China Mobile and Radio and Television Announce Four Major Agreement Details on 5G Co-construction and Sharing

On January 26, China Mobile and China Broadcasting Corporation signed a "5G Strategy" cooperation agreement in Beijing, officially launching the joint construction and sharing of the 700MHz 5G network.

It is reported that since China Mobile and China Broadcasting Corporation signed the 5G co-construction and sharing cooperation framework agreement in May 2020, the two sides have fully communicated and conducted in-depth consultations on specific issues such as construction, maintenance, market and settlement, and reached a comprehensive consensus recently.

According to China Mobile’s announcement on the Hong Kong Stock Exchange, this “Cooperation Framework Agreement” involves four specific cooperation agreements, namely the “5G Network Co-construction and Sharing Cooperation Agreement”, the “5G Network Maintenance Cooperation Agreement”, the “Market Cooperation Agreement” and the “Network Usage Fee Settlement Agreement”.

The cooperation period under the four specific cooperation agreements is from the date of signing of the agreement to December 31, 2031, and is divided into the first phase cooperation period and the second phase cooperation period. The first phase cooperation period refers to the period from the date of signing of the agreement to December 31, 2021, and the second phase cooperation period refers to the period from January 1, 2022 to December 31, 2031.

Four major agreements stipulate the details of cooperation

According to the "5G Network Co-construction and Sharing Cooperation Agreement", the two parties jointly built the 700MHz wireless network, and China Mobile Communications shared the 2.6GHz network with China Radio and Television for a fee. The two parties jointly invested in the construction, expansion, and renovation of the 700MHz wireless network 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 the two parties share ownership in a 1:1 ratio.

Both parties have the right to fully use the 700MHz wireless network to provide services to their respective customers. As the project construction units of the 700MHz wireless network, both parties shall perform the basic construction procedures of the project in accordance with national laws and internal management requirements. China Mobile Communications provides China Radio and Television with a paid transmission and bearer network from 700MHz frequency 5G base stations to China Radio and Television's connection points in cities or provincial centers. The 700MHz and 2.6GHz wireless networks use the same shared technology solution.

According to the "5G Network Maintenance Cooperation Agreement", 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 the operation and maintenance fees for the 700MHz wireless network. China Mobile Communications is responsible for the maintenance of the 700MHz transmission bearer network used by China Radio and Television for a fee. The 700MHz wireless network is dual-connected to each other's core network, and both parties are responsible for the network maintenance of their own core networks. The network maintenance work of the 700MHz wireless network and the 700MHz transmission bearer network undertaken by China Mobile Communications includes fault handling, complaint handling, communication guarantee, cutover upgrade, wireless optimization, base station inspection, etc.

According to the Market Cooperation Agreement, both parties will cooperate on the principle of "equality, voluntariness, win-win cooperation, and complementary advantages" under the premise of abiding by national laws and relevant industry regulations, jointly explore model innovations in products and operations, adhere to high-quality development, and effectively maintain the sustainable development of the industry. The market cooperation between the two parties follows the principle of independence of brand and business operations.

In the first phase of the cooperation, China Radio and Television shared China Mobile's 2G/4G/5G network for a fee to provide services to China Radio and Television's customers. In the second phase of the cooperation, China Radio and Television shared China Mobile's 2.6GHz network for a fee to provide services to China Radio and Television's customers. After the large-scale commercial use of the 700MHz wireless network, China Radio and Television's new customers will no longer share the use of China Mobile's 2G/4G network in principle. In addition to the above-mentioned network sharing business cooperation, the two parties will also strengthen cooperation in product design, market operations, customer service, content, and the formulation of national and industry standards.

According to the "Network Usage Fee Settlement Agreement", based on the "Cooperation Framework Agreement", "5G Network Co-construction and Sharing Cooperation Agreement", "5G Network Maintenance Cooperation Agreement" and "Market Cooperation 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.

During the first phase of the cooperation, the 700MHz wireless network operation and maintenance fees and 700MHz transmission bearer network usage fees paid by China Radio and Television to China Mobile Communications will be calculated from the second month after the 700MHz frequency 5G base station is connected to the China Radio and Television core network or the transmission node designated by China Radio and Television, and will be charged according to the actual number of base stations. During the first phase of the cooperation, China Radio and Television will settle the 2G/4G/5G network usage fees with China Mobile Communications based on the network business volume of China Radio and Television customers using China Mobile Communications' 2G/4G/5G networks.

In the first five years of the second phase of cooperation, China Radio and Television will pay China Mobile Communications network usage fees at the price negotiated by both parties, including 700MHz wireless network operation and maintenance fees, 700MHz transmission bearer network usage fees, and 2.6GHz network usage fees. Based on the operation and cooperation in the first five years of the second phase of cooperation, the two parties will determine the settlement amount for the second five years of cooperation in a friendly manner in 2026. The settlement of cooperation expenses for customer service, international business, etc. that are beyond the scope of the agreement will be determined by separate negotiation between the two parties.

Win-win 5G era together

According to the agreement, the two parties will give full play to their respective advantages in 5G technology, frequency, content, etc., adhere to the sharing of 5G network resources, joint construction of 700MHz network, and joint creation of business ecosystem, jointly create a "network + content" ecosystem, and accelerate 5G network coverage in an efficient and intensive manner, promote 5G to integrate into various industries and serve the public, let 5G empower cable TV networks, assist the development of media integration, and continuously meet the spiritual and cultural needs of the people; strive to use 5G to serve the construction of a network power, digital China, and a smart society, further improve the digitalization and informatization level of the whole society, and better meet the people's new expectations for a better life.