Telefonica, a leading telecommunications operator in the Spanish and Portuguese-speaking world, says it will spend EUR1 billion on outsourcing in China and continue to increase its outsourcing in the country until it accounts for 10% of its total global outsourcing.

In statements, Telefonica says it will greatly increase its outsourcing in China and will purchase ten categories of products soon. In addition, the company announces its outsourcing standards, procedures and key product catalog. Telefonica says will set up a testing center at China Netcom's national lab to better serve the parties' joint outsourcing.

Telefonica became a shareholder of China Netcom in 2005. In January 2008, it increased its stakes in China Netcom to 7.22%. It will take about 2% of the stakes of the new China Unicom after China Unicom merges with China Netcom.