Shenzhen Sangfei Consumer Communications Company will operate Royal Philips Electronics global mobile phone service from now on. The two companies have reached an agreement that clarifies the terms under which this transfer will take place.

As a result of the new deal that the two companies have signed, Shenzhen Sangfei will have the right to operate Philips' global mobile phone service. That is a major change that will affect both companies over the next years. An important brand can do half of the selling by itself. This is what the Chinese company relies on in order to make their agreement profitable.

Only in year 2006, Philips' Mobile Phone business has reached sales figures of about EU320 million. This makes it a name worthy of further expansion and a head start for Shenzhen Sangfei towards great profits, if they are capable of efficiently carrying on that name.

The agreement regards trademark permission and intellectual property right transfer, which give rights over Philips' phone services. The extent of this deal is a global one, which makes it even more profitable for Shenzhen Sangfei, the subsidiary of China Electronic Corporation (CEC).

Cooperation between the two companies goes back for an even longer time, as it has been last year when CEC has announced the purchase of Philips' mobile phone service. This has meant a transfer of rights of the Philips brand for the next five years anywhere in the world. The deal regards an exclusive license for the "Xenium" brand and also 25 percent of the company's stakes.

The transfer will also be reflected in the leading positions of the overtaken company. The original senior management team and marketing channels that Philips used to work with will also be changed according to Shenzhen Sangfei's interest. CEC currently produces and sells mobile phones under the name of Amoi, another brand that it owns.