China intends to boost its 4G mobile services by building thousands of new telecom towers throughout the country.

Three Chinese telecom operators announced they are pooling their resources to organize a joint infrastructure company that will focus on building and running the telecom towers.

Like Us on Facebook

The new joint venture, China Communications Facilities Services, also intends to rehabilitate state-controlled telecom companies by promoting competition.

State-owned China Mobile has the biggest market share, or 40 percent in the newly established company. China Unicom has 30.1 percent and China Telecom 29.9 percent.

China Communications Facilities Services will maximize its members' capital expenditures and increase investment returns.

Local telco analysts commented that China Unicom and China Telecom, being smaller than China Mobile, will be able to expand their network coverage rapidly since they'll share China Mobile's large telecommunication assets.

American multinational investment banking firm Goldman Sachs reported that China Mobile has 350,000 telecom towers while smaller rival players China Unicom and China Telecom have 150,000 towers and 100,000 towers respectively.

Multinational banking and financial services company Barclays believes the infrastructure advantage enjoyed by China Mobile could be eliminated by China Communications Facilities Services.

China Unicom and China Telecom will have the chance to upgrade their networks and increase the number of subscribers this year because of the joint venture.

TagsChina Mobile, china telecom, telecom towers, 4G, internet speed