China's three major mobile operators have reached an agreement with Beijing Mass Transit Railway Operation Corporation on mobile network construction efforts through mediation by the Beijing municipal government, according to an industry source. The three operators - China Mobile (NYSE: CHL; 0941.HK), China Telecom (NYSE: CHA; 0728.HK), and China Unicom (NYSE: CHU; 0762.HK; 600050.SH) - have agreed to pay an annual fee to the subway operator based on the number of base stations deployed throughout the subway system as an "entry fee." In order to avoid redundant construction, the Beijing government will require that telecommunications, radio and TV networks, and dedicated government networks be completed simultaneously with the construction of future subway lines. The new agreement will lead to a new resource-sharing model for the three telecom operators.
Editor's Note: For more information on this topic, please see "Beijing Subway, Telecom Operators Stuck on Pricing," MD 8/06/08 issue.
Keywords: China Telecom China Mobile China Unicom Beijing Municipal Government subway wireless network construction CHL 0728.HK 0762.HK 0941.HK 600050.SH CHA CHU Beijing Subway mobile network equipment