AT&T and China Telecom have signed an agreement to expand services to multinational companies, the companies jointly announced Wednesday.

Dallas-based AT&T has agreed to provide broader-reaching Internet services in China, and the two companies are looking into providing services such as telepresence, managed hosting, cloud-based services, network integration services and enterprise mobility solutions.

AT&T and China Telecom are also looking to offer bilateral WiFi roaming services between the two countries. The corporations hope this will lead to simpler contracting and billing arrangements, even higher levels for MPLS-based services, lower costs and an expanded portfolio of services between the U.S. and China.

Our customers have told us that enhanced communication services between China and the rest of the world is a key factor for improving their competitiveness and global expansion, Roman Pacewicz, AT&T Business Solutions senior vice president of marketing and global strategy said in a statement.

Developing this strategic framework agreement will allow customers with operations in China to take advantage of the same type of business transformational services they have in other parts of the globe, he said.

China Telecom was equally enthusiastic about the agreement.

Through the strategic collaboration between China Telecom and AT&T, China Telecom will be able to enhance its end-to-end service capabilities via AT&T networks in the US, Kou Fengda, managing director of China Telecom's global business said in the statement.   

State-owned China Telecom is the largest provider of fixed-telephone and broadband services in China. The two have had a partnership since they created a joint venture, Shanghai Symphony Telecommunication Co. in 2000.

AT&T is the largest Internet service provider for American companies, according to comScore. State-owned China Telecom is the largest provider of fixed-telephone and broadband services in China.

Shares of AT&T are up 2.53 percent to $28.77 in afternoon trading.