China to Set Up Cross-Border Telecom Infrastructure

A Chinese company is prepping for cross-border telecom infrastructure. China Telecommunications Corporation (CTC) is setting up resources for wrapping up cross-border telecom initiatives.

This includes China-Pakistan information corridor, the China-Laos-Thailand, and the China-Bangladesh-Myanmar-India projects. CEO Deng Xiaofeng of CTC’s international subsidiary, China Telecom Global Ltd said on Tuesday that:

Cross-border telecommunication infrastructure is one of the first steps for international cooperation. Our experience in deploying one of the world’s largest information networks in China can help narrow the digital gap.

$1 Billion Investment

China Telecom Global will invest north of $1 billion within the next 3 to 5 years to enhance its presence in the One Belt One Road (OBOR) project including Pakistan. Mr. Deng added that they will raise money through private investors and state-owned financing institutions for building internet data centers, land cables and other infrastructure in Europe, South East Asia, and other regions.

He said that they are also looking to invest in foreign telecom companies (like Telenor for example) to help developing countries accelerate 4G development.

China Telecom (as of 2016) boasts over 4,700 overseas employees with offices and branch offices in more than 30 different countries and regions. Most of these countries lie on the OBOR. They have also established 13 internet data centers in 6 of these countries.

Long Way to Go

Data from the International Telecommunication Union shows that Asia-Pacific region scored 4.58 in informatization level in 2016. This isn’t something to be proud of as this is below the global average of 4.98.

Telecom analyst and Founder of the telecom website cctime.com Xiang Ligang says that China Telecom is one of the first telecom carriers in China to go global. The push for going global started back in the 90’s. He added that this would help other local telecom equipment manufacturers head out into the international markets.

China Telecom is expecting this investment will improve telecom services along the OBOR which will create a market worth around $20 billion in the next 5 years.