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China Tower is Racing to Fulfill the Chinese 5G Network's Rising Demand

Under the shock of COVID-19, China’s government is gradually transferring its focus to digitalization and new infrastructure projects. Within these new policies, 5G construction has also become more and more critical. For instance, 0.7 million 5G base stations are expected to be installed in 2020. To support the government’s new policies, China Tower is trying its best to speed up 5G construction. To be precise, it accepted the assignment to set up 0.59 million 5G base stations and had completed 0.37 million by the end of June. Moreover, the firm aims to lower the construction cost by promoting a sharing mechanism. Most of China Tower’s operating income came from three operators – China Telecom, China Mobile and China Unicom. They generated CNY 74.39 billion in operating incomes for it in 2019 and occupied 97.33% of its total income. Additionally, 5G construction will further increase operators’ needs for it and might raise its operating income to CNY 81 billion by 2020.

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