China's telecom giants set up joint venture

China's three telecom carriers have jointly set up a firm engaging in communications facilities service in Beijing.

According to the agreement that China Mobile, China Unicom and China Telecom have signed, the total registered capital of the new company, China Communications Facilities Services Corporation Limited, is 10 billion yuan.

China Mobile holds 40 percent of shares, while China Unicom has 30.1 percent and China Telecom 29.9 percent.

Liu Aili is President of the new company.

"We estimate that the three telecom carriers need to build 200,000 telecom towers and base stations, as well as related accessory facilities in the next five years. With the company set up, they will need to build about 80,000 less, which will help reduce cost of 30 billion yuan, save land resources of 333 hectares. So the direct economic benefits will be quite obvious."

Liu also says that the three parties are at a preliminary stage in considering injections of private capital.

The new company will focus mainly on construction, maintenance and operation of telecommunications towers and ancillary facilities, as well as the provision of outsourced services of base station equipment maintenance.