China Telecom, Unicom ink strategic agreement

China United Network Communications Group Co Ltd and China Telecommunications Corp inked a strategic resource-sharing deal on Wednesday, dispelling rumors of a possible merger between the two firms.

The deal is the latest joint efforts by the country's second- and third-largest carriers to take on industry leader China Mobile Communications Corp.

Under the pact, China Unicom and China Telecom will share resources to jointly build networks, explore innovative Internet businesses, as well as negotiate international roaming rates.