German mobile content distributor Jamba and Chinadotcom, the Chinese portal, have agreed to form a joint venture company to focus on global opportunities, but more immediately the deal will see both parties selling their services through each others distribution networks.

Jamba has strong links with several operators in Europe, providing downloadable applications, ringtones and logos, while Chinadotcom operates a profitable business providing SMS and other mobile applications to Chinese customers through its New Palm subsidiary and claims 4.4 million subscribers to its SMS services.

"We are pleased to enter an initial agreement with Chinadotcom focused on mutual wireless initiatives," said Oliver Samwer, CEO of Jamba! AG. "We believe that Chinadotcom's well established distribution network and its strong connectivity with local mobile network operators in China will help us access the world's largest, rapid growth mobile market. In addition, its mobile application and software development capabilities, together with our state-of-the-art mobile technology platform should drive the expansion of product offerings in the mobile communications space for both companies."

Daniel Widdicombe, Chief Financial Officer of Chinadotcom, said: "Further to our currently established wireless business in China, the formation of this joint venture is part of our move to incorporate world-class wireless technologies into the enormous and rapid growing market in China. The joint venture with Jamba is still in its early stages and the financial impact is expected to be minimal in the near term. However, it is intended to enable us to further expand the distribution platform for our wireless products, particularly our in-house developed wireless applications to Europe and the U.S. through Jamba's extensive distribution network."