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China Mobile awards TD-SCDMA contracts to four vendors

04 декабря 2008

China Mobile Ltd. Chairman and Chief Executive Wang Jianzhou said Wednesday the company has granted contracts to four telecommunications equipment vendors in a tender for its locally developed third-generation TD-SCDMA mobile network.

Wang told Dow Jones Newswires on the sidelines of a conference that China Mobile gave contracts to ZTE Corp., Huawei Technology Co., Datang Telecommunication Technology Co. and Telefon AB L.M. Ericsson.

The executive declined to provide details of the exact contracts awarded to each vendor, but confirmed that Ericsson got 5% of the tender.

Ericsson said last month it received a 5% share, or a 175 million Swedish kronor (US$21.8 million) stake, in the second round of telecom infrastructure spending from China Mobile, half of what it had expected.

The total second-phase award was valued at about SEK3.5 billion, Ericsson said at the time.

Officials at ZTE, Huawei and Datang weren't immediately reachable for comment.

Global telecom equipment providers face multiple headwinds going into 2009 as the build-out of third generation networks in developed nations is largely complete and network operators are cutting costs and having a hard time securing financing amid the global economic turmoil. But in
China, the world's largest mobile phone market by users, 3G networks have just begun to be built.

With the restructuring of its telecom sector complete and the issuance of 3G licenses believed to be imminent, Chinese carriers now have plans for big investments in new networks and that, in turn, has been a big boon for equipment makers.

In August, China Unicom said it plans to invest CNY100 billion ($14.67 billion) in 3G mobile services from next year through
2010. In July, China Telecom said its parent company plans to invest CNY80 billion ($11.74 billion) over the next three years in a code division multiple access network.

China Mobile's confirmation on tender comes after Alcatel-Lucent Tuesday it received a $230 million contract to upgrade China Telecommunications Corp.'s CDMA mobile phone network, ahead of an expected investment boom from the award of 3G licenses in

China Mobile is the world's biggest operator by subscribers.

News of the contracts sent shares in ZTE higher - they closed up 5.6% at HK$17.96. Shanghai-listed Datang shares ended up 2.6% at CNY5.21.

Источник: Total Telecom

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