AT&T (NYSE: T) and China Telecom announced that they would expand AT&T’s existing IP-VPN service in China and connect the China Telecom and AT&T MPLS-based IP networks in the United States
AT&T could use the new business. Its landline business in the US has begun to shrink. In its wireless business, it compete with Verizon Wireless and Sprint Nextel (NYSE: S) in an American market that is no longer growing. And, AT&T’s deal to buy T-Mobile has been effectively blocked by the FCC. AT&T’s broadband U-verse has also had trouble making inroads into a segment controlled by cable companies
In the announcemnt of the partnership the two companies said
“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.”
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