Chinese mobile operators are considering working together to build 5G networks in order to limit the costs, the Nikkei Asian Review reports. The second- and third-ranked carriers, China Telecom and China Unicom area already close to an agreement.
China Telecom Chairman and CEO Ke Ruiwen said that his company is in "deep consideration" to jointly build a 5G network with China Unicom. He confirmed that top management on both sides have already reached a "high level of consensus" on the matter and "substantial progress" has been made toward a final deal.
The idea was hinted at by China Unicom Chairman and CEO Wang Xiaochu earlier. During the company's first-half earnings briefing, Wang floated the idea of a "co-built, co-shared" 5G infrastructure. Wang left the door open to cooperating with China Mobile and China Broadcasting Network, which were granted 5G licenses in June, but said China Unicom was "mutually complementary" with China Telecom, noting their strengths in different regions of the country.China Telecom's Ke also mentioned these advantages at the operator's first-half results presentation.
Market leader China Mobile has pledged to allocate CNY 24 billion to 5G this year, above the CNY 17 billion suggested in March. Chairman Yang Jie said that its total capital expenditure for 2019 will be under CNY 166 billion, below last year's CNY 167.1 billion. Despite the government's push for swift deployment of a network, Yang said "the peak period of 5G investment will be between 2020 and 2022."
