The software giant announced today it is forming a joint venture with Taiwan’s Chunghwa Telecom to develop telecommunication services together and gain exposure to small and medium-sized businesses in mainland China.

Through its alliance with Microsoft, Chunghwa Telecom hopes to add more value to its telecom and internet services, including internet protocol television (IPTV), voice-over-internet-protocol (VoIP), and other multimedia services, Chunghwa Telecom's Chen said.

The company also hopes to extend it to Taiwan businesses operating throughout the greater China region, Chen added.

Taiwan’s biggest telecom operator hopes to broadcast TV via broadband networks using Microsoft's Internet television software, currently in its initial stage trials, as part of a broader plan to expand its TV business and compete with traditional cable TV operators in the region.