China’s Telecom Tower Company May be Established in Q3
Source: View: 216 Date: 2014-05-29

As the news of building a joint venture company by China three telecom operators spread, it is informed that, the national telecom tower company is expected to be formally established in the third quarter, after which China Telecom may get the most benefits, while the operator may have difficulty in building insufficient tower to improve the 4G base station construction. Moreover, China Communications Services Corporation ed subordinated to China Telecom will be responsible for undertaking the tower joint venture company.

Previously, on China Mobile Shareholders Meeting, Xi Guohua, Chairman of China Mobile said, the Joint venture tower company invested by three operators will be established in the third quarter of this year and it will be injected into 2G, 3G and 4G tower infrastructure assets; the new infrastructure will be added at first and then the other existing assets.

According to industry analysts, the biggest beneficiary of the tower joint venture company will be China Telecom, followed by China Unicom. Since so far, China Mobile has the maximum amount of towers, followed by China Unicom. The lack of tower of China Telecom is due to that, the company entered into the mobile communication industry when it was already at the age of 3G, so it does not need towers before; and when China Telecom adopted CDMA technology, in regard of the advantage of higher power and lower frequency of CDMA base station, the operator could provide good signal coverage by using only a few of base stations and towers.

At the moment, the reason why the all participators aim to set up the tower joint venture company is that they believe it can realize the resource sharing. However, senior executives of China Mobile which invests huge amounts of construction point out that, the establishment of the telecom tower joint venture company may contribute to cutting capital expenditure, but there is no great help to cut that of this year.


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