China Unicom and China Telecom are collaborating to build a 5G mobile network that can cut orders for businesses such as Huawei Technologies. This deal involves two of China’s largest telecom companies and is focused on cutting costs.
This comes as no surprised as China Telecom noted last month it was ready to join competitors to build a network for 5G. China has the world’s largest smartphone market and links to big companies in the industry, this could reduce infrastructure expenses that could put companies like Huawei in a difficult position when 5G services finally rollout.
The United States and South Korea have already begun 5G services as China finally enters the fray. China plans to offer 5G services in over 50 cities this year.
Designated regions will be divided with specific ratios of construction. China Unicom to China Telecom ratio of construction in Shijiazhuang, Qingdao, Beijing, Tianjin and Zhengzhou will be 6:4, whereas the ratio will be reverse between the two in 10 southern cities that include Shanghai.
China Unicom divulged in a statement that their dealings will “improve network investment return and asset operation efficiency, leading to win-win for both parties.”