Sunday, April 26, 2009

Alcatel-Lucent Signs US$1.7 Billion Deals with China Mobile, China Telecom

Alcatel-Lucent announced two framework agreements valued US$1.7 billion in total with China Mobile and China Telecom.

Under an agreement valued approximately US$1 billion with China Mobile Alcatel-Lucent will provide its GSM/EDGE solutions, TD-SCDMA wireless networking equipment, optical, microwave and IP transmission offerings, IP service routers, application platforms and related services.

In a comparable agreement with China Telecom, valued at approximately US$700 million, Alcatel-Lucent will supply its 3G CDMA/EV-DO networking equipment, application platforms, optical and IP transmission platforms, IP service routers and network maintenance services to support the rollout of the company's 3G wireless broadband network.

China Mobile and China Telecom were granted 3G licenses in January 2009, for TD-SCDMA and CDMA/EV-DO technologies, respectively. The agreements were secured through Alcatel-Lucent Shanghai Bell, Alcatel-Lucent's Chinese flagship company.

The contracts were signed today in Washington D.C. in the presence of Li Yue, Vice President of China Mobile, Wu Andi, Chief Financial Officer of China Telecom and Mary Chan, President, Alcatel-Lucent's 4G/LTE end-to-end solutions and Dave Geary, President of Alcatel-Lucent's Wireline networks activities.

At the end of 2008, a consortium led by Alcatel-Lucent Shanghai Bell and Datang Mobile won the largest share in China Mobile's tender for the second phase of its TD-SCDMA mobile network trial.

Also in 2008, China Telecom selected Alcatel-Lucent Shanghai Bell for a US$230 million upgrade of its CDMA mobile network.

In addition, China Unicom, a leading fixed and mobile service provider in China, recently selected Alcatel-Lucent to deploy 3G W-CDMA networks in 14 Chinese provinces.

See also