Light Reading
China's three major operators have formed a joint venture company to manage the country's mobile towers.

Chinese Operators Form Tower JV

Robert Clark
News Analysis
Robert Clark
7/11/2014
100%
0%

In a move that could save them billions of dollars in capital and operating costs each year, China's three state-owned operators have formed a joint venture to own and manage their mobile towers.

China Mobile Ltd. (NYSE: CHL) will own 40% of the China Communications Facilities Services Co. Ltd, the company said in a statement to the Hong Kong Stock Exchange today. China Unicom Ltd. (NYSE: CHU) will own a 30.1% stake and China Telecom Corp. Ltd. (NYSE: CHA) the remaining 29.9%.

The company will be responsible for the "construction, maintenance and operation" of telecom towers plus "ancillary facilities including base station control rooms, power supplies and air conditioning as well as interior distribution systems." It will also manage the "provision of outsourced services of base station equipment maintenance."

The formation of such a venture was first outlined in May. (See China Operators Mull Tower Spin-off.)

The new company will have paid-in capital of 10 billion Yuan Renminbi (US$1.6 billion). However, China Mobile said discussions on which assets would be held by the new entity were still at "a preliminary stage," so it's currently unknown how many towers might be built and managed by the new venture.

Whatever assets are built and managed by the new venture, though, it's clear that it will reduce the total cost of ownership (TCO) of the operators' mobile networks as all three invest heavily in their 4G LTE infrastructure and services. (See China Issues 4G TDD Licences, China Issues More 4G Licenses, China Unicom Calls 4G Tender and China Mobile's Capex Blowout.)

Robert Clark, contributing editor, special to Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
SachinEE
50%
50%
SachinEE,
User Rank: Light Sabre
7/29/2014 | 6:54:36 AM
Re: Sweet deal?
For China Mobile, this sounds like a very sweet deal considering that they will definitely have practical control of the entire venture. Am not so sure about the other mobile operators entering the venture though and, given the Chinese government's hands on involvement in the IT industry it may be safe to say that beyond the money they will save on infrastructural expenditure they will not gain much else. Lets hope that the savings made by all the players in the venture will trickle down to the Chinese consumers as well sooner rather than later.
nasimson
50%
50%
nasimson,
User Rank: Light Sabre
7/12/2014 | 9:44:30 AM
Too big. Too late
I am actually a little surprised to see this happening in mainland in 2014. Such a model is operational in India since last seven years, if I am recalling it correctly. I saw a speaker talking about it during annual Common Wealth Telecom organisation in New Delhi in 2008
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
LRTV Custom TV
VeEX – Live from the Show

8|21|14   |   5:58   |   (0) comments


An overview of VeEX Test and Measurement solutions including TX300S multi-service test set with VeExpress cloud-based management system, UX400 universal modular platform supporting 100G testing, and the redesigned RXT modular platform.
LRTV Custom TV
Transitioning CE 2.0 Networks Into the SDN & NFV Era With Telco Systems

8|19|14   |   5:19   |   (0) comments


Telco Systems' Ariel Efrati (CEO) and Moshe Shimon (VP of Product Management) discuss virtualization and how the company's new Open Metro Edge solution utilizes the SDN and NFV concepts to accelerate and orchestrate service delivery through its innovative product portfolio and software applications.
LRTV Custom TV
NFV Myths: Is NFV Still Several Years Away?

8|11|14   |   1:13   |   (0) comments


Some say that NFV (network functions virtualization) is still several years away from being implemented on mobile operator networks. This isn't the case. Operators can get started on their paths to NFV now, as this short video from Skyfire shows.
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Light Reedy
Numbers Are In: LR's 2014 Salary Survey

7|24|14   |   1:25   |   (7) comments


Our fourth annual Salary Survey paints a picture of who's hiring, firing, earning, and yearning for a change in the telecom industry.
LRTV Custom TV
Driving the Network Transformation

7|23|14   |   4:29   |   (0) comments


Intel's Sandra Rivera discusses network transformation and how Intel technologies, programs, and standards body efforts have helped the industry migration to SDN and NFV.
LRTV Custom TV
Distributed NFV-Based Business Services by RAD

7|18|14   |   5:38   |   (0) comments


With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
LRTV Custom TV
MRV Accelerating Packet Optical Convergence

7|15|14   |   6:06   |   (0) comments


Giving you network insight to make your network smarter.
LRTV Custom TV
NFV-Enabled Ethernet for Generating New Revenues

7|15|14   |   5:49   |   (0) comments


Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
LRTV Custom TV
Symkloud NVF-Ready Video Transcoding, Big Data

7|9|14   |   3:41   |   (0) comments


Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Today's Cartoon
Hot Topics
Level 3 Does Big Data Differently
Carol Wilson, Editor-at-large, 8/21/2014
IoT Alert: Samsung Snaps Up SmartThings
Mari Silbey, Independent Technology Editor, 8/15/2014
Comcast Streams Back to School
Mari Silbey, Independent Technology Editor, 8/21/2014
Line-Powered Phone Lines: A Hot Topic Again
Carol Wilson, Editor-at-large, 8/20/2014
Analyst: Ericsson, Oracle Top Shrinking SDP World
Carol Wilson, Editor-at-large, 8/19/2014
Like Us on Facebook
Twitter Feed