Alcatel-Lucent signs China deals worth $1.7 bln

NEW YORK, April 27 - Alcatel-Lucent said on Monday it had signed two agreements valued at $1.7 billion with China Mobile and China Telecom to provide network upgrades, integration and maintenance services in 2009.

The agreements were secured through Alcatel-Lucent Shanghai Bell, Alcatel-Lucent's Chinese flagship company.

The agreement with China Mobile is valued at about $1 billion, while the China Telecom deal is valued at about $700 million, Alcatel-Lucent said.

The agreements were signed in Washington, D.C., where on Monday U.S. and Chinese companies signed 32 business deals worth $10.6 billion.

China Telecom also signed contracts with Cisco , Microsoft , Dell and Emerson , while China Mobile deals included those with with HP, Oracle ), Emerson, Sun Microsystems and Cisco.

(Reuters)

Dell in Smartphone Talks With China Mobile

Dell is in talks with China Mobile to offer a smartphone based on the carrier's mobile operating system, a move that would take Dell into a huge but competitive market in China, an analyst said Monday.

The world's number two PC vendor has strongly hinted it plans to offer a smartphone or mobile Internet device, but it has not given any details or said if it will offer such a product in China.

Dell is waiting for China Mobile to pick one or two models from smartphones it has offered and the two firms could reach a deal around August, Zhang Jun, an analyst at research firm Wedge MKI, said in a phone interview.

A Dell smartphone could then hit the Chinese market by the end of the year, Zhang said.

No one from China Mobile was immediately available for comment.

A Dell representative in Beijing declined to comment.

The China Mobile OS, known as Open Mobile System (OMS), is based on Google's Android but will include China Mobile applications like the firm's instant messaging client.

OMS will support China Mobile's next-generation mobile network that is expanding coverage beyond major cities this year. The network's standard was developed in China and is called TD-SCDMA (Time Division-Synchronous Code Division Multiple Access).

China Mobile, the world's biggest mobile carrier, hopes for a flashy Dell addition to currently drab handset offerings that have hurt the take-up of TD-SCDMA so far, Zhang said.

Dell will also offer a TD-SCDMA netbook with the launch of its Inspiron Mini 10 in China this Thursday.

Other firms designing OMS phones include High Tech Computer (HTC), the manufacturer of the G1 smartphone, and Chinese telecommunication equipment providers Huawei and ZTE, Zhang said.

Lenovo Mobile is set this spring to launch the first OMS smartphone, a touchscreen handset called the OPhone, according to research firm BDA.

Lenovo Mobile was sold to a group of investors in January, 2008 by Chinese PC giant Lenovo.

(PC World)

Alcatel-Lucent gets China Unicom 3G contract

Alcatel-Lucent on Monday said it received a contract to deploy and maintain third-generation mobile networks for Chinese telecommunications provider China Unicom in 14 of the country's provinces.

Alcatel-Lucent did not disclose the value of the contract, which will give some of Hong Kong-based China Unicom's cell phone customers faster speeds for surfing the Web and watching video on their phones.

The Paris-based company said it expects the first six networks to be finished in May, in the cities of Tianjin, Baoding, Wenzhou, Taizhou, Guiyang and Guilin.

Alcatel-Lucent already operates some second-generation wireless networks in China, and in a statement it called new deals for networks in the provinces of Fujian, Jiangxi, Heilongjiang and Jiangsu a "strategic breakthrough."

The company, formed when Alcatel SA bought U.S.-based Lucent Technologies Inc. in 2006, said it will also build out the so-called 3G networks in Hebei, Guangxi, Tianjin, Zhejiang, Inner Mongolia, Guizhou, Guangdong, Hunan, Shandong and Xinjiang provinces.

Shares of Alcatel-Lucent rose 15 cents, or 9.4 percent, to close at $1.74.

(Business Week)

China 3G Licenses May Spark $41 Billion of Investment

Jan. 7 -- China issued licenses for high-speed mobile-phone services today, clearing the way for as much as $41 billion of spending on so-called third-generation networks as the government seeks to bolster the slowing economy.

The 3G licenses were granted to China Mobile Ltd., China Unicom Ltd. and China Telecom Corp., Wang Lijian, a Beijing-based spokesman for the Ministry of Industry and Information Technology, said by telephone. Services based on 3G allow faster downloads of Web pages, videos and music to handsets.

