Today it was announced that the world’s largest mobile operator, China Mobile Ltd. (ADR) (NYSE:CHL) has signed a memorandum of understanding with Sweden’s Ericsson for the research and development of various 5G initiatives. The companies will work closely together for at least five year in the development of the next generation of radio technology as well as initiatives related to The Internet of Things.
“As the next generation of mobile infrastructure, 5G is the key pillar for ICT development globally. We feel that closer and more active cooperation between Ericsson and China Mobile will foster tangible results in 5G by helping to drive standardization, research and development, and creating an integrated, cross-industry ecosystem,” China Mobile Research Institute’s Deputy Head Yuhong Huang said.
The companies hope to have their 5G technology ready for consumers by 2020, which coincides with other industry estimates for 5G technolgy. The stock is down 1.21% or $0.69 following the news, hitting $56.44 per share. Approximately 83,243 shares traded hands. CHL shares have declined 16.70% since May 22, 2015 and are currently downtrending. It has underperformed the S&P500 by 13.64%.
China Mobile Limited is an investment holding company. The company has a market cap of $234.59 billion. The Firm is engaged in providing mobile telecommunications and related services in 31 provinces, autonomous regions and directly-administered municipalities in Mainland China and Hong Kong Special Administrative Region through its subsidiaries. It has 13.75 P/E ratio. The Company’s business is divided into voice services and data services.