China Telecom teams up with Everything Everywhere for UK deal

The deal will target Chinese residents and businesses in the UK

Everything Everywhere (EE) has partnered with China Telecom to provide services from the mobile virtual network operator (MVNO) using its own network.

The move, which will see services offered in the first quarter of 2012, will see China Telecom target Chinese residents, businesses and visitors in the UK. The company expects its recognisable brand to appeal to people or businesses with affiliations to China.

An MVNO is a mobile phone operator, in this case China Telecom, that does not own a network infrastructure but leases another network operator's assets to sell products on.

The amount that China Telecom is paying EE for the service has not been disclosed.

This will be the first time a Chinese telecom operator has launched MVNO services outside China.

The move increases Everything Everywhere's portfolio of MVNO partnerships to 24, with companies such as Virgin Media and Talk Talk Business already using its infrastructure.

EE is a joint venture between T-Mobile and Orange following their merger in mid-2010. The group consequently has the biggest 3G network with the widest coverage in the UK.

"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 (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."

The service will be managed by Transatel, Everything Everywhere's mobile virtual network aggregator.