Alcatel Signs $1 Billion China Mobile Deal

World's largest carrier to depend on Alcatel-Lucent and Sun to provide equipment and services for 3G rollout.

China Mobile signed a $1 billion deal June 16 with France's Alcatel-Lucent to provide mobile communication equipment and services to the world's largest mobile carrier as measured by subscribers. The carrier also announced a $34.8 million deal with Sun Microsystems to provide IT services and products.

China Mobile is upgrading its network to 3G speeds using TD-SCDMA (Time Division-Synchronous Code Division Multiple Access). The standard is unique to China and part of the country's effort to lessen its dependency on foreign technology.

China began field trials using TD-SCDMA in eight cities earlier this year and aims to officially debut the technology by the Beijing Olympic Games in August.

Under the terms of the Alcatel-Lucent deal, the company will provide China Mobile with mobile core network solutions, wireless network solutions, TD-SCDMA equipment, applications, transmission and IP router equipment, and related services.

Both the Alcatel-Lucent and Sun deals were signed in Washington, where Chinese Vice Premier Wang Qishan is attending an economic summit.

"China Mobile is one of our company's main strategic cooperation partners," said Olivia Qiu, president of Alcatel Shanghai Bell, Alcatel's flagship company in China that negotiated and secured the deal. "The strategic frame agreement with China Mobile reinforces Alcatel-Lucent's position as a trusted partner, as China Mobile relies upon our network solutions and services to meet their growing demand for mobile and now fixed services and in advancing China's telecommunications industry."