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China Mobile Settles GSM Outsourcing
April 30, 2007 |
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The result of China Mobile's (CHL) auction for GSM network upgrades, which was carried out at almost the same time as its TD bidding, has now been revealed.
Huawei and ZTE combined to take about 25% of the projects, Shanghai Bell-Alcatel about 20%, and Ericsson and Nokia around 50%. However, the bidding won't be formally completed and the contracts won't be signed until May.
Although Chinese domestic company Huawei and ZTE's total shares won from GSM bidding is less than the 50% of shares they won from TD bidding, experts quoted in local media say this is still a big victory for them as they account for no more than 5% in the 2G market of China, which has been monopolized by foreign companies.
China Mobile plans to make a total of CNY35 billion in purchases for its GSM upgrades.
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