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Google signs internet advertising deal with China Telecom
Google is to sell advertising on 400 websites owned by China Telecom in a move that will see it strengthen its position in the world's second-largest internet market.Baidu.com is the most popular search engine in China but the new agreement, which will see China Telecom and Google sharing revenue from online advertising, will allow Google to keep pace.
Foo Xinghua of Analysys commented: "This is a big win for Google because Microsoft and Baidu both wanted this agreement with China Telecom. China Telecom likely picked Google because they have better technology for web ads."
Google will now have access to a plethora of sites that provide information such as business directories.
According to Analysys research, Baidu has cornered more than half the Chinese search market, while Google has 17 per cent and Yahoo - which is very popular in Asia - has 13 per cent.
China Telecom is the largest provider of telephone and internet services in the world's most populous country.
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Google News posted on 26 April 2007