The government in China, home to more handset users than the total population of Japan, the U.K. and the U.S., projects its carriers will invest 280 billion yuan ($41 billion) to provide 3G services, bolstering an economy where growth has slowed to a five-year low. The spending would also benefit companies such as Ericsson AB and ZTE Corp., whose equipment powers the networks.

“The need to stimulate the economy is the main driver” for issuing licenses now, said Francis Cheung, head of Asian telecommunications research at CLSA Ltd. in Hong Kong. “If not for the economy, licensing could have dragged on for years.”

The decision came from the government’s top administrative body. Premier Wen Jiabao chaired a Dec. 31 meeting of the State Council, the nation’s cabinet, that gave the Ministry of Industry and Information Technology approval to issue the licenses.

Stimulate Consumption

The State Council said in a Dec. 31 statement about the decision that it expected 3G to stimulate domestic consumption. All three of China’s telephone carriers are owned by the state.

China’s economy expanded 9 percent in the third quarter of 2008, the slowest pace since 2003, as the global financial crisis eroded demand for its exports of electronics, toys and shoes. In November, the World Bank forecast the Chinese economy will grow 7.5 percent this year, the slowest in almost two decades.

Economic growth of less than 8 percent would fuel social unrest in China as the nation fails to create enough jobs for the 20 million people joining the urban workforce annually, according to economists including Societe Generale SA’s Glenn Maguire.

The government has announced a 4 trillion yuan ($585 billion) stimulus package, cut taxes and increased rebates for exports to spur growth.

Li Yizhong, head of the Ministry of Industry and Information Technology, said last month he anticipates carriers will spend 280 billion yuan on 3G networks and services in 2009 and 2010. Total spending by all companies for 3G products and services may be 2 trillion yuan over three years, the China Securities Journal reported Jan. 5, citing Chen Jinqiao, deputy chief engineer of the regulator’s telecommunications research institute.

3G Standards

China Mobile, the world’s largest wireless-phone company by market value, will operate services based on the domestically developed time division synchronous code division multiple access technology known as TD-SCDMA, Wang said. Unicom will offer services based on wideband CDMA, or W-CDMA, while China Telecom will operate CDMA2000 services, he said.

Ericsson AB, the world’s biggest maker of mobile-phone equipment, expects “a good year” in China in 2009, Chief Executive Officer Carl-Henric Svanberg said in October, citing the country’s plans to roll out 3G services.

“The biggest winners are the equipment makers,” CLSA’s Cheung said. “Foreign vendors are going to get the most contracts in dollar terms.”

China Mobile and China Unicom may each invest 100 billion yuan to build their 3G networks, while China Telecom may spend 80 billion yuan, Cheung said.

NTT DoCoMo

Faster 3G services in other markets have at the same time failed to boost the profits of the carriers that introduced them. NTT DoCoMo Inc., Japan’s biggest mobile-phone company, offered the world’s first 3G service in 2001. The Tokyo-based carrier failed to meet its target for subscriber additions in the first year after a delay in handset deliveries.

3 Group, which offers 3G services in seven markets in Europe and Australia, has failed to turn a profit since starting services in 2003, dragging down profit at parent Hutchison Whampoa, controlled by Hong Kong billionaire Li Ka-shing.

China may have 103 million 3G users by the end of 2011, about 11 percent of the country’s total of mobile-phone subscribers at that time, according to Tim Smart, Hong Kong-based regional head of telecommunications research at Macquarie Group Ltd. The nation had 633.8 million mobile-phone users at the end of November, according to government data.

(Bloomberg)

Foreign investors in China get telecoms go ahead

BEIJING: China has relaxed access for foreign investors to its booming telecommunications industry by cutting minimum required investments, but retained a ban on foreign majority ownership of ventures.

The Cabinet decision Friday could help to attract new investment into an industry that is undergoing a sweeping government-mandated restructuring aimed at boosting competition.
The minimum capital required for a foreign-financed company to offer national-level or local basic services was cut by 50 percent, according to a notice on its Web site.

But the Cabinet retained a restriction limiting foreign investors to owning no more than 49 percent of a company offering basic services and 50 percent for value-added services.
The change could help new, small Chinese businesses by giving them easier access to foreign financing, increasing competition and speeding innovation.

It cuts minimum required capital for a foreign-financed company offering basic services at a national level to 1 billion yuan (US$145 million) and at a local level to 100 million yuan (US$14.5 million), the announcement said.

