China Netcom and Spain's Telefonica have signed an MOU to explore possible areas of strategic cooperation which would be beneficial to both parties.
The companies will look into working together on fixed-line, broadband, domestic and international long distance communications. More telling, the companies will explore the exchange of certain managerial, technical and operational skills and resources.
Telefonica will also be entitled to nominate a representative to the board of directors of China Netcom , and the number of representatives that Telefonica is entitled to appoint to the Board shall increase if its ownership stake increases further.
Additionally, a director nominated by Telefonica shall be entitled to sit on the audit committee or the strategic planning committee of China Netcom.