On the message side, 5G network will be built and shared with Telecom.
On the evening of September 9, the two companies announced that Unicom Operating Company, a wholly-owned subsidiary of China Unicom (Hong Kong), and China Telecom signed the 5G Network Co-construction and Sharing Framework Cooperation Agreement, using access network sharing, core network construction and 5G frequency resource sharing.
According to the cooperation agreement, Unicom will cooperate with China Telecom to build a 5G access network nationwide. The two sides will delimit the region and build zones. They will be responsible for the construction of 5G network in the delimited area, who will build, who will invest, who will maintain and who will bear the cost of network operation. 5G network co-construction and sharing adopt access network sharing mode, core network construction and 5G frequency resource sharing. The two sides jointly ensure that the network planning, construction, maintenance and service standards of 5G network joint construction and sharing area are unified, and the same level of service is guaranteed. The network co-construction and sharing cooperation between the two sides and the third party can not unduly damage the interests of the other party. The ownership of both users remains unchanged, and the brand and business operations remain independent.
In the area of network construction, both sides will build 5G network in 15 urban districts. Taking the total scale of 4G base stations (including room division) of both sides as the main reference, Beijing, Tianjin, Zhengzhou, Qingdao and Shijiazhuang are five cities in the north, and the construction area ratio of Unicom Operating Company and China Telecom is 6:4; Shanghai, Chongqing, Guangzhou, Shenzhen, Hangzhou, Nanjing, Suzhou, Changsha, Wuhan and Chengdu are 10 cities in the south. The ratio of Tong Operating Company to China Telecom Construction Area is 4:6. Unicom will independently build nine cities in Guangdong Province, five cities in Zhejiang Province and eight northern provinces (Hebei, Henan, Heilongjiang, Jilin, Liaoning, Inner Mongolia, Shandong and Shanxi) outside the aforementioned areas; China Telecom will independently build 10 cities in Guangdong Province, five cities in Zhejiang Province and one of the aforementioned areas. Outside 17 southern provinces. The two sides will adhere to the principle of maximizing the benefits of Co-construction and sharing, conducive to sustainable cooperation, not using settlement as a means of profit, uphold fair and fair market-oriented settlement, and formulate reasonable and streamlined settlement methods.
China Unicom believes that the co-construction and sharing of 5G networks with China Telecom, especially the continuous 5G frequency sharing between the two sides, will help to reduce the cost of 5G network construction and operation and maintenance, effectively achieve 5G network coverage, rapidly form 5G service capabilities, enhance the market competitiveness of 5G networks and services, and enhance network efficiency and asset operation efficiency. Rate, achieve mutual benefit and win-win situation.
In the first half of this year, China Unicoms main business revenue declined by 1.1% to 132.96 billion yuan, and its net profit increased by 16.8% to 3.02 billion yuan. In the first half of 2019, China Telecoms revenue fell by 132% to 1904.9 billion yuan, and its net profit rose by 25% to 1391 billion yuan.
According to the Daily Economic News, both sides are facing greater revenue pressures, and 5G investment is much larger than 4G. Wang Xiaochu also indicated at the mid-term performance conference mentioned above that the construction and sharing of 5G network can save about 200 billion yuan of capital expenditure per operator.