Microsoft is set to expand its reach in China after signing a deal to develop instant messaging (IM) software with China Telecom.
Under the terms of the deal, Microsoft's MSN China division will work with the Chinese telco to develop a platform based on Windows Live. According to the Pacific Epoch, the product will "offer the basic functionality of Microsoft's Windows Live Messenger as well as China Telecom's communication and internet services".
Microsoft, whose messaging service already has 268m users worldwide, also hopes to harness China Telecom's 120m customers
The partnership comes as Microsoft updates its Windows Live service, adding several social networking features. The company has included photo and music-sharing features through deals with Photobucket, Flickr, iLike and Pandora. Microsoft hopes to attract users to Windows Live by "simplifying the web experience and providing one central place where users can organise and manage information," says Brian Hall, Windows Live's general manager.
China Telecom is one of China's largest communications companies and owns the world's biggest fixed-line telephone network. In July, the firm said it would spend CNY80bn (USD11.7bn over the next three years to expand its mobile phone network.
China Telecom also hopes to boost its number of mobile users from 43.2m to 100m by 2010 in a bid to compete with market leader China Mobile.
StrategyEye's related companies: China Mobile, Flickr, iLike, MSN China, Pandora International, Microsoft, China Telecom, Photobucket
