BT (NYSE: BT) and ZTE (Shenzhen: 000063.SZ) have created an R&D pact to explore new opportunities in next-gen wireline, wireless and mobile services.
Under the terms of the agreement, the partnership will combine ZTE equipment and network solutions with BT's experience in delivering telecom services to not only its native UK, but throughout the world via its global divisions.
As the first agreement to be struck between the service provider and vendor, BT and ZTE have set a goal of developing standards that they claim will drive the "interoperability and convergence of global communications systems."
Already, the two companies are making progress on the venture with research underway at BT's innovation center at Adastral Park in Martlesham and at ZTE's China-based R&D center.
To conduct the R&D project BT said that it won't require new staff with funding coming from its existing £684 million ($1.1 billion) R&D budget.
The R&D relationship has value to both ZTE and BT. Having an R&D relationship with a large global carrier like BT will help especially as they continue to establish a presence outside of their native China, while BT will be able to drive closer collaboration with a major supplier as they shape new service initiatives.
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