Singapore Telecommunications (SingTel) and the China Telecom (Hong Kong) group have agreed to work together to look at business opportunities in the SAR.
SingTel said yesterday it signed a memorandum of understanding with the CTHK group.
CTHK group is the non-listed parent of CTHK, the listed red-chip company.
'In the [memorandum] SingTel and CTHK agreed to work closely with each other to explore and provide telecommunications services such as multimedia and other value-added services,' SingTel said.
SingTel said the two firms would look at the possible opportunities arising out of the liberalisation of the SAR's telecommunications market.
For CTHK group, a move into the Hong Kong market appeared strange given it could potentially bring it into competition with Hongkong Telecom, of which it is the second-largest shareholder, analysts said.