China Mobile to Invest CNY 180 Bn in 4G Base Stations

Source: Economic Information Daily, ChinaScope Financial (Data)

+       China Mobile (CHL: NYSE; 0941: HKG) said that the company will start a full-scale 4G network development in 12H2. It is planning to purchase TD-LTE 4G equipment in 100 cities in China and build 180,000 base stations in 2013 to bring the total number of 4G stations to 200,000. Construction of the new base stations will cost approximately CNY 180 billion.

+       Apart from China Mobile, China Telecom (CHA: NYSE; 0728: HKG) and China Unicom (CHU: NYSE; 0762: HKG) will also accelerate their commercial use of 4G network. Both companies have announced that they will launch trial operations of 4G network and test its commercial applications in Shanghai and other cities.

+       The Ministry of Industry and Information Technology and Chinese Academy of Sciences estimated that CNY 500 billion worth of investments will be stimulated during the post-4G stage. After 4G service is ready for commercial use, 4G-related software development and devices manufacturing will also generate more than CNY 1 trillion in output value.

+       Related Data: Company Data

Among China’s three telecom operators, China Mobile (CHL: NYSE; 0941: HKG) is leading the 4G network development. In 2012 the company is expected to finish 20,000 4G base stations in nine different cities.

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