The industry overhaul, announced in May, is meant to revive competition by rearranging state-owned phone companies into three large groups, each with mobile and fixed-lined operations.
Chinese customers are flocking to mobile services, which has turned China Mobile Ltd., the dominant carrier, into the world's biggest phone company by subscribers.

By contrast, the major fixed-line carriers, China Telecom and China Netcom, have seen subscriber numbers fall and are struggling to attract new customers.
China Mobile says its profits for the first half of this year surged 45 percent over the same time last year as customer numbers soared.

The launch of third-generation, or 3G, operations that support Web surfing, video and other services is expected to boost growth in mobile revenues still further.

Spain's Telefonica SA said last week it would spend 800 million euros (US$1.2 billion) to expand its holdings in Netcom and China's No. 2 mobile company, China Unicom Ltd., which are due to merge. Telefonica said the investment would make it the combined company's biggest shareholder, with a 5.5 percent stake.

(AP)

China Mobile trails on 3G technology

The head of China Mobile, the world’s largest mobile phone group, said the country’s homegrown third generation mobile technology was “a few years behind” other international standards because of problems with handsets.

The news is a blow because China Mobile is expected to build its future 3G services on the TD-SCDMA standard, which is being developed in China. The group’s rivals are expected to adopt the European WCDMA and US’s CDMA2000 3G standards.

Wednesday’s admission comes as two other mobile groups have set out plans to contest its dominance – China Mobile has 70 per cent of the 2G market in China. China Unicom wants to become the biggest 3G operator, while China Telecom aims to win 15 per cent of the 3G market by 2010.

Wang Jianzhou, China Mobile’s chairman and chief executive, said: “[TD-SCDMA’s] network operation is normal but there are still a lot of problems. Problems remain in handset choices, quality, performance and prices, where most users complained.

“Compared with other 3G technologies, TD-SCDMA is still a few years behind.”

China Mobile has spent Rmb15bn ($2bn) on trials using TD-SCDMA in 10 Chinese cities since April, and plans to expand the trial to 38 cities by June.

China has not announced which 3G standards its operators are to adopt but TD-SCDMA is expected to go to China Mobile. China Unicom has said it should win a WCDMA licence while China Telecom is likely to switch its 2G service to CDMA2000.

China has been backing TD-SCDMA with state money and regulatory support, as it aspires to reduce the dependence of local telecoms equipment companies on foreign technology.

The government has delayed issuing 3G licences for years as it waits for TD-SCDMA to develop. This year, Beijing finally announced the reorganisation of its telecoms companies into three operators, as it prepares to award three 3G licences.

Apart from asking China Mobile to test the local standard, China is expected to announce other measures to balance the industry and make it easier for smaller competitors.

Mr Wang said the company had borne its fair share of social responsibility.

“We have built the TD-SCDMA network, provided mobile services to rural customers and acquired [fixed-line operator] China Tietong, which is loss-making. We have to bear its Rmb40bn debt,” said Mr Wang.

China Mobile said net profit for the first half of this year jumped 44.7 per cent to Rmb54.8bn. Revenue rose 17.9 per cent to Rmb196.5bn.

(FT)

Nokia Investing $150M More In Direct Venture Arm

Nokia is investing about $150 million more in its direct venture arm, Nokia Growth Partners, more than doubling the size of its current fund. The priority for the new money: India and China, it says. It will start venture arm in those countries soon.

Menlo Park, CA-based Nokia Growth Partners was set up in 2004 to directly manage $100 million of Nokia's money. Its investments include mobile/online streaming service Kyte, Finland-based graphics firm Bitboys, and India's Sasken Communications, among others. In total, Nokia's total venture investments are more than $900 million...it has invested more than $600 million into early-stage global funds of BlueRun Ventures, formerly Nokia Venture Partners, since 1998.

Globe and Mail: Rick Simonson, Nokia's CFO, said the company is not using Nokia Growth Partners to try to find the next Google or Amazon of the mobile Internet. Instead, it looks for firms that have existing products and customers, in which it can invest $8-million to $10-million during the life of the relationship and see a twofold return on investment.

From the release: Target investments include companies creating innovative mobile applications and services that encourage rapid adoption of mobile solutions, such as context and location based services, mobile payments, mobile advertising, music and entertainment and other mobile services and software.

