A new collaboration agreement involving three of the Asia’s biggest telecoms firms is expected to provide a major boost to the accessibility of 4G in China.
China Unicom, China Mobile and China Telecom recently signed a deal which will see them share basic infrastructure for data and voice coverage, with the particular goal of increasing the reach of next-generation LTE connectivity.
According to forbes.com, the joint venture has been named China Communications Facilities Services Corporation Limited and will focus on the building of tower masts.
At present, each of the companies is required to handle its own construction projects but it is hoped the deal will help them to cut costs drastically.
In a statement, the firms said that the move will also help to “reduce duplication and redundant construction of telecommunications towers,” while encouraging “industry-wide investment return”.
China Mobile, which is the largest of the three parties, will take a 40 per cent stake in the newly established organisation, wsj.com reports. China Unicom holds a 30.1 per cent stake, with the remaining 29.9 per cent going to China Telecom.
Some analysts have suggested that the deal favours the two smaller companies as access to China Mobile’s assets will allow them to build their network coverage at a much faster pace.
While similar deals have been struck across European markets, this is the first of its kind to be agreed in China.
