Alcatel-Lucent (ALU) has signed a US$120 million agreement for mobile communications solutions and service with China Unicom and a US$340 million deal with China Mobile.

The China Unicom agreement encompasses a range of network projects China Unicom has undertaken or plans to undertake in 2007. The projects include a CDMA2000 1xEV-DO Rev. A high-speed data network upgrade to be implemented in China Unicom's network in Macau, as well as a further expansion in the CDMA core network, radio solutions, and applications that will support China Unicom's broader mobile network expansion. The agreement also provides for GSM/GPRS/EDGE core and radio network solutions and optical network components in support of China Unicom's GSM service offerings.

"The agreement we are signing with China Unicom is significant because of the scope of solutions it involves," said Frederic Rose, president of Alcatel-Lucent Asia Pacific. "It meets China Unicom's demand for near term expansion and provides a means to sustain growth in the future."

Under the terms of the China Mobile agreement, Alcatel-Lucent will provide China Mobile with GSM/GPRS/EDGE radio and core network equipment, customized solutions and related services that will support China Mobile's GSM/GPRS/EDGE network expansion programs in 2007. The network expansion China Mobile plans to undertake with the solutions provided by Alcatel-Lucent will enable the operator to meet continued strong demand for mobile service in China while reducing network operating costs.

"China's mobile communications market continues to have enormous potential, and our goal is to help our customers realize that potential and achieve their business objectives," said Rose.

This agreement is the latest in a series of contracts that Alcatel-Lucent has concluded with China Mobile, the most recent being an agreement to provide TD-SCDMA solutions for China Mobile's trial network expansion.