( mocoNews.net )

Alcatel Gains On China Mobile's Deal

LONDON - Struggling French network supplier Alcatel-Lucent got a much needed boost on Tuesday following news that it had won a major contract involving the third-generation mobile-phone standard being developed by China Mobile.

Alcatel-Lucent closed up 5.1%, or 22 euro cents (34 cents), at 4.55 euros ($7.05) in Paris on Tuesday, after it confirmed late Monday that it had signed a $1.0 billion contract for 2008 with China Mobile . The deal was made through Alcatel-Lucent's Chinese unit Alcatel Shanghai Bell.
The president of the division, Olivia Qiu, said the contract reinforced Alcatel's position as a "trusted partner" of China Mobile. "China Mobile relies upon our network solutions and services to meet their growing demand for mobile, and now fixed services, and in advancing China's telecommunications industry."

Paris-based Alcatel-Lucent will provide China Mobile with mobile and wireless network gear. But most important of all, according to Nomura analyst Richard Windsor, is the fact that it will supply equipment for the snappily named Time Division-Synchronous Code Division Multiple Access, a 3G standard being developed by China Mobile.

China wants to wean the country's growing telecom industry off its supposed dependence on foreign technology, and China Mobile has been tasked with developing the new standard, which is different than the two main versions used in the rest of the world. 3G phones promise fast communications, the ability to easily download videos and music, and other innovative applications.

China Mobile company started running commercial trials for its system in eight cities in April, and is hoping to roll out the technology in time for the Olympic Games in August.

Since Alcatel merged with America's Lucent in 2006, the company has been struggling with profitability, releasing a string of profit warnings and operating losses. In April the company warned that it expected the market for telecom equipment to be stagnant for the year. Its shares have lost more than half their value over the past year.

(Forbes)

The iPhone gets two footholds in China

It’s not China Mobile — and it’s not the mainland — but it’s a start.

Hutchison Telecom, a small Hong Kong-based carrier controlled by Li Ka-shing (more on him below), announced on Thursday that it had struck a deal with Apple (AAPL) to bring the iPhone to Hong Kong and Macau, two former colonies that are now special administrative regions of the People’s Republic of China.

Hutchison (HTX) played an important role in the early days of mobile telephony. In 1994 it launched the Orange brand in the U.K. and in 1997 invested heavily in VoiceStream (now T-Mobile) in the U.S. By 2000 it had sold its interests in both companies and was using the proceeds to develop a global 3G business. Last year it sold controlling interest in its popular “Hutch” product in India to Vodafone for $13.1 billion.

In addition to Hong Kong and Macau, it offers 2G and 3G services in Australia, Ghana, Indonesia, Israel, Sri Lanka, Thailand, and Vietnam.

Li Ka-shing — nicknamed “Superman” by the Hong Kong business press — is the picture of a 21st century tycoon. According to Wikipedia, he is the eleventh richest man in the world and the richest person of Chinese descent, with an estimated wealth of $26.5 billion.

(Fortune)

SK signs deal for $1 bln in China

HONG KONG, May 27 - SK Telecom said on Tuesday it has agreed to join a consortium investing $1 billion in the construction of a Beijing development centre that will research and design digital content and technology.

The South Korean firm has signed an initial agreement with China's government to establish the complex in the capital city's southeast along with several other subsidiaries of the SK group, including SK Engineering & Construction.

"SK Telecom will create a ubiquitous environment with advanced IT network and facilities across the complex and provide content production studios and equipment as well as operate a one-stop service centre that will provide customer support," it said in a statement.

(Reuters)

China Mobile shares lose $25bn

China Mobile, the world's largest phone company by users, lost more than $25 billion in market value in Hong Kong trading after the government said it will reorganize the industry to help smaller operators.

The shares fell 7.5 per cent to HK$115.70 as of the midday trading break, the biggest drop in more than six years. The stock was the largest contributor to the MSCI Asia Pacific Index's 1.7 per cent decline.

The revamp threatens the dominance of China Mobile, which controls two-thirds of the nation's wireless-phone market, as the mergers help smaller carriers strengthen their ability to compete for the nation's 1.3 billion people. Goldman Sachs Group today cut China Mobile's rating to “sell” on the government plan.

Under the government plan, the parents of fixed-line carrier China Telecom will buy a mobile-phone network from China Unicom's parent, which in turn will merge with the company that controls China Netcom, the Ministry of Industry and Information said in a statement on May 24th.

