Xiaomi, China Telecom Ally on Smart Home, Handset Sales

Chinese Android device maker Xiaomi and telecom operator China Telecom (NYSE: CHA; 0728.HK) have signed a cooperation agreement that will see both companies collaborate on smart home technology, e-commerce, internet finance, and handset sales.

China Telecom will gradually establish smart home models in each of its flagship retail stores in various provinces, allowing customers to try out and purchase Xiaomi smart home devices. Xiaomi will also provide China Telecom with exclusive smart router technology, selling its routers via China Telecom’s distribution channels. Both sides plan to collaborate on exploring custom network router technology, TV digital decoders, and intercommunication between user accounts.

China Telecom will also give Xiaomi access to the payment and credit top-up interface for all of its domestic mobile, landline, and broadband services. This will allow Xiaomi users to top up their mobile credit directly through the Xiaomi Store.

China Telecom’s payment service BestPay will be incorporated into the Xiaomi Store, where users can continue to take advantage of BestPay benefits such as sending red envelope cash prizes. A link to the Xiaomi store will also be embedded in the BestPay client.

The two firms will also ally on marketing. For example, China Telecom subsidiary Tianyi Telecom Terminals will become the exclusive sales agent for the Xiaomi Hongmi 4X smartphone, and will also serve as one of the primary sales agents for the Xiaomi Note 4X.

In addition, both parties will soon launch an unlimited data package called the “Mifen Card” to accompany China Telecom’s 4G + Internet services. The package is expected to go on sale in the Xiaomi Store in early June.

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