Spanish and Chinese telecommunication giants Telefonica and Huawei on Monday announced an agreement for the construction of a "large scale" virtual network to provide voice and data in LTE 4G networks in Latin America and Europe.

The agreement covers Argentina, Brazil, Colombia, Costa Rica, El Salvador, Guatemala, Mexico, Nicaragua, Peru, Panama and Uruguay in Latin America, and Spain and Germany in Europe.

Huawei's virtual Evolved Packet Core (vEPC) solution, known as CloudEPC, will allow for greater levels of traffic on a network that is agile and quick to adjust to new demands, while at the same time offering reduced production costs and integration into existing Telefonica networks.

Huawei and Telefonica have been testing the performance of Huawei CloudEPC in Telefonica's NFV Reference Laboratory in Madrid.

"Huawei is leading in the All Cloud strategy which is offered to operators. This Cloud EPC represents an important advance in the route map for the virtualization of Telefonica and strengthens our association as the main provider of EPC to Telefonica."

"We are very satisfied that Telefonica has shown confidence in Huawei and this further strengthens our cooperation," commented Michael Ma, the president of Huawei's Cloud Core Network.

Email: lijia@nbd.com.cn