Huawei, Ericsson win lion's share of China Unicom 3G deal

Huawei Technologies and Ericsson were the biggest winners in the tender for China Unicom's third-generation network construction, the South China Morning Post has reported.

China Unicom holds a licence to develop a 3G mobile network under WCDMA standards, while rival China Telecom received a CDMA2000 licence and industry leader China Mobile obtained approval to operate the nation's home-grown TD-SCDMA technology.

Huawei and Motorola, which outsourced manufacturing parts to Huawei, clinched a 30.6% share of the tender, the newspaper said, citing unnamed sources.

Ericsson and its partners won a 25.6% share, the report said.

ZTE won a 21.5% share of Unicom's tender.

Others to win contracts included Nokia Siemens Networks with an 11.1% share, and Alcatel Lucent secured a 10.2% share, the report said.

China Unicom expects to launch 3G mobile services in 55 cities in the first half of this year. The firm will expand its 3G coverage to 280 cities by the end of 2009.

The Ministry of Industry and Information Technology said this month China would invest 280 billion yuan ($41 billion) in 3G in 2009 and 2010.