News Alert: China Unicom (762 HK) has received approval from MIIT to refarm 900MHz frequency for 5G network
- China Unicom has received approval from MIIT to refarm 900MHz frequency for 5G network
- The company can deploy 5G network in rural areas with lower investment
- The news is positive to China Unicom
- We current rate BUY on the counter with TP of HK$6.8
What’s New
– China Unicom (762 HK) announced that MIIT has approved the refarming of the 900MHz frequency resources for 5G systems (previously used for 2/3/4G systems), according to HKEx yesterday after market close.
– This marks the first MIIT approval regarding low-band 5G spectrum development in China.
– The 900MHz frequency band has features including less transmission loss, wide coverage, strong penetration and low network deployment cost.
– This allows China Unicom to expand its 5G coverage into rural and remote areas with less investment.
– Earlier this year, China Mobile and CBN also announced a strategic cooperation agreement to construct and share a 700MHz 5G network, another 5G low-band network development in China.
Our View:
– The news is positive to China Unicom.
– The company can deploy 5G coverage faster and at a lower cost.
– We currently rate BUY on the counter with TP of HK$6.8.
