China Unicom plans 40b yuan push into Henan
China United Network Communications Group, the parent of Hong Kong-listed China Unicom (Hong Kong), will invest 40 billion yuan (HK$45.4 billion) in Henan province in the next five years on its 3G mobile network and fixed-line broadband transmission infrastructure, the company said yesterday.
The investment is part of a strategic alliance China Unicom Group has reached with Henan to enhance the province's information technology infrastructure.
The company is spending 3 billion yuan this year building 7,000 WCDMA 3G base stations across the province. About 1,863 base stations have been undergoing trials since last month.
The company will also increase its broadband internet connectivity bandwidth and optimise the network infrastructure in Henan.
Analysts believe the massive investments made by telecommunications operators on the mainland will directly benefit equipment vendors such as ZTE Corp.
Unicom chairman Chang Xiaobing said such investment plans could help the local economy face the challenges of the tough environment.
China Mobile Communications Corp, the parent of Hong Kong-listed China Mobile, and China Telecommunications Corp, the parent of China Telecom Corp, signed similar strategic alliances earlier this year.
China Mobile Group will invest 45 billion yuan in Henan and China Telecom 20 billion yuan in the next five years, mainly on the roll-out of the 3G network.
Following government policy, the nation's Big Three telecommunications operators are aggressively investing in the provinces to push the new 3G mobile network and broadband infrastructure.
China Mobile has committed to invest 193 billion yuan over five years in nine provinces including in Guangxi, Xinjiang, Hubei, Hunan and Zhejiang.
China Mobile's investment is mainly to be spent on mobile network coverage using the mainland's own TD-SCDMA technology.
It will also go towards the development of mobile value-added services. The company will invest at least 50 million yuan in Zhejiang to develop mobile reading research and development centres.
China Telecommunications, which operates the nation's biggest fixed-line network and CDMA mobile network, will invest 173.2 billion yuan in 11 provinces and cities.
The group will invest 26 billion yuan in Shanghai to upgrade its fixed-line broadband network, which will have download speeds of 20 megabits per second.
Central China Securities expects the aggressive 3G network roll-out plans will benefit mainland telecommunications equipment vendors in the second half this year.
Connected
China Unicom Group, one of the nation's three telecommunications operators, will invest 40b yuan in Henan province in the next five years on a 3G mobile network and fixed-line broadband coverage
The company has committed 127b yuan this year to invest in six provinces and municipalities
Henan 40 billion yuan
Guangdong 35 billion yuan
Sichuan 17 billion yuan
Hunan 15 billion yuan
Zhejiang 20 billion yuan
