Mubasher: China Telecom and Unicom, two of China’s state telecoms giants, are teaming up to set up a fifth-generation (5G) mobile network.

Under the “co-build, co-share” framework agreement between China Telecom and a Unicom unit, districts in 15 cities will be established for the network construction, Reuters reported, citing separate statements from both companies.

The ratio of construction districts managed by Unicom to Telecom will be 6:4 in Beijing, Tianjin, Zhengzhou, Qingdao and Shijianzhuang, and it will be reversed in the 10 southern cities.

The cost-cutting venture came one month after China Telecom voiced its willingness to join competitors to build 5G network.

Tie-ups between major operators in China, the world’s biggest smartphone market, could reduce infrastructure spending.

Such move could probably weigh on orders place with vendors such as tech behemoth Huawei, as its business struggled amid a trade ban from the US, which blocked its access to essential American suppliers.