China Mobile Limited (SEHK: 0941 and NYSE: CHL) is likely to spend about CNY 600 million renting the TD-SCDMA network from its parent China Mobile Communications Corporation (China Mobile Group) in 2009, predicted Goldman Sachs recently.

The mobile telecom operator is not very optimistic about the TD-SCDMA business, taking the one-year renting term into consideration, according to Goldman Sachs. Notably, China Telecom Corporation Ltd. (NYSE: CHA and SEHK: 0728) agreed to lease the CDMA network from its parent for three years.

Still, Goldman Sachs maintained its neutral rating on the No. One telecom carrier in China, whose average revenue per user (ARPU) is decreasing amid the fiercer competition.

China Mobile earlier unveiled its plan to rent the TD-SCDMA network for up to CNY 1 billion in 2009. The two parties are entitled to extend the lease in the future, according to an agreement reached by China Mobile and its parent previously.

Source:SinoCast Daily