Alcatel-Lucent won two contracts from China Mobile and China Telecom totalling $1.7 billion to provide network upgrades, infrastructure and services, completing a trifecta of 3G contract wins in China for the company.
The deal with China Mobile is worth around $1 billion and the one with China Telecom is valued at $700 million, according to Alcatel-Lucent. The China Mobile deal involves deploying networking equipment using China's homegrown standard, TD-SCDMA, as well as optical, microwave and IP transmission offerings, IP service routers, application platforms and other services. The China Telecom deal will allow Alcatel-Lucent will supply its 3G CDMA/EV-DO networking equipment to help China Telecom roll out its wireless broadband network.
In January, China granted 3G licences to China Mobile, China Telecom and China Unicom. China Mobile will use TD-SCDMA, China Telecom uses CDMA2000 technology and China Unicom will use W-CDMA technology. In late March, Alcatel-Lucent won a contract with China Unicom to supply 3G network services in 14 provinces in China.
All of the deals were secured through Alcatel-Lucent Shanghai Bell, the company's joint venture with the Chinese government. Alcatel-Lucent CEO Ben Verwaayen justified keeping the company's wireless infrastructure business partly on the basis of demand of from Chinese markets.
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