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China Unicom Launches OCS Bidding

Communications Weekly, 7/13/09

China Unicom (NYSE: CHU; 0762.HK; 600050.SH) convened a meeting of seven major contractors - Huawei, ZTE (0763.HK; 000063.SZ) subsidiary ZTESoft, Shenzhen Tianyuan DIC, Beijing Digital China Si-Tech Information Technology, Guangzhou Sunrise Electronics Development, Linkage and AsiaInfo Holdings (Nasdaq: ASIA) - to begin bidding for online charging system (OCS) deployment in 23 provinces. Tang Lei, senior expert in ZTESoft's solutions department said his company is currently awaiting the announcement of the bid results. This round of bidding is only open to the seven trial firms that have previously participated in China Unicom's OCS construction, and will attract investment from up to 23 provinces. China Unicom completed OCS trial construction in Beijing and Chongqing municipalities, and Hebei, Fujian, Anhui, Guangdong and Hubei provinces.

One regional Unicom manager said the bids are still primarily focused on testing mobile OCS. The winning firms will be paid a fixed price based on the number of users, divided into five levels: 300,000 users, 500,000 users, 1 mln users, 2 mln users, and 3 mln users, with contracts for less populated provinces like Qinghai and Ningxia, for example, falling into the 500,000 user category. In the seven previous trials, ZTESoft constructed an OCS system for Hebei, the most densely user populated province, which currently has over 3 mln users.

Keywords: mobile network equipment supply contract ASIA AsiaInfo bidding China Unicom Huawei Linkage OCS Digital China Si-Tech 0762.HK 600050.SH Tianyuan DIC CHU trial ZTESoft Sunrise Electronics ZTE 0763.HK 000063.SZ

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