Telefonica eyeing more partnerships with Chinese telcos

Spanish telecom group Telefonica is seeking to establish and expand long-term, strategic partnerships with Chinese telecom companies, chairman and CEO Cesar Alierta, quoted by a Xinhua News report said.

The Xinhua report said Alierta made the remark during a meeting with Chinese Vice Premier Hui Liangyu at Zhongnanhai, the headquarters of the Chinese government.

Alierta is in Beijing to attend the global board meeting of the Telefonica group, which was hosted by the company's cooperative partner in China, China Netcom Group.

Telefonica expects to increase its stake in a joint venture with China Netcom, the second largest fixed-line operator in China, from 5% to 9.9%, Alierta said.

The joint venture, established last November under a strategic alliance agreement between CNC and Telefonica, holds controlling shares in PCCW, a Hong Kong-based phone operator.

During the meeting, Hui said the Chinese government encourages and supports Chinese telecom companies to conduct cooperation with Telefonica and other multinational telecom companies on a mutually beneficial basis in order to learn from their expertise and experience and achieve win-win results.

Alierta said as one of the major players in global telecom market, Telefonica is ready to further its cooperation with Chinese firms and share with them its experience in telecom operation.