24 September 2018

4G spectrum win to help China Mobile turn the tables on rivals

China Mobile (00941.HK) is said to have been the biggest winner in the frequency band allocation for TD-LTE 4G wireless communication in the mainland. As the country’s largest mobile carrier carves up more spectrum resources than its rivals China Telecom (00728.HK) and China Unicom (00762.HK) put together, the rich bandwidth capacity can help the firm catch up in the 3G segment and even turn the tables on the other two.

According to news portal Sina Finance, the Ministry of Industry and Information Technology has awarded China Mobile a total of 130 MHz of paired spectrum for TD-LTE networks while China Telecom and China Unicom get 40 MHz each. The move takes the nation a step closer to the launch of 4G services in the country.

China Mobile chief executive Li Yue {李躍} has said earlier that the 4G traffic load-bearing capacity is technically 10 times that of 3G. Thus, the forthcoming 4G era will help drive down both operating cost of the carrier as well as handset prices for service subscribers. Li believes 1000-yuan (US$164) handset models will become the mainstream in the 4G market from the second half of 2014.

And now coupled with the strength in spectrum resources, the upcoming 4G network of China Mobile will not only have better coverage and higher quality than those of China Telecom and China Unicom, it will also place the firm in a better position to undercut its rivals in vying for mobile-internet savvy subscribers.

– Contact the writer at [email protected]



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