China Telecom, SGCC Partner on FTTH Networks

January 24, 2011

China Telecom (NYSE:CHA, 0728.HK) has signed a framework agreement with the State Grid Corporation of China (SGCC) to cooperate on the construction of fiber-to-the-home (FTTH) networks, the state-owned Xinhua News Agency reported July 2. The move indicates that the two companies have decided to combine forces to compete in the new “three networks” sector.

The State Council announced on July 1 the first batch of cities to pilot the convergence of the “three networks,” or telecommunications, cable TV and internet networks.