Sci-Tech Information: China"s Biggest Telecom Operators to Set Up Joint Ventrue
Sci-tech information: China's biggest telecom operators to set up joint ventrue
Three telecom operators are researching the possibility of setting up a telecom infrastructure company that would be responsible for construction of base stations for mobile networks.
The Ministry of Industry and Information Technology said on Wednesday night that the three telecom carriers - China Mobile, China Unicom and China Telecom - are in discussions to build a collective company.
The ministry's announcement came in response to a report from Caijing.com that the carriers are going to lease network resources from a new company.
While the ministry said the new company would lead and coordinate construction of telecommunications infrastructure, it did not reveal whether the company would shoulder the responsibility of running and maintaining the network.
"Establishing the company is good for saving energy and environmental protection. Also, it will lower the construction cost of the telecom industry. Thus it ultimately benefits telecom service users," the ministry said.
China Mobile issued a statement on Wednesday night admitting involvement in the new company's founding. "Related works are underway," it said.
China Unicom replied that all parties are still discussing the issue and have yet to reach an agreement.
"The planned JV aims to enhance the sharing of resources for the development of telecommunications infrastructure and lower operating costs and the costs for developing telecommunications networks," market leader China Mobile said in its filing, noted Total Telecom.
Such a JV would help the operators cut network deployment costs, especially as China Unicom and China Telecom work to catch up to China Mobile's lead in deploying TD-LTE services. China Mobile has said it wants to deploy 500,000 TD-LTE base stations by the end of 2014. The pressure is on the operators to expand mobile broadband coverage. Under China's Broadband China strategy, the government wants carriers to provide mobile broadband coverage to 32.5 percent of the more than 1.3 billion people in the country by the end of 2015.
The JV seems to have the strong support of the government, Bloomberg noted, as the Ministry of Industry and Information Technology said on its website that it would promote environmental protection, cut costs and benefit customers.
Such an effort by China's three largest wireless operators could serve to cut into the revenues of network equipment vendors that had hoped to sell to each operator individually.
China Telecom, the smallest mobile network operator, said the purpose of launching a new infrastructure company is to promote resource sharing, as well as lower construction and operating costs.
China is going to embrace a new wave of base station construction because of the commercial rollout of the 4G network.
Large construction projects are very likely to encounter severe problems of overlapping investment, misuse of land resources and unwanted energy consumption. China Mobile has vowed to build or update 500,000 base stations for its 4G network by the end of the year, while the other two carriers are very likely to catch up.
"The average cost of one base station is about 1 million yuan ($159,000) and it takes even larger amounts of money for maintenance," said Xu Yong, a Beijing-based industry insider.
If three telecom operators collectively shut 100,000 base stations, they will save more than 20 billion yuan, he added.
Meanwhile, it is getting harder for operators to find new sites for building 4G base stations.
"A new joint venture will help get the work done and step up the pace of China's 4G network development," he said.
Nigeria corporate governance code for telecom operators
The Nigerian Communications Commission (NCC) has released the Code of Corporate Governance for the Nigerian Telecommunications Industry.In the code published on the NCC's website Friday, the commission's Executive Vice Chairman, Dr Eugene Juwah, said that the provisions of the code was based on international best practices.
Juwah explained that the code would foster good corporate governance practices in the Nigerian telecommunications industry and that enthronement of good corporate governance standards and practices in organisations encourage corporate success and business sustainability.
‚¬"The need to develop a sector specific Corporate Governance Code for the Nigerian Telecommunication Industry is necessary to address the peculiarities of the sector that are not typically dealt with under broadly-aimed codes‚¬ he added.
According to him, this is more so given that the telecommunications sector, though, dominated by privately-held companies, is of strategic importance to the economy at a macro level.
Juwah said that the code was a voluntary code of leading practices aimed at regulating corporate behaviour and practices of companies within the industry and that it should be reviewed on a yearly basis, to allow for continuous improvements where applicable.
Telecom operators prepare wishlist for next government
The telecom industry has readied its wish list for the next communications minister as the parliamentary elections move into high gear, with speedy introduction of spectrum trading and sharing policies and favourable merger and acquisition rules topping the demands. The list of demands also includes improved availability of airwaves, lower spectrum usage fees and other levies as well as policies that give a fillip to local manufacturing of telecom equipment. The industry wants the annu..
