A telecommunications infrastructure company jointly owned by the country’s three carriers said it will start to accepting private investments a year after its establishment on Friday, Xinhua News Agency reported.
China Mobile, China Unicom and China Telecom jointly announced on Friday the establishment of China Communications Facilities Services Corporation Ltd., which will focus on the construction, maintenance and operation of telecom towers and ancillary facilities.
The tower sharing venture will explore new ways to attract investment, select talent and expand business growth.
The joint venture has a registered capital of 10 billion yuan (US$1.6 billion). China Mobile, the country’s largest carrier by subscribers, will hold a 40 percent stake in the new firm with its 4 billion yuan contribution, China Unicom invested 3.01 billion yuan for a 30.1 percent stake, while China Telecom put in 2.99 billion yuan for a 29.9 percent stake, the report said.
China Mobile vice president Liu Aili will serve as chairman, while China Unicom vice president Tong Jilu will act as general manager.
“The establishment of the joint venture is the first step of a long journey,” China Mobile chairman Xi Guohua said. “There is much more work to do, including diversifying shareholder structure, introducing private capital and exploring market-oriented management to make the company more profitable.”
The move will allow the three carriers to rent services from the new firm instead of building the towers themselves. This will reduce redundant construction of telecom infrastructure and enhance investment efficiency.
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