Under the agreement China Telecom will become an MVNO providing tailored mobile services and tariffs aimed at Chinese customers under its own brand name. The service will be managed by Everything Everywhere’s mobile virtual network aggregator Transatel.
China Telecom wants to expand its customer base outside of its domestic market for Chinese residents living in foreign countries and Chinese students and tourists. The 2012 Olympics, happening in London later this year, are reported to be a key factor in establishing services in the country.
The UK service will likely be used as a basis for launching similar services in other European countries. If successful the agreement could pave the way for China Telecom to buy its own network infrastructure in the future.
China Telecom began looking to launch a UK MVNO business in August as part of its plans for greater expansion across the region.
