NEW YORK (TheStreet) -- Shares of Alibaba (BABA) - Get Alibaba Group Holding Ltd. Sponsored ADR Report were gaining 3% to $84.71 Friday after the Chinese e-commerce company announced it will work with China Telecom (CHA) - Get China Telecom Corp. Ltd. Sponsored ADR Class H Report to bring mobile phones with online shopping apps to people in rural areas of China.

The phones will be called "Tianyi Taobao Shopping Handsets," according to Alibaba-owned news site Alizila. The new phones either come with the Mobile Taobao shopping app pre-installed or will run Yun OS, a mobile OS developed by Alibaba, depending on the user base.

Users who buy the phones will also be eligible to receive four months of free 2G data services from China Mobile.

A total of 14 models of the Tianyi Taobao Shopping Handsets will be available through China Telecom stores across rural China.

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The six more expensive smartphones in the lineup will be made by Coolpad, Hisense, and TCL and will have the Mobile Tabao app installed. The remaining models will be made by smaller brands such as Uniscope, Cyton, and Kingsun, and will run Yun OS.

BABA data by YCharts

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