AT&T (NYSE:T) and China Telecom (NYSE:CHA) have agreed to broaden the horizon of their relationship dating from 2000, when the two formed a JV titled Shanghai Symphony Telecommunications Co. They will reportedly work together for their mutual benefit in the U.S.A and China.
AT&T will enhance its offerings for business customers in China (NYSE:FXI), where it has enjoyed double digit growth in the last three years. The telecom giants may also jointly develop services such as managed hosting and video conferencing.
China Telecom is looking to improve services to Asian customers in the U.S. by piggy-backing the AT&T network there.
Here’s how these telecom stocks are trading on the news:
AT&T, Inc. (NYSE:T): T shares recently traded at $28.79, up $0.73, or 2.6%. They have traded in a 52-week range of $27.20 to $31.94. Volume today was 9,986,472 shares versus a 3-month average volume of 30,416,000 shares. The company’s trailing P/E is 14.61, while trailing earnings are $1.97 per share.
China Telecom Corp. Ltd. (NYSE:CHA): CHA shares recently traded at $61.41, up $2.67, or 4.55%. They have traded in a 52-week range of $49.70 to $67.97. Volume today was 54,802 shares versus a 3-month average volume of 92,194 shares. The company’s trailing P/E is 20.47, while trailing earnings are $3.00 per share.