Chinese telecom operator China Telecom has signed a strategic framework agreement with China Aerospace Science and Technology Corporation in Beijing to cooperate in satellite communication and GPS sectors.

This is the first time for China Telecom and CASC, the two companies that took over China Satellite Communications Corporation's businesses on its separation, to reach strategic cooperation. In April 2009, China Satcom became a wholly-owned subsidiary of CASC while its basic telecom businesses merged into China Telecom. Rui Xiaowu, former general manager of China Satcom was appointed vice general manager of CASC and Guo Hao, former vice president of China Satcom was appointed assistant general manager of China Telecom.

Under this five-year agreement, China Telecom and CASC will implement in-depth cooperation in areas such as information services, digital resources, digital maps, and navigation services. China Telecom will provide CASC with quality and comprehensive information services; while CASC will give preferential satellite space segment resources and satellite communication services to China Telecom to support the latter's construction of high coverage 3G networks.

For satellite communication cooperation, the two parties will join hands in the commercial use of satellite telecom system with independent intellectual property rights. In addition, they will jointly develop digital maps, mobile location, and navigation services to launch differentiated mobile information products based on the location services.