Alcatel-Lucent signed two framework agreements valued USD 1.7 billion in total with China Mobile and China Telecom, to provide network upgrades, integration and maintenance services in 2009.
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.
Under an agreement valued approximately USD 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 USD 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.
Leveraging Alcatel-Lucent’s technologies and solutions, China mobile and China Telecom will be able to further enhance their network capacity and performance, helping them provide end-users with a wide variety of high-quality mobile services.
“We are honoured to have been selected as a major provider of cutting-edge solutions for China Mobile and China Telecom. Alcatel-Lucent Shanghai Bell is fully committed to supporting their rapid transformation to 3G, and their smooth evolution to LTE/4G in the future”, said Olivia Qiu, head of Alcatel-Lucent activities in East Asia and President of Alcatel-Lucent Shanghai Bell. “The agreements also set the stage for future collaboration with these customers on the ongoing improvement of their networks.”
China Mobile and China Telecom are two strategic partners of Alcatel-Lucent in China. 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 USD 230 million upgrade of its CDMA mobile network.
These agreements build on Alcatel-Lucent’s established position as a leading 3G supplier in China. China Unicom, a leading fixed and mobile service provider in China, recently selected Alcatel-Lucentto deploy 3G W-CDMA networks in 14 Chinese provinces.