China Mobile Communications, the state-owned parent of China Mobile, will take control of fixed-line carrier China Tietong Telecommunications.

The government said it plans to create a more balanced market structure through the reorganization and new regulations, according to the statement jointly issued with the Ministry of Finance and the National Development and Reform Commission. The statement didn't give details of the rules.

The new regulatory regime may “seriously threaten” China Mobile's advantages, said Goldman Sachs analysts Helen Zhu and Lucy Liu, who cut the rating from “neutral” and lowered the 12-month share-price estimate to HK$105 from HK$135.

After the revamp is completed, China will issue three licenses to offer third-generation high-speed mobile services. China had 583.5 million mobile-phone users at the end of April, exceeding the combined populations of the US and Japan.

(ireland.com)

Ericsson Deals With China Worth $1.44 bln

Beijing, Ericsson Telephone Co. (ERIC), a provider of telecommunications equipment and related services, on Monday announced the signing of US$ 1.44 billion worth GSM expansion framework agreements with two Chinese mobile operators, China Mobile and China Unicom.

The deals, valued at about US$ 1.3 billion and US$ 140 million, respectively, were signed in a ceremony in Beijing, attended by Chinese Premier Wen Jiabao and Swedish Prime Minister Fredrik Reinfeldt, who is in China on an official visit. The expansion projects are set to be completed in 2008.

China Mobile and China Unicom together provide mobile services to about 550 million subscribers in China. China Mobile has a registered capital of US$ 7.4 billion and assets of more than US$ 100 billion. China Unicom owns gross assets of over US$ 20.6 billion, with total subscribers of 162.5 million by December 2007.

Ericsson said that the expansion projects will allow China Mobile and China Unicom to boost their network capacity and performance, while creating new revenue streams from data services and offering improved user experience.

Under the framework deal with China Mobile, Ericsson will be one of the main suppliers of core and radio network equipment, along with related technical support and services, to expand GSM/GPRS coverage and capacity in 19 regions across China. The Stockholm, Sweden-based company will also provide power-saving features and contribute for the reduction of carbon-dioxide emissions, following the "Green Action Program", a Strategic Cooperation Memorandum previously signed between the two parties.

Under the deal with China Unicom, Ericsson will be the major supplier and help expand GSM networks in 10 regions across China, including Beijing. Ericsson will also supply multimedia solutions for WAP services to help provide new multimedia services and applications.

Deliveries to both operators have already started, Ericsson said. The ceremony was also attended by Wang Jianzhou, president of China Mobile, Shang Bing, president of China Unicom, Michael Treschow, chairman of Ericsson, Carl-Henric Svanberg, president and chief executive officer of Ericsson and Mats Olsson, president of Ericsson Greater China.

While commenting on the deals, Svanberg said, "The new framework agreements announced today further strengthen Ericsson's position as the leading mobile communications supplier in the Chinese market."

"It reflects our vision of providing communications for all, and we are proud to be an integral part of China's economic and social development," Svanberg added.

Earlier this month, Ericsson said that it has been selected by SmarTone-Vodafone in Hong Kong as the only supplier for network enhancements to offer the operator's mobile customers advanced mobile broadband and multimedia services.

Under the three-year agreement, Ericsson will provide SmarTone-Vodafone HSPA-enabled radio access network, which includes Multimedia Broadcast Multicast Service, or MBMS, a functionality that enables mobile-TV services to be broadcast.

Ericsson said on March 26 that its Gigabit Passive Optical Network solution, or GPON solution, has been selected by Grameen CyberNet to provide a fiber-to-the-home, or FTTH, network in Bangladesh.

Ericsson is slated to announce its first-quarter results on April 25.

ERIC closed Friday's trade at $19.80, down $0.21, on a volume of 3.58 million shares. In pre-market trading, the company's shares rose $0.11, or 0.56%, to $19.91.

(Global Financial Newswires)

china Mobile to invest $800ml in Pakistan

Keeping in view the business prospects in the Pakistani cellular market, China Mobile Communication Corporation has plan to invest $800 million by the end of this year, which would provide jobs to around 5,000 people.

The company already invested $700 million in this sector. China Mobile Communication Corporation Chairman and CEO Wang Jianzhou expressed these views during a meeting with Prime Minister Syed Yousaf Raza Gillani here on Saturday.

