Asia Pacific Telecom and China Telecom agree on procurement deal

Taiwan-headquarters Asia pacific Telecom has agreed on a joint procurement deal with China-based Chain Telecom.

The deal, which is due to kick off in the second quarter of this year, centres on three major areas of collaboration, according to Taiwanese media reports.

It has been reported that the two companies will pool their procurement functions to improve sourcing of certain smartphones. It is expected that the shared procurement will involve purchasing of not only mobile handsets, but also tablet computers.

"The two companies will further expand their cooperation to the cross-border data roaming service sector, following their cooperation in the voice roaming service last year," according to China Tech News.

"Vincent Chih, chief executive officer of Asia Pacific Telecom, reportedly revealed that the company bought 1.1 million mobile phones in 2010 and it plans to buy 1.2 million to 1.3 million terminal devices this year. It plans to introduce the Chinese mainland mobile phone brand Coolpad and Samsung's tablet computers."

The report predicts that Asia Pacific Telecom will increase the procurement ratio of smartphones from 11% in 2010 to between 20% and 25%.

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