Telefonica has sought to strengthen its presence in the world’s largest mobile market by signing a “business cooperation framework agreement” with China Unicom, the country’s number two mobile operator. Telefonica is already the largest private investor (with a 5.38 percent stake) in the new China Unicom, a deal that goes back to 2005 when it invested in China Netcom, now merged with China Unicom. Specific details concerning the new partnership were not disclosed, but a statement from Telefonica says the agreement focuses on “cooperating to develop integrated and mobile and 3G services,” given that both operators share “a common integrated business model and mobile technologies for 3G (WCDMA).” In addition, the agreement covers a number of areas of collaboration, “such as developing innovative services, international business, joint procurement of network equipment, devices and handsets, platforms for innovative and advanced services, and services to corporate customers, among others.” 

Meanwhile, China Unicom has completed the acquisition of certain fixed-line assets from its parent company and from China Netcom. On 31 January, the merger between China Unicom and China Netcom was completed and its assets are now integrated into China Unicom. Last week, it was also reported that Huawei, Motorola and Ericsson had been named as the biggest winners in the operator’s latest WCDMA infrastructure tender. The operator is believed to have issued a tender to cover 55 cities in 30 provinces; the first stage in a roll-out to cover 282 cities with a total capex of around US$11 billion during 2009.