Sub-GHz spectrum maximizes the cost-effectiveness of covering large, sparsely populated areas with wireless connectivity because of the long ranges of its signals. But even sub-GHz economics can be inadequate to make a strong profit case for operators to deliver universal and high quality rural coverage – so shared networks, for so long anathema to many MNOs (especially if mandated by a government), are becoming more popular.
The UK is pushing ahead, at least haltingly, with its Shared Rural Network, and now China is exploring how to open up more of the 700 MHz band for a rural 5G network, probably shared between multiple operators.
A paper, issued jointly by the Chinese State Council and Communist Party Central Committee, argues for the use of 700 MHz as a relatively cost-effective way to accelerate 5G build-out in rural China and help narrow the digital divide.
Currently, China’s 700 MHz 5G spectrum is owned exclusively by pay-TV operator China Broadband Network (CBN), which was granted its first mobile licence in 2019. However, it recently agreed a network roll-out and sharing partnership with China Mobile, and this could help the market leader to extend its 5G deployment which, though the world’s largest, has not yet reached many rural and remote areas.
This deal leaves the other two MNOs, China Telecom and China Unicom, without sub-GHz 5G spectrum. A Unicom executive, Zhang Yunyong, responded to the paper by calling for the 700 MHz band to be opened up for all the operators. He argues for
construction of a nationwide 700 MHz rural network to be shared between all four MNOs, and claims that would save RMB190bn ($29.3bn) in construction costs. Unicom already have an extensive deal to share active and passive 5G infrastructure to help reduce costs and accelerate roll-out.