The largest operator is finally set to explore the 700MHz spectrum and head towards full-coverage in China.
On January 26, 2021, China Mobile released news of a 5G partnership contract with the China Broadcast Network (CBN). According to the document, China Mobile plans to resell 5G capacity to CBN under an 11-year agreement from 2021 to 2031, and the two large operators will jointly build and share a national 5G network using CBN's 700MHz spectrum. The cost of construction will be shared equally. However, notably, China Mobile will provide network operations and management on a commercial basis and share its existing 2.6GHz band, which is a piece of bullish news for CBN’s investors.
CBN’s 700MHz 5G FDD band is a frequency band with high potential to provide wide coverage, fast speeds, strong penetration, and service continuity. In the past two years, CBN has been researching the commercial utilization of the 700 MHz 5G network. In March 2020, CBN’s 700MHz 2x30MHz became the world’s first global 5G standard for the large-bandwidth 5G low-band (Sub-1GHz) spectrum.
Stimulated by the news, China Mobile A stock price rose nearly 4% to CNY 47.90. The new release may become a turning point for the price level in the background of the delisting event.