Telefonica and Chinese mobile operator China Unicom have signed a strategic procurement collaboration agreement to select smartphones based on shared specifications at improved economies of scale. The aim is to help both companies deliver improved data services to a broader group of their customers in China, Latin America and Europe. In a statement, the companies said the first joint project has been completed with the purchase of 4G smartphones from the manufacturers Lenovo and TCL. “As a result of a series of joint processes since the end of 2014, including joint industrial trends research, joint product specifications, and joint Global RFQ negotiations, it has been possible to achieve important economies of scale to acquire cost-effective smartphones,” said the companies.
The 4G handsets acquired from Lenovo and TCL will be available in the second half of 2015 in China, Europe and Latin America. Both China Unicom and Telefonica have developed specific consumer propositions and go-to-market plans in all countries to maximise their potential. The companies described the move as an innovative joint procurement strategy between two leading telecoms operators and agreed to continue working on other joint strategic initiatives.
Telefonica has been present in the Chinese telecommunications market since 2005 when it first acquired a 3 percent stake in China Netcom, which was then sold to Unicom in 2008. The Spanish operator then increased its stake in China Unicom to almost 10 percent in 2011 before selling around half of its shareholding in June 2012 for some USD 1.4 billion followed by another half in November last year for around USD 860 million.
