[ET Net News Agency, 1 February 2018] China Unicom (00762) said its wholly-owned
subsidiary China United Network Communications Corporation Limited (CUCL) and China Tower
Corporation Limited agreed on certain supplementary provisions based on the original
agreement in connection with the commercial pricing of the lease of telecommunications
towers and related assets from the tower company through CUCL.
The pricing of tower products shall be adjusted, including: cost margin shall be
adjusted from 15% to 10%; the base price co-tenancy discounts shall be increased from 20%
to 30% if two companies share the use and from 30% to 40% if three companies share the
use; the additional 5% discount enjoyed by anchor tenant will remain unchanged; the
regional adjustment coefficients on standard construction costs for certain provinces on
new tower products and the discount rate on acquired towers shall be adjusted; the
existing sharing parties concessionary policy shall be extended to 31 December 2019 and
both parties shall negotiate on the pricing terms prior to its expiry.
The adjusted product catalogue and pricing shall be effective from 1 January 2018.
Respective subordinate companies of both parties at the provincial level or city level
shall execute product confirmation orders or bulk lease forms to confirm.
The agreement tenure shall be five years, effective from 1 January 2018 to 31 December
2022. Prior to expiry, both parties shall negotiate with each other for the pricing
thereafter. (HL)