Rumor: Nokia Siemens, Ericsson Lower Bids for TD-SCDMA
ChinaByte, 5/05/09
Yesterday China Mobile (NYSE: CHL, 0941.HK) stated that it had closed bid tendering for its third round of TD-SCDMA equipment procurement. To date, the market share among vendors is as follows: Datang Mobile and Alcatel-Lucent Shanghai Bell 23%, Huawei 20%, ZTE (000063.SZ, 0763HK) 18%, Postcom 15%, Fiberhome (600498.SH) 8%, China Putian (Potevio) (600680.SH) 6%, and 5% each for Ericsson and Nokia Siemens Networks.
An industry insider disclosed that Ericsson and Nokia Siemens entered low bids in hopes of increasing market share. Overall, ZTE offered the lowest bid at RMB 12,300 – 12,600 per carrier-sector - less than half the price the company bid during bidding in the second-round of procurement. Huawei entered the second lowest bid of RMB 15,000 per carrier-sector. Datang Mobile made little change in its bid, keeping it roughly the same as that in the second round.
Editor's Note: It was previously reported that this round of bidding would involve a total of 39,000 base stations and 260,000 carrier-sectors in 200 cities around China. The pricing mentioned above refers to the "model network" price, meaning the basic hardware and software, but not some of the optional software and services, like high-speed data packages and MBMS packages. Each of China Mobile's provincial branches will make its own decision on the optional software, possibly buying it for all or some of the province's capacity, or not buying it at all. Ericsson and Nokia Siemens Networks tend to price their basic hardware and software lower, but their optional software and services more moderately, while Datang tends to price its basic package higher and its optional software at aggressively low prices.
Keywords: ASB 000063.SZ 0941.HK 600498.SH 600680.SH bidding China Mobile CHL Datang Mobile Ericsson Fiberhome Huawei market share Nokia Siemens Networks Postcom procurement Putian TD-SCDMA wireless ZTE 3G base station third-round
Sending
