BEIJING, Sep. 22, 2009 (Xinhua News Agency) -- Taiwan media reports that Chinese mainland-based China Telecom (0728.HK; CHA.NYSE) and Taiwan-based ChungHua Telecom have signed memorandum of understanding (MOU) on cooperation in development of ICT (information and communication technology) and IENet (intelligent environment service network).

The two sides are expected to set up a joint venture in future.

The cooperation is the first of such for telecom operators of Chinese mainland and Taiwan to join hands in developing ICT industry. ChungHwa Telecom (NYSE:CHT) confirmed the collaboration in IENet and ICT industries, but didn't comment on the joint venture issue.

According to media reports, the joint venture will be established by ChungHwa Telecom, China Telecom System Integration Co., Ltd., a wholly owned subsidiary of China Telecom's parent company China Telecommunications Corporation, and IENet firms from Chinese mainland and Taiwan.

The two firms have decide to first start the cooperation project in Fuzhou, capital city of east China's Fujian province.

As a self-developed product of ChungHwa Telecom, IENet helps enhance the operation efficiency of air conditioner equipment to save electricity by installing controlling and sensing devices to monitor temperature, humidity, CO2 level and human motion, and managing the air conditioning automatically with the network system.