China Telecom and China Unicom start investment in 4G construction by the end of this year

According to people familiar with the matter, as the State Council executive meeting determined to issue 4G licenses during the year, China Telecom and China Unicom will accelerate their respective 4G network construction processes and start investment in 4G construction by the end of this year. Some insiders predict that after the issuance of 4G licenses, it will greatly promote the 4G construction and commercialization of the three major operators. Within the next three years, the cumulative investment of the three major operators in 4G construction and operation will be expected to exceed 300 billion .

A few days ago, the State Council held an executive meeting and stated for the first time that it would issue 4G licenses this year. Most industry insiders believe that according to the State Council ’s position, the Ministry of Industry and Information Technology may issue 4G licenses to the three major operators around October this year at the earliest, and will issue them by the end of the year at the latest. Some market participants also predict that if the economic growth rate in the second half of the year is lower than expected, the issuance of 4G licenses may be earlier.

The Ministry of Industry and Information Technology attaches great importance to the issue of 4G license issuance, and is currently understanding the situation of various operators to actively promote the progress of related work. According to a person from the Ministry of Industry and Information Technology, the Ministry of Industry and Information Technology may discuss the issuance of 4G licenses at a mid-year work conference held recently and determine the specific date of issuance.

In this context, China Telecom and China Unicom, which were not active in the construction of 4G networks before, have seen significant changes in their recent attitudes. In addition to relevant executives who have repeatedly stated that they will actively promote the construction and commercialization of 4G networks, informed sources revealed that China Telecom and China Unicom will officially start their respective 4G construction investments by the end of this year.

It is reported that China Telecom has started the construction of 4G trial network, and the scale and speed of the construction have exceeded the outside expectations. According to the above-mentioned sources, China Telecom has expanded the 4G network pilot from the original 4 provinces to 31 provinces, and recently opened the 4G trial network in Nanjing recently, which means that China Telecom has officially launched a nationwide 4G network construction. At present, China Telecom has started the 4G bidding work, which requires the core network to complete the bidding by the end of August this year, and the national equipment will arrive at the end of September. It is reported that the products of major telecom equipment vendors such as Huawei and ZTE have been delivered to the construction site of 4G trial network in some provinces and cities of China Telecom.

China Unicom, which had previously been apathetic about 4G, is also actively promoting its own 4G construction plan. According to an insider of China Unicom, China Unicom has launched a trial network construction plan, and also internally put forward requirements to ensure that in the 4G era, China Unicom's 4G network maintains a leading edge in the three major operators in terms of signal and coverage. At this stage, China Unicom plans to invest 10 billion yuan annually to construct 31,000 4G base stations, and will gradually increase construction investment in the future.

China Mobile has always been active in 4G construction. In addition to the clear 4G construction plan announced at the beginning of this year, the shortlist for the second round of bidding has just been announced recently. The first round of business quotation for this bidding ended on July 15. According to China Mobile's previous 4G construction plan, China Mobile will build 180,000 4G base stations in 2013. According to industry estimates, the total investment is expected to exceed 80 billion yuan.

"Once the 4G license is issued, the three major operators will reproduce the situation of catching up with each other in network construction, and then there will be a peak period of network construction investment again." The above-mentioned insider said. Most industry insiders estimate that although the three major operators have different plans for 4G network construction, compared with the scale of base station construction in the 3G era, the number of 4G base station constructions per operator is expected to remain at around 200,000 in the next three years. The total number of commercial 4G base stations will reach 600,000. Based on the construction cost of 500,000 yuan per base station, the direct investment of the three major operators in the construction of base stations is expected to reach 300 billion yuan.


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