China's telecom giants set up joint venture

China's three telecom carriers will jointly set up a firm engaging in communications facilities services, the country's largest operator China Mobile said Friday.

China Mobile, China Unicom and China Telecom entered into a promoters' agreement Friday to establish China Communications Facilities Services Corporation Limited, China Mobile said in a statement on the website of its Hong Kong-listed branch.

The new company will focus mainly on construction, maintenance and operation of telecommunications towers and ancillary facilities, as well as the provision of outsourced services of base station equipment maintenance, the statement said.

Total registered capital of the new company will be 10 billion yuan (1.63 billion U.S. dollars). China Mobile will hold 40 percent of shares, while China Unicom will have 30.1 percent and China Telecom 29.9 percent.

Setting up the new company can reduce redundant construction of telecom infrastructure, optimize investment efficiency and further promote sharing of telecom infrastructure, according to the statement.

The three parties are at a preliminary stage in considering potential injections of certain telecom assets into the new firm, China Mobile said.