Telco - Supplemental agreement between China Mobile and China Broadcasting Network

■   China Mobile [0941.HK] announced that last Friday that China Mobile Communications Group and its 31 provincial subsidiaries had entered into a “Supplemental Agreement” with China Broadcasting Network (CBN).

■   The roll-out of the 700MHz 5G network is expected to be smoother, as China Mobile Communications Group will bear all the costs.

■   This may affect negotiations between China Mobile, and China Telecom/China Unicom. We remain constructive on equipment suppliers, including ZTE [763.HK] and YOFC [6869.HK].