Russia and China negotiating GSM joint venture

The framework for the current discussions was set up when Russian president Vladimir Putin visited China on a state visit in 2002. Global Mobile has learned that Putin secured an agreement with Beijing to pursue a deepening of relations between Chinese and Russian telecoms companies - out of which has sprung the talks between MegaFon and China Telecom. China Telecom does not have a mobile services license, though it does operate PAS-based limited-mobility services under the Xiaolingtong brand, which had about 25 million users at end-August. The carrier soon plans to introduce PAS/GSM handsets and is expected to receive a full mobile license when the government issues 3G licenses later this year. According to Global Mobile, MegaFon is also eyeing a stock market debut this year - a move that would enable the company to fund expansion into Chinas mobile market.