China Mobile Limited (SEHK: 0941 and NYSE: CHL) has agreed to spend up to CNY 1 billion renting the 3G TD-SCDMA network from its parent China Mobile Communications Corporation (China Mobile Group) next year, announced the publicly-traded integrated telecom carrier on December 29.

Such move indicates that China Mobile is not likely to get the TD-SCDMA assets from its parent in the near future, because the TD-SCDMA business is still at its infancy, said Chen Yunhong, an analyst at Sinolink Securities. So far, China Mobile Group has injected all its assets except for the TD-SCDMA assets into the New York- and Hong Kong-listed company.

China Mobile is entitled to extend the lease in the future, according to an agreement reached by the two companies previously. China Mobile Group, which has poured CNY 35 billion in total into building the TD-SCDMA networks in the past two years, will make big investment in the network construction in the future.

Source:cnstock