Dominant carrier China Telecom has halted its cooperation with Yahoo China after a partnership contract between the two firms expired.
China Telecom was using Yahoo's search services as a value-added offering to Chinese subscribers.
A China Telecom official, who requested anonymity, said that the telecom operator is preparing to launch its own Internet search service within one or two months.
As the largest ISP nationwide, China Telecom controls 70% of the Chinese Internet service market.
Last year, the company gained 21.02 million Internet access subscribers.
The official said China Telecom is eyeing to "offer more" with its own search service.
Presently, China Telecom is operating various domestic and international fixed-line telecom networks and providing telecom network-based voice, data, image, multimedia and information services.
China Telecom cuts ties with Yahoo, eyes own search service
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