China Telecom has inked a Mobile Virtual Network Operator (MVNO) deal with Everything Everywhere in the UK.
Under the deal, the Chinese mobile phone operator will use Everything Everywhere's network to offer mobile phone services to Chinese businessmen, residents and tourists in the UK. The virtual network is scheduled to be launched in the first quarter of 2012.
A mobile virtual network operator does not own the network but rents it from another company to offer mobile phone services. For example, in the UK, Tesco Mobile is an MVNO which is based on O2's network, reports Mobile Today.
The amount of the deal has not been disclosed by either company. The deal is the first time a Chinese telecom company has done a MVNO deal with a UK operator.
"Entering the UK mobile market is a strategic move for China Telecom. We selected Everything Everywhere based on the strength of its network, and its proven track record of getting MVNOs up and running quickly and efficiently," said Yan Ou, managing director of China Telecom in Europe.
"We are keen to launch the service in the UK as soon as possible as there is a real gap in the market for the provision of tailored mobile services and competitive tariffs aimed at the growing the Chinese population in the UK," he added.