The tower company formed by China’s three mobile operators is looking to raise private capital and publicly list the business, according to Shanghai Securities News.

China Communications Facilities Services Corporation was established earlier this month by China’s three leading operators to construct, maintain and operate their cellular infrastructure, as they face the massive rollout of 4G networks across the country.

China Mobile will hold 40 per cent of the venture while rivals China Unicom and China Telecom will each have 30 per cent stakes.

The timeframe for listing or introduction of private capital is not clear but the report suggested that having just the three operators as shareholders is a temporary arrangement. The report cited an official from the Ministry of Industry and Information Technology.

According to Reuters, Chinese Premier Li Keqiang said in the March session of China’s parliament that state-controlled telecoms firms would be targeted to receive non-state capital to increase privatisation.

The Chinese operators announced their intention to set up the venture at the end of April. According to a filing, the company was set up with a share capital of CNY10 billion ($1.6 billion).

China Mobile said the joint venture will reduce duplication and unnecessary construction of cellular towers, so improving investment efficiency. The country’s largest operator said the move would also enable it to better utilise existing assets.

Discussions are at a preliminary stage in terms of which assets will be included in the deal.

The creation of the tower company is in contrast to some operators that have moved to sell their cellular infrastructure, often to improve their balance sheets.

Bharti Airtel recently sold the first chunk of its African towers unit. And Telecom Italia plans to offload its Brazilian infrastructure. Both moves are financially motivated.