China Mobile and China Broadcasting Corporation initiate strategic cooperation to jointly build and share 700MHz 5G network

On January 27, China Mobile and China Broadcasting Corporation signed a "5G Strategy" cooperation agreement, officially launching the joint construction and sharing of the 700MHz 5G network.

It is reported that this "Cooperation Framework Agreement" involves four specific cooperation agreements: "5G Network Co-construction and Sharing Cooperation Agreement", "5G Network Maintenance Cooperation Agreement", "Market Cooperation Agreement" and "Network Usage Fee Settlement Agreement".

The 5G Network Co-construction and Sharing Cooperation Agreement states that the construction, expansion, and renovation of the 700MHz wireless network will be jointly invested by both parties in a 1:1 ratio. The 700MHz wireless network (including but not limited to base stations, antennas, and necessary wireless supporting equipment) is an indivisible whole asset and is owned by both parties in a 1:1 ratio.

The "5G Network Maintenance Cooperation Agreement" mentioned that both parties have equal network management rights over the 700MHz wireless network. China Mobile Communications is responsible for the operation and maintenance of the 700MHz wireless network, and China Radio and Television pays China Mobile Communications for the operation and maintenance of the 700MHz wireless network. The "Market Cooperation Agreement" mentioned that both parties, under the premise of complying with national laws and relevant industry regulations, will cooperate based on the principles of "equality, voluntariness, win-win cooperation, and complementary advantages", jointly explore model innovations in products, operations, etc., adhere to high-quality development, and effectively maintain the sustainable development of the industry.

In addition, in terms of the "Network Usage Fee Settlement Agreement", based on the above agreement, China Radio and Television pays network usage fees to China Mobile Communications, including 700MHz wireless network operation and maintenance fees, 700MHz transmission bearer network usage fees, and 2G/4G/5G network usage fees.

For operators, network co-construction and sharing can save a lot of capital expenditure, which has been verified in the previous cooperation between China Unicom and China Telecom.