Asia Express - East Asian ICT
China Mobile, Shanghai Government Ink Three-year Agreement
May 15, 2009
Following China Telecom's announcement that it would invest in IT network deployment in Shanghai during 2009 and 2011, China Mobile recently also announced that the company has clinched a three-year cooperation agreement with the Shanghai Municipal Government in anticipation of the advent of the 2010 World Expo Shanghai, the Xinhua News reported on May 11.

Pursuant to the agreement, China Mobile will invest 31 billion RMB (US$4.5 billion; US$1 = 6.8 RMB) during 2009-2011 into IT network development in Shanghai, with an aim to boost the traffic volume by 30% by the end of 2011. Of total investment, three billion RMB (US$439.4 million) will be assigned for TD-SCDMA (Time Division-Synchronous Code Division Multiple Access) network construction and one billion RMB (US$146.5 million) will be spent for IT infrastructure deployment in the said city. By year-end 2011, China Mobile will help strengthen Shanghai's network capability to 25 million lines, and increase the length of the optical fiber cable network to 50,000km, up from 20,000km in 2009, according to the same source.