Marbridge Daily

China Mobile, CBN Sign 5G Co-Construction and Sharing Agreement

China Mobile, 5/20/20

China Mobile (NYSE: CHL; 0941.HK), China's largest wireless operator with almost 947 mln mobile subscribers, announced today that parent company China Mobile Communications Group has entered into a 5G co-construction and sharing framework agreement ("5G Collaborative Framework Agreement") with China Broadcasting Network Corporation ("CBN").

PRINCIPLES OF COLLABORATION

China Mobile Communications Group ("Parent Company") currently holds a license for using the 2.6GHz and 4.9GHz frequency bands of the radio spectrum which can be used for 5G mobile telecommunications on a nationwide basis. CBN has already obtained an operating permit for 5G mobile service, and can legally use the 700MHz and 4.9GHz frequency bands of the radio spectrum to build 5G networks. The parties shall give full play to their respective advantages and, together with their respective affiliated companies (including but not limited to companies which each party to the agreement directly or indirectly has a controlling stake in or has control over), carry out 5G co-construction and sharing as well as content and platform collaboration. These shall be done in compliance with laws and regulations, in line with industry trends, under the consensus of "co-construction, sharing and win-win", and under the general principles of "equality and voluntariness, co-construction and sharing, collaboration for win-win, and complementary advantages".

CONTENT OF COLLABORATION

The parties shall jointly determine network construction plans, jointly invest in the construction of the 700MHz 5G wireless network at a ratio of 1:1, and jointly own and have the right to use the 700MHz 5G wireless network assets. China Mobile shall provide transmission carrier network services to CBN between 5G base stations in the 700MHz frequency band and CBN's connection points in local cities or provincial centers on a paid basis, and also open up and share its 5G network in the 2.6GHz frequency band on a paid basis. China Mobile shall undertake 700MHz wireless network operation and maintenance works, while CBN shall pay to China Mobile network operation and maintenance fees. Before the 5G network in the 700MHz frequency band becomes commercially available, CBN may share China Mobile's 2G/4G/5G networks on a paid basis to provide services to its customers. China Mobile shall provide international business transfer services to CBN on a paid basis. On the basis of maintaining their respective independent branding and operations, the parties shall jointly explore model innovations in areas such as products and operations, carry out in-depth collaboration in areas such as content and platforms, and pursue collaborative operations in areas such as channels and customer services.

DURATION OF COLLABORATION

The duration of collaboration between the parties shall be from the effective date of the 5G Collaborative Framework Agreement to December 31, 2031. If any party intends to renew the agreement prior to the expiry of the duration of collaboration, the parties shall negotiate the renewal of the 5G Collaborative Framework Agreement.

China Mobile believes that by entering into the 5G Collaborative Framework Agreement, the parties can leverage their advantages in areas such as 5G technologies and spectrum resources to intensively and efficiently achieve 5G network coverage. This will promote collaboration between the parties in terms of content, enabling them to jointly create a "Network + Content" ecosystem and achieve mutual benefit and win-win results. The Company will continue to implement its "5G+" plan, accelerate its upgrade of technologies, networks, applications, operations and ecosystems, and promote the integration of 5G into every industry and every walk of life, thereby supporting China Mobile's sustainable high-quality development.

The parties will negotiate and implement the specific proposals under the 5G Collaborative Framework Agreement based on market principles.

Keywords: television China Mobile wireless network construction 5G CHL 0941.HK China Broadcasting Network Corporation China Mobile Communications Group mobile network equipment national cable company