The strategic alliance between China Netcom Corporation (CNC) and leading Spanish telecom group Telefonica has opened up the possibility of Telefonica gaining access to Chinese fixed line and mobile markets. However, the two operators have given themselves six months to carry out exclusive negotiations for signing an agreement for cooperation in a number of areas. If a final agreement is reached, Telefonica would have to increase its stake in CNC from the current 5 per cent to 9.9 per cent, thus entitling it to a second representation on the CNC board of directors. The two operators plan to cooperate in areas such as management, purchase of content and equipment, ADSL TV and call centres.