global strategy.  “Developing this strategic framework agreement will allow customers with operations in China to take advantage of the same type of business transformational services they have in other parts of the globe.”

“Through the strategic collaboration between China Telecom and AT&T, China Telecom will be able to enhance its end-to-end service capabilities via AT&T networks in the US.  We will better serve our China-based and Asian customers in the US,” said Kou Fengda, managing director of China Telecom’s global business.  “China Telecom and AT&T will also be able to directly provide bilateral WiFi roaming capabilities for each other’s customers so that they can enjoy enhanced wireless broadband services.”

Through the definitive agreements to be developed under the framework agreement, the parties hope to enable the delivery to MNCs of a host of benefits, including:

  • Simpler contracting and billing arrangements;
  • Even higher service levels for MPLS-based services;
  • Lower costs;
  • An expanded portfolio of services between the US and China;
  • Shortened development time for new products and services

AT&T has been in China for more than 20 years, and was the first and still the only foreign company to form a telecommunications services joint venture in China. AT&T already provides services to more than 600 customers in China and has experienced double digit percentage growth for the past three years.

AT&T’s Asia operations have been in place for more than 30 years, with extensive experience serving MNC customers in one of the most diverse regions in the world.  Asia is one of the fastest growing regions for AT&T worldwide, averaging double digit annual revenue growth for the last five years.  In addition to its Shanghai Symphony Telecommunications joint venture in China, AT&T was the first company to obtain a joint venture telecommunications license in India in 2006, and the first foreign company to obtain a Multimedia Services Operator license in Indonesia earlier this year.