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China Mobile to Launch New Round of GSM Equipment Bidding

China Times, 1/12/08

An employee with a telecom equipment manufacturer has revealed that China Mobile (NYSE: CHL; 0941.HK) is soon to launch a new round of GSM equipment procurement. Manufacturers are actively preparing to submit bids, but no actual costs have been revealed.

China Mobile spent RMB 32 bln on GSM equipment last year, with Ericsson, Huawei and Nokia Siemens Networks winning the largest shares - 26.5%, 23.6% and 19.7% respectively, by number of transceivers (TRXs). Alcatel-Shanghai Bell (ASB) followed closely in fourth place, and ZTE (0763.HK; 000063.SZ) broke the 6% barrier for the first time. Motorola's share fell slightly, with Nortel taking only a very small percentage.

Equipment prices have been dropping over the last few years and are expected to continue to do so in 2008, possibly causing some suppliers to withdraw from bidding due to profitability concerns.

Keywords: China Mobile CHL 0941.HK GSM procurement supply contract bidding mobile network equipment Ericsson Huawei Nokia Siemens Networks ASB ZTE ZTE 0763.HK 000063.SZ Motorola Nortel wireless

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