New | China Telecom sees tower-sharing venture accelerating 4G network expansion
Injection of one million towers into three-way network venture to spur growth in the second half despite 4pc loss in the first six months
China Telecom, which posted a net loss in the first six months of this year, sees brighter prospects in the second half as China's telecommunications industry's infrastructure-sharing joint venture gets fully under way.
Nearly a million network towers are forecast to be injected into this venture to spur growth for the country's three major network operators, despite concerns about economic slowdown on the mainland.
"Tower sharing effectively alleviates the shortage of prime sites, which would drive fast and effective 4G services roll-out," China Telecom chairman and chief executive Wang Xiaochu said on Wednesday. "It will enhance the long-term value for the company and the whole industry."
In July last year, China Mobile, China Unicom and China Telecom formed a joint venture called China Communications Facilities Services Corp - renamed China Tower last September - to handle the construction, maintenance and operation of telecommunications network towers and auxiliary infrastructure across the country.
The central government has not made any formal announcement on how this asset-infusion plan would be accomplished and the valuation of each tower put into the venture.
Bernstein senior analyst Chris Lane said he expected more details about the joint venture to be announced in October.
Wang, however, disclosed oln Wednesday that infrastructure-sharing has started.
