Alcatel-Lucent is aiming for more Chinese 3G wireless growth with the signing of two framework agreements valued at a total of USD1.7 billion with China Mobile and China Telecom.
The deals will have Alcatel-Lucent provide network upgrades, integration and maintenance services in 2009. The agreements were secured through Alcatel-Lucent Shanghai Bell, Alcatel-Lucent's Chinese flagship company, and the contracts were signed yesterday in the United States.
Under an agreement valued approximately USD1 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. With China Telecom, in a deal valued at approximately USD700 million, Alcatel-Lucent will supply its 3G CDMA/EVDO 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.
China Mobile and China Telecom were granted 3G licenses in January 2009 for TD-SCDMA and CDMA/EV-DO technologies, respectively. The companies 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.