China Telecom and the State Grid Corporation of China have signed a strategic framework agreement in Beijing to jointly promote Fiber to the Home construction.

Under the agreement, the two parties will cooperate in six sectors. First, they will discover complementary resource activities in the infrastructure sector to jointly promote the FTTH construction. Second, they will enhance their cooperation in the market resource sector to implement comprehensive information services, including fiber access, broadband services, integration services, and industry applications. Third, they will enhance sharing and cooperation in the emergency information sector and provide protection priority to each other for emergency power supply and emergency communication support. Next, they will jointly promote research and application of communication technologies related to the smart grid. Fifth, China Telecom will help the State Grid Corporation of China strengthen its management during the construction of the smart grid, improve its communication efficiency, and reduce its communication costs. Finally, the two parties will provide services to each other to reduce construction and management costs.

At the same time, the two parties will implement cooperation in the research of major technology features and jointly create a sample for the integration of information and industrialization by reinforcing the sharing of infrastructure, building up an emergency coordination system, and stimulating the development of the industry.

A representative from China Telecom told local media that China Telecom will provide full information services to the State Grid Corporation of China, covering basic communication circuits, electric power industry applications, and communication applications for effective coordination of office convergence, via its fixed line network, mobile network, and the Internet.

Wang Yimin, director general for the smart grid department of the State Grid Corporation of China, said that information is the foundation for improving the smart grid. The cooperation with China Telecom will be beneficial for the perfection of its electric power network construction.