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
Flash Poll
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
LRTV Huawei Video Resource Center
Microgenesis on Huawei's Switches

9|19|14   |   3:57   |   (0) comments


Microgenesis is a solutions and system integrator company in the Philippines whose areas of expertise include data centers, networking and security products. In this video, Executive Director Jeffrey Choa talks to us about his customers needs and they benefit from using Huawei switches.
LRTV Huawei Video Resource Center
Network Solutions Help the Philippines Jump Ahead

9|17|14   |   2:59   |   (0) comments


In the past, the Philippines has under-invested in technology. Now, the CEO of Softshell talks about how Huawei products help the Philippines jump ahead as the economy improves.
LRTV Huawei Video Resource Center
VCS Observation for Safer Cities in the Netherlands

9|17|14   |   5:20   |   (0) comments


Holland's VCS Observation has been operating for 22 years. Its main goal is to get cities safer. CEO Wim van Deijzen tells us some of the challenges his company faces and how Huawei is helping to overcome these challenges.
LRTV Huawei Video Resource Center
A Conversation With Serbia's Ministry of Interior

9|17|14   |   4:38   |   (0) comments


At HCC 2014, the Assistant Minister of the Ministry of Interior of the Republic of Serbia talks to us about his projects and corporation with Huawei. Solutions like Safe City and E-Government and services like cloud computing are just some of the areas his department is interested in.
LRTV Huawei Video Resource Center
IHS Analyst Discusses eLTE at CCW 2014

9|10|14   |   7:09   |   (0) comments


Thomas Lynch, associate director of critical communications at IHS Technology, talks about broadband in critical communications.
LRTV Huawei Video Resource Center
TCAA on Huawei eLTE: A Broadband Solution for Mission-Critical Communications

9|10|14   |   2:29   |   (0) comments


At CCW2014 in Singapore, the TCCA's Phil Kidner talks about the importance of broadband data for critical communications.
LRTV Custom TV
Spotlight on Cisco: SDN for Optical Networks

9|8|14   |   9:27   |   (0) comments


Cisco's Greg Nehib talks OpenFlow and more on the 'Software-Defined Networking for Optical Networks' panel at the Big Telecom Event in June 2014.
LRTV Custom TV
Cisco's Evolved Programmable Network (EPN)

9|8|14   |   4:05   |   (0) comments


A look at the various demos Cisco showed at Light Reading's Big Telecom Event highlighting Cisco's EPN innovation and how SDN and NFV technologies are enabling a variety of new services.
LRTV Huawei Video Resource Center
The Future of Ultra-Broadband, With Kevin Kelly (UBBF2014)

9|5|14   |   1:13   |   (1) comment


If you think the technological changes we've seen up to now are astounding, just wait until you see what the future has in store. Discuss upcoming breakthroughs with Kevin Kelly, Founding Executive Editor of Wired Magazine, at the Huawei Ultra-Broadband Forum on September 24.
Upcoming Live Events!!
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
AT&T: We'll Bundle Fixed Wireless & DirecTV
Mari Silbey, Independent Technology Editor, 9/15/2014
New NFV Forum Focused on Interoperability
Carol Wilson, Editor-at-large, 9/16/2014
NFV & The Data Center: Top 10 Takeaways
Sarah Reedy, Senior Editor, 9/18/2014
Connecticut Cities Crowdsource Gigabit Nets
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/15/2014
Pics: LR's Women in Telecom Breakfast
Sarah Reedy, Senior Editor, 9/16/2014
Like Us on Facebook
Twitter Feed