China Mobile Limited has entered into a “5G Collaborative Framework Agreement” till 31st December 2031 to do 5G co-construction and sharing with China Broadcasting Network Corporation Limited (CBN).
China Mobile currently holds a nationwide 5G license and has 2.6 GHz and 4.9 GHz frequency bands of the radio spectrum whereas CBN has an operating permit for 5G services in 700 MHz and 4.9 GHz frequency bands. Both the operators are planning to make 5G successful in their respective bands so that the country has a leadership position in different 5G bands and plans to make consumers happy with their attractive offerings.
The collaboration agreement has two purposes. First, the focus is to carry out co-construction and sharing so that both the operators can have a lot of savings on the capex front. The parties shall jointly determine network construction plans, jointly invest in the construction of the 700 MHz 5G wireless network at a ratio of 1:1 and jointly own and have the right to use the 700 MHz 5G wireless network assets.
China Mobile shall also provide transmission carrier network services to CBN between 5G base stations in the 700 MHz 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 2.6 GHz frequency band on a paid basis so that CBN can optimize on China Mobile’s OFC network.
China Mobile shall also undertake 700 MHz wireless network operation and maintenance works while CBN shall pay to China Mobile network operation and maintenance fees. CBN will also share China Mobile’s 2G/4G/5G networks on a paid basis to provide services to its customers and China Mobile shall also provide international business transfer services to CBN on a paid basis.
Second, both the operators shall jointly explore model innovations in areas such as products and operations, carry out in depth collaboration in areas such as content and platforms collaboration and pursue operations in areas such as channels and customer services.
CBN will also provide content to China Mobile and inturn provide content to its 5G consumers. 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 for both the operators.