China Telecom has signed a deal with City Telecom (H.K.) to launch a ‘one-stop-shop’ for IP-VPN connections between mainland China and Hong Kong. The pair cite the increasing cross border VPN business connecting company branches across various locations between the mainland and Hong Kong as the impetus for the move. China Telecom has been attempting to get more customers in Hong Kong ever since the territory was returned to China in 1999. Meanwhile, the deal gives City Telecom access to the largest communications infrastructure in China. City Telecom is currently in the process of expanding its Metro Ethernet from 1.2 million to 1.8 million homes passed.