Update: Details of China Telecom CDMA Bidding Results
China Business News, 10/17/08
A source at a telecommunications equipment firm confirmed today that China Telecom (NYSE: CHA; 0728.HK) has finalized the results for its joint first and second rounds of CDMA equipment bids. Combining the two rounds expanded the scope of the tender from 81 cities to 342 cities throughout China, and will increase China Telecom's total number of base stations from an existing base of nearly 90,000 to 130,000. China Telecom has requested equipment manufacturers complete all necessary network construction work by the end of this year.
The newly added orders for radio transceivers were distributed to manufacturers as follows: 25% for Huawei, 25% for ZTE (0763.HK; 000063.SZ), 19% for Alcatel-Lucent, 16% for Motorola, 14% for Nortel and 2% for Samsung.
The breakdown by cities was as follows: 157 cities for ZTE, 53 cities for Alcatel-Lucent, 47 cities for Huawei, 44 cities for Motorola, 41 cities for Nortel and 13 cities for Samsung.
ZTE will provide 32% of the base stations procured through this bid, most of which will be newly constructed, meaning ZTE will not need to disassemble and remove a large amount of previously installed equipment from other vendors. In total, it is expected to earn RMB 2 bln from providing radio access, core and business networks. Huawei will provide 20% of the total number of base stations, but 60% of these will be in replacement of stations previously provided by other manufacturers. Alcatel-Lucent and Motorola have orders for around 20,000 base stations each.
Editor's Note: For more background, please see "China Telecom Awards CDMA Equipment Contracts", MD 10/15/08 issue.
Keywords: mobile network equipment 000063.SZ 0728.HK 0763.HK Alcatel-Lucent bidding CDMA CHA China Telecom Huawei Motorola network construction Nortel Samsung wireless ZTE base station procurement
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