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Rumor: ZTE, Huawei, ASB Win China Telecom IMS Contracts

Communications Weekly, 6/12/11

Chinese telecom equipment manufacturers ZTE (0763.HK; 000063.SZ), Huawei, and Alcatel-Lucent Shanghai Bell (ASB) have won major IMS tenders in ten provinces from China Telecom (NYSE: CHA; 0728.HK), according to an industry source. ZTE and Huawei have both won tenders in Zhejiang, Fujian, Jiangsu, and Guangdong provinces. Huawei has won exclusive contracts for Hunan, Shaanxi, and Xinjiang, while ZTE has won an exclusive tender for Sichuan, and ASB has won contracts for Shanghai and Shandong.

According to an anonymous source within China Telecom, although a number of foreign firms participated in the bidding, the three domestic manufacturers won the contracts due to their familiarity with local conditions and their ability to guarantee fast response times and tailored services.

The source went on to say that China Telecom announced different requirements for each province since differences in network infrastructure and competitive environment meant that business needs and bandwidth capacity vary greatly from province to province.

There are two drivers behind China Telecom's latest IMS tender, according to the source: first, the large-scale deployment of video services, and second, increased capacity to support Voice over Broadband (VoBB) services.

Editor's Note: For more background on this topic, please see "[url=]ZTE Wins China Telecom IMS Supply Contract/url]" MD 5/30/11 issue.

Keywords: network construction fixed-line VoIP IPTV China Telecom telecom 000063.SZ 0763.HK Huawei telecom equipment ZTE ASB IMS supply contract 0728.HK CHA

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