Tower-sharing Initiative to accelerate the 4G Network System in China

Published By : 20 Aug 2015 | Published By : QYRESEARCH

During the beginning of this year, China Telecom had declared a certain net loss. However, the company is anticipating a bright future during the latter half of 2015, with the telecommunications industry of China getting prepared to share infrastructure with various firms, and there are numerous joint ventures that are in the pipeline. It is expected that the total number of network towers that will be set up under this project will be approximately one million. 

In the face of sluggish economic growth, such a step is anticipated to give a substantial boost to the economy on the whole. Sharing of towers is known to tackle the problem of insufficient prime sites, which on implementation will ensure the effective roll-out of 4G services. On Wednesday, the chief executive and the chairman of China Telecom stated that this will also lead to value addition in the long run and will prove to be beneficial to the company on the one hand and the entire industry on the other. 

In July 2014, China Telecom, China Unicorn, and China Mobile had come together to form business venture which was known as the China Communications Facilities Services Corp, which was later renamed as the China Tower. This was established in order to manage the construction, operation, and the maintenance of the auxiliary infrastructure and the telecom network towers. No formal announcement has been made by the central government on this plan of asset-infusion can be achieved. 

Also, not much has been disclosed about each tower’s valuation that will be injected into the business venture. A senior analyst at Bernstein expressed that greater details are expected with regard to this joint venture that is will be declared in the month of October. Reliable sources stated that the sharing of infrastructure has already begun with the provision of almost 70% of an estimated 60000 towers that are yet to be provided. 
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