Chinese government yesterday ordered its three domestic telecom operators
to share and co-build infrastructure to avoid repeat construction in the wake of
industry restructuring.
The move would erode the competitive edge of China Mobile, the nation's
largest mobile operator, as its smaller rivals could access its wider network.
A circular jointly issued by the Ministry of Industry and Information
Technology (MIIT) and the State-owned Assets Supervision and Administration
Commission (SASAC) of the State Council required China Mobile, China Telecom and
China Unicom to promote the sharing and co-construction of infrastructure and
avoid repeat building in the industry overhaul and the new round of network
construction starting this month, according to the circular.
The existing telecom towers and lines must open to rivals. If conditions were
not ready for sharing, operators should expand and adjust their technologies,
said the circular.
If an operator planned to build telecom towers and lines, other operators
should inform it in 10 working days if they had such facilities to share or
plans to join the construction. They will be banned from building at the same
sites and routes within three years if they show no need for co-construction,
the two agencies said.
If conditions were appropriate, the operators should join together in
building new base stations and transmission lines. They also should open the
existing facilities to each other, the circular stated.
In the industry overhaul, China Telecom bought China Unicom's code-division
multiple access (CDMA) network and China Unicom merged with China Netcom. China
Mobile took control of China Tietong Telecommunications Corp.
The restructuring allowed China Telecom, China Unicom, and China Mobile to
all provide both fixed-line and wireless services.
The restructuring came as wireless operators enjoyed fast growth while
fixed-line operators saw a slump in numbers of subscribers since last year.
China Mobile has more than 400 million mobile phone users, more than triple
that of China Unicom. China Telecom has about 43 million wireless subscribers
after acquiring the CDMA assets from China Unicom.