BEIJING -- China Telecom Co Ltd signed a strategic partnership framework agreement on Wednesday with France Telecom-Orange, allowing both companies to better complement each other's networks and services, the companies said in a news release issued after the signing of the agreement.

China Telecom, the world's largest fixed-line telephone operator, and Orange believe the agreement will bring benefits to both by leveraging China Telecom's strengths in China and the Asia-Pacific region and Orange's distinct geographic reach in Europe and Africa, according to the release.

Under the agreement, Orange has agreed to allow China Telecom to extend Orange's IPVPN (Internet Protocol Virtual Private Network) services in Europe, Africa and the Middle East to the subsidiaries of multinational Chinese companies, according to the release.

Meanwhile, China Telecom has agreed to provide managed outsourced and field services to Orange's multinational customers in China to allow Orange to improve IPVPN services for its enterprise customers in China and other Asia-Pacific countries, according to the release.

Both companies have agreed to complement each other's network development planning and deployment in their respective regions, focusing on underwater and terrestrial cable links between Asia, the Asia-Pacific region and Europe, as well as ensuring improved connectivity to Africa, the release said.

Orange will facilitate the ability of China Telecom's customers to roam on WiFi hotspots in Europe, while China Telecom will improve the ability of Orange's customers to roam on WiFi hotspots in China, the release said.

The agreement may be extended to other areas at a later date, according to the release.

China Telecom now has one of the world's largest CDMA networks, with full coverage across China and 114 million CDMA subscribers as of August 2011.

Orange is one of the world's largest telecom operators, with 170,000 employees and 217.3 million customers in 35 countries as of June 2011.