China Unicom and Telefonica Caught Getting Snuggly

China Unicom and Telefonica (NYSE: TEF), both big names in global telecommunications, have announced an extended partnership in which they would provide mutual infrastructure support and continue an existing alliance. The specifics are pretty vague, but after all is said and done, China Unicom will own 0.88% of Telefonica, and Telefonica will own 8% of China Unicom after investing $1 billion into one another. A mutal, financial vested interest is a great way to solidify a strategic partnership, and will hopefully reward both parties in the long run. China Unicomis is still nailing down its iPhone agreement, and could use the extra help competing against China Mobile (NYSE: CHL), who is currently the world’s second-largest mobile service provider (Telefonica has third place).  Conversely, Telefonica could stand to profit by investing before the iPhone starts spreading across China.  For more info, hit the links.

[via Telefonica, China Unicom]