China Unicom, China Mobile and China Telecom have signed an agreement to establish China Communications Facilities Services Corporation, a joint venture to share their mobile tower infrastructure. The three leading operators first said in May they were in talks on working together, and they have now formalised the venture.
China Communications Facilities Services will have a registered capital of CNY 10 billion. Its business scope includes construction, maintenance and operation of telecommunications towers; construction, maintenance and operation of ancillary facilities including base station control rooms, power supplies, air conditioning and interior distribution system; and provision of outsourcing services for base station equipment maintenance.
The shareholding structure of China Communications Facilities Services includes China Mobile with 4 billion shares and a stake of 40 percent, China Unicom with 3.01 billion shares (30.1 percent stake) and China Telecom with 2.99 billion shares (29.9 percent stake).
The operators expect the creation of China Communications Facilities Services to reduce duplication and redundant construction of telecommunications towers and related telecommunications infrastructure; increase industry-wide investment return; promote resources sharing of telecommunications infrastructure; ease the difficulty arising from site selection of telecommunications towers; enhance the company’s ability to grow organically through efficient use of resources; and further promote resources conservation and environmental protection.
The parties involved in the project are also considering the injection of some of their own telecommunications assets into China Communications Facilities Services.