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China Unicom Announces RMB 4 Bln in PON Contracts

People's Posts and Telecommunications News, 11/03/11

China Unicom (NYSE: CHU; 0762.HK; 600050.SH) closed bidding on November 1 for GPON and EPON network infrastructure tenders covering 25 mln lines, announcing a total of RMB 4 bln in contracts. RMB 15 mln was given for GPON contracts, while the remainder will go towards EPON network construction.

Huawei placed first in overall bids, winning 40% of contracts, followed by Alcatel-Lucent Shanghai Bell (ASB), which rose from last year's share of 8% of tenders to 25%, with ZTE (0763.HK; 000063.SZ) and Fiberhome (600498.SH) trailing with respective shares of 15% and 17%.

GPON and EPON tenders were held separately this year, however the top three winners in the latter category remained Huawei, ZTE and Fiberhome. The top three bidders for contracts to supply GPON equipment, sweeping up a combined total 90% of contracts, were ASB, Huawei and Fiberhome.

Editor's Note: For more background on this topic, please see "Rumor: China Unicom PON Tender Reaches RMB 2.5 Bln" MD 8/16/11 issue.

Keywords: procurement supply contract telecom equipment China Unicom network construction 000063.SZ 0763.HK EPON Fiberhome GPON Huawei ZTE PON ASB 0762.HK 600050.SH 600498.SH CHU fiber optics

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