Tata Communications (formerly VSNL [Get Quote]) has acquired a 50 per cent stake in Beijing-based telecom and IT services firm China Enterprise Communications for an undisclosed sum.

The acquisition was done through its wholly owned subsidiary, Tata Communications International Pte.

The joint venture, the first of its kind in the Chinese telecom sector after the country became a signatory of the World Trade Organisation, will be effective after receiving approvals from Chinese government.

"Tata Communications is planning to increase its presence in emerging markets and China is one of the most important markets. This agreement enables us to provide our services in China, jointly with CEC," Tata Communications Senior Vice-President (Corporate Strategy) Srinivasa Addepalli said. CEC has licences for operating Internet Protocol Virtual Private Network, Internet Service Provider, call centre, online transaction and multi-communication service operations.

It employs around 120 personnel and has 19 points-of-presence in that country.

Tata Communications, in turn, has VPN presence in 120 Indian cities and 19 major business centers in North America, Europe and Asia. The firms will provide high quality networking services to multinational enterprises in China and that country's domestic enterprises.

China International Trust and Investment Corporation owns a majority stake in CEC.

Other investors include SASAC and the management team of the Chinese company. Tata Communications first forayed into China in February by expanding its global VPN service through a Network to Network Interface agreement with China Enterprise Netcom Corporation.