For more sci-tech information, goes to: http://en.twwtn.com/Information/
Three telecom operators are researching the possibility of setting up a telecom infrastructure company that would be responsible for construction of base stations for mobile networks.
The Ministry of Industry and Information Technology said on Wednesday night that the three telecom carriers - China Mobile, China Unicom and China Telecom - are in discussions to build a collective company.
The ministry's announcement came in response to a report from Caijing.com that the carriers are going to lease network resources from a new company.
While the ministry said the new company would lead and coordinate construction of telecommunications infrastructure, it did not reveal whether the company would shoulder the responsibility of running and maintaining the network.
"Establishing the company is good for saving energy and environmental protection. Also, it will lower the construction cost of the telecom industry. Thus it ultimately benefits telecom service users," the ministry said.
China Mobile issued a statement on Wednesday night admitting involvement in the new company's founding. "Related works are underway," it said.
China Unicom replied that all parties are still discussing the issue and have yet to reach an agreement.
"The planned JV aims to enhance the sharing of resources for the development of telecommunications infrastructure and lower operating costs and the costs for developing telecommunications networks," market leader China Mobile said in its filing, noted Total Telecom.
Such a JV would help the operators cut network deployment costs, especially as China Unicom and China Telecom work to catch up to China Mobile's lead in deploying TD-LTE services. China Mobile has said it wants to deploy 500,000 TD-LTE base stations by the end of 2014. The pressure is on the operators to expand mobile broadband coverage. Under China's Broadband China strategy, the government wants carriers to provide mobile broadband coverage to 32.5 percent of the more than 1.3 billion people in the country by the end of 2015.
The JV seems to have the strong support of the government, Bloomberg noted, as the Ministry of Industry and Information Technology said on its website that it would promote environmental protection, cut costs and benefit customers.
Such an effort by China's three largest wireless operators could serve to cut into the revenues of network equipment vendors that had hoped to sell to each operator individually.
China Telecom, the smallest mobile network operator, said the purpose of launching a new infrastructure company is to promote resource sharing, as well as lower construction and operating costs.
China is going to embrace a new wave of base station construction because of the commercial rollout of the 4G network.
Large construction projects are very likely to encounter severe problems of overlapping investment, misuse of land resources and unwanted energy consumption. China Mobile has vowed to build or update 500,000 base stations for its 4G network by the end of the year, while the other two carriers are very likely to catch up.
"The average cost of one base station is about 1 million yuan ($159,000) and it takes even larger amounts of money for maintenance," said Xu Yong, a Beijing-based industry insider.
If three telecom operators collectively shut 100,000 base stations, they will save more than 20 billion yuan, he added.
Meanwhile, it is getting harder for operators to find new sites for building 4G base stations.
"A new joint venture will help get the work done and step up the pace of China's 4G network development," he said.
Nigeria corporate governance code for telecom operators
The Nigerian Communications Commission (NCC) has released the Code of Corporate Governance for the Nigerian Telecommunications Industry.In the code published on the NCC's website Friday, the commission's Executive Vice Chairman, Dr Eugene Juwah, said that the provisions of the code was based on international best practices.
Juwah explained that the code would foster good corporate governance practices in the Nigerian telecommunications industry and that enthronement of good corporate governance standards and practices in organisations encourage corporate success and business sustainability.
‚¬"The need to develop a sector specific Corporate Governance Code for the Nigerian Telecommunication Industry is necessary to address the peculiarities of the sector that are not typically dealt with under broadly-aimed codes‚¬ he added.
According to him, this is more so given that the telecommunications sector, though, dominated by privately-held companies, is of strategic importance to the economy at a macro level.
Juwah said that the code was a voluntary code of leading practices aimed at regulating corporate behaviour and practices of companies within the industry and that it should be reviewed on a yearly basis, to allow for continuous improvements where applicable.
Telecom operators prepare wishlist for next government
The telecom industry has readied its wish list for the next communications minister as the parliamentary elections move into high gear, with speedy introduction of spectrum trading and sharing policies and favourable merger and acquisition rules topping the demands. The list of demands also includes improved availability of airwaves, lower spectrum usage fees and other levies as well as policies that give a fillip to local manufacturing of telecom equipment. The industry wants the annu..
For more sci-tech information, goes to: http://en.twwtn.com/Information/
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