2nd UPDATE:Alcatel-Lucent Gets China Mobile Fiber, Mobile Deals
21 Luglio 2009 - 12:37PM
Dow Jones News
Franco-U.S. telecommunications equipment company Alcatel-Lucent
(ALU) Tuesday said it received two contracts from China Mobile Ltd.
(CHL) for the deployment of fiber and mobile networks in one of the
few markets still growing during the economic slump.
Alcatel-Lucent was selected as China Mobile's sole supplier for
the deployment of a fiber-to-the-home network in 10 Chinese cities,
for which China Mobile will deploy Alcatel-Lucent's gigabit passive
optical networking, or GPON, solution in the Chinese provinces of
Anhui and Guangdong to deliver ultra-high-speed services to
residential and business users.
In a separate statement Tuesday, Alcatel-Lucent said it has been
selected, together with Datang Mobile, to deploy China Mobile's
Time Division-Synchronous Code Division Multiple Access, or
TD-SCDMA, mobile networks in 11 Chinese provinces. TD-SCDMA is a
relatively new technology developed mainly in China.
Alcatel-Lucent and Datang Mobile, a unit of Datang Telecom
Technology Ltd. (600198.SH), have had a strategic partnership since
2004 to develop TD-SCDMA solutions in China. The consortium's new
win expands its overall market presence to 16 out of 31 provincial
markets in China, Alcatel-Lucent said in a statement.
Alcatel-Lucent didn't provide financial details of the deals but
a spokeswoman said the deals were part of the $1 billion framework
agreement signed with China Mobile in April.
The company in April reached deal with China Mobile, the world's
largest mobile operator with more than 400 million subscribers, to
supply second generation solutions and third generation equipment
based on the TD-SCDMA technology.
In April, it also received a contract to supply $700 million of
third-generation equipment based on a standard called CDMA, or Code
Division Multiple Access, to China Telecom Corp. Ltd (CHA).
Deals in China are key for Alcatel-Lucent as the Chinese market
is one where operators are investing massive amounts of money to
upgrade their networks and which has turned into a major sales
growth hope for telecom equipment vendors.
Western gear companies like Alcatel-Lucent, Nokia Siemens
Networks (NOK, SI) and LM Ericsson Telephone Co.(ERIC) have been
aiming for a slice of the investment in improving the networks as
demand in other parts of the world is hit by the recession and as
western operators focus on preserving cashflow.
An analyst at Cheuvreux said in April, after Alcatel-Lucent
announced the contract wins in China, the deals increase the
company's footprint in the growing region and help lay the path for
its future success with the inevitable leap to fourth generation
gear in 2010.
Company Web site: www.alcatel-lucent.com
-By Ruth Bender, Dow Jones Newswires; +33 1 40 17 17 40;
ruth.bender@dowjones.com