Alcatel, China Announce $1B in Telecom Deals

With French President Nicolas Sarkozy and Chinese President Hu Jintao in attendance, French telecommunications equipment maker Alcatel-Lucent signed $1.11 billion in deals with China Mobile and China Unicom on Nov. 26. The transactions were secured through Alcatel-Lucents Chinese company, Alcatel Shanghai Bell.

Under the terms of the deal with China Mobile, Alcatel-Lucent will provide mobile solutions for China Mobiles network expansion plans. The package includes GSM/GPRS/EDGE (Enhanced Data for Global Evolution) radio and core networking equipment, mobile applications, IP routers and optical networking equipment.

The agreement with China Unicom includes CDMA (Code Division Multiple Access) networking equipment, GSM/GPRS radio and core networking equipment, mobile applications, IP routers, optical networking equipment and related services to support China Unicoms network deployment and expansion.

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The agreement also includes the expansion and upgrade of China Unicoms third-generation CDMA1xEvDO (Evolution Data Optimized), a high-speed data network in Macau.

“Alcatel-Lucent and China Unicom are in long-term cooperation partnership,” Chang Xiaobing, chairman of China United Telecommunications, said in a statement released in Paris. “I believe the agreement we signed today will facilitate our business successes.” China Mobile President Wang Jianzhou added, “China Mobile and Alcatel-Lucent have established a strong relationship through years of close cooperation.”

Alcatel-Lucent has approximately 170 customers in more than 90 countries and the company has deployed commercial 3G systems for more than 70 operators worldwide. According to market research firm Ovum-RHK, Alcatel-Lucent leads the worldwide optical networking market with a 23.3 percent market share.

Frederic Rose, president of Alcatel-Lucents business in Europe, Middle East, Africa and Asia, and president of Alcatel Shanghai Bell, added in a statement released in Paris, “Alcatel-Lucent has experienced a significant year in China with an increased market share in both fixed and mobile market sectors.”

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