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Huawei Denies Low Bid Price for CDMA Equipment

Southern Metropolitan News, 8/19/08

It is claimed that Chinese telecom equipment manufacturer Huawei quoted a price of RMB 690 mln to China Telecom (NYSE: CHA; 0728.HK) for CDMA equipment procurement, with a senior executive at another telecom equipment manufacturer stating that China Telecom has a budget of RMB 10 bln for this round of purchasing. Huawei's bid significantly undercut bids from foreign equipment vendors such as Alcatel-Lucent.

A Huawei executive denied that it had undervalued its bid stating, "Our quote may have been lower than foreign equipment manufacturers, but it was more or less the same as that of domestic companies. Reportedly ZTE (0763.HK; 000063.SZ) had valued its bid at RMB 7 – 8 bln; Nortel, at RMB 12 bln; and Alcatel-Lucent at RMB 14 bln.

Editor's Note: For more background on CDMA network bidding, please see "China Telecom Evaluates CDMA Bids, Plans EV-DO Trials", MD 8/13/08 issue, and "Rumor: China Telecom to Invest RMB 30 bln in CDMA Network", MD 7/16/08 issue.

Keywords: network construction 000063.SZ 0728.HK 0763.HK Alcatel Alcatel-Lucent bidding CDMA CHA China Telecom Huawei Nortel procurement telecom equipment wireless ZTE trial

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