Zhang Chunjiang, board chairman of China Netcom noted that the appointment highlighted a closer cooperation between his company and Telefonica in future. But, the Spanish telecom operator’s equity increase in China Netcom to 9.9 percent is likely to be delayed to 2008 due to procedures, according to Zhang.

Telefonica bought a 3 percent stake in China Netcom for 240 million euros in June 2005 and has further increased its holding to 5 percent at present. (Edited by Chen Dongyi, )