LONDON-Vodafone Group plc and China Mobile (Hong Kong) Ltd. announced a strategic alliance agreement that provides for close cooperation in many areas. The two companies first partnered last October.
The agreement does not include a further equity interest by Vodafone, which purchased 2 percent of the Chinese operator’s shares last year. However, a Vodafone statement said, “Vodafone has also indicated to CMHK that it would wish to increase its equity interest in CMHK, currently just over 2 percent, should further equity participants in CMHK be made available to foreign telecommunication companies.”
The agreement includes the exchange and sharing of corporate management, technical and operation expertise and resources; joint research and development; the introduction of global products and services; and the development and implementation of standards and protocols relevant to mobile communications.
In addition, Chris Gent, chief executive of Vodafone, will become a nonexecutive director of CMHK.
The agreement furthers Vodafone’s position in the lucrative Chinese market, which is expected to surpass the United States this year as the largest mobile market in the world.