He said the company was launching its brand by the name of ZONG today. He said that China Mobile is the biggest cellular phone company in the world with over 380 million subscribers and this investment in Pakistan was the company’s first foreign investment anywhere in the world.

He said that by the end of this year his company would install 5180 new sites, which would cover 90 percent areas of Pakistan. He apprised the prime minister that the company hopes to expand its activities in the country and build its network.

The company would also bring new equipment to the country, train people and become an active player in the country’s telecom sector. He also expressed interest for investment in the education and environment sectors, which the prime minister appreciated. Prime Minister informed the delegation that China was all weather, time-tested friend and both the counties had strategic and close relationship in every field.

The entry of China Mobile into the Pakistani market would augur well for further enhancement of economic relations between the two countries, he added. The prime minister said that Pakistan’s telecom sector had gone through a rapid growth and this increase in teledensity in the country had created several growth opportunities.

(Pakistan Daily)

Nokia in $2bn contract with China Postel

• continue to take the lead position in China, the world's largest cellular phones market.

Hongkong - After signing a $2 billion handset supply contract with China's largest mobile phone distributor, Nokia can tell all competitors to forget about challenging its leading position this year in the world's largest market for cellular phones.

Nokia said Friday it had inked a deal with China Postel to sell $2 billion worth of handsets and mobile devices in China in 2008. In addition, the parties have agreed to strengthen strategic ties, especially with regard to development of distribution channels and marketing.

China Postel currently has about a 30% share of the wholesale segment of the Chinese cell phone market. Nokia has been distributing its cell phones across China through China Postel since 1998. Nokia also won China's largest handset order from China Postel, $2.5 billion, in 2007.

It is believed that the lower value of contract this year may be attributable to the fall in cell phone prices.

David Tang, vice president of sales for Nokia China, said Nokia has been a leader in the Chinese mobile phone market since 2004. With its best-selling N95, Nokia saw more than 38% growth in sales and sold a total of 70.7 million mobile phones in China in 2007, gaining a dominant 35% share of Chinese customers.

Total in-country sales of 6.4 billion euros ($9.9 billion) in 2007 made China Nokia's single largest market, taking 13% of global sales. The world's largest cell phone producer said last month it will expand the sales of its mobile smart phones and will increase the penetration of cell phone usage in China's rural areas in 2008.

(Forbes)

ZTE Enters U.S. Mobile Phone Market

ZTE USA, a subsidiary of China's largest telecom equipment manufacturer ZTE Corp., on Thursday began offering its first mobile phone for the U.S. market.

The ZTE C88 isn't a ground-breaking device, but it gives mobile users some freedom and a simpler alternative to expensive computer-like phones. It costs between $129 and $149, with basic features including Bluetooth, a camera, and Internet browsing.

As its core business, ZTE specializes in wireless and networking products such as CDMA platforms and WiMax equipment. Last year, Mexico City's Mayor Mercelo Ebrard signed an agreement with ZTE to build a Wi-Fi network connecting schools and government offices. The free citywide Wi-Fi network is expected to give access to 8 million residents in Mexico City.

(Information Week)

Huawei supplies Internet device to Vodafone

• customers can look forward to enjoying high-speed wireless access.

SHANGHAI - Huawei Technologies Co, China's biggest maker of telecommunications equipment, said on Tuesday it had started supplying an advanced device for Internet connection to British mobile phone company Vodafone .

The Vodafone Mobile Broadband USB Modem Stick or E172, which will facilitate fast
Internet browsing, instant access and the uninterrupted ability enabling the data-uploading rate up to 2Mbps and downloading at 7.2 Mbps, will be offered to Vodafone customers in Europe.

"We are excited to have launched the E172 in collaboration with Vodafone," said Steven Lau, director of Huawei European Terminal Department, "We are confident that customers will be delighted with the mobile lifestyle it will bring".

Huawei is a leader in providing next generation telecommunications network solutions for operators around the world, competing with rivals such as Nortel Networks and Cisco Systems .

(Reuters, TMCnet)

China's ZTE wins Libya Tel deal for WiMAX network

• WiMAX is an advanced wireless multimedia network for users of mobile phones and other devices.

SHANGHAI, China's second-largest telecoms gear maker, ZTE Corp said on Thursday it has signed a deal with Libya Telecom & Technology to build Africa's first commercial WiMAX network.

The network will cover eight major cities in Libya, including the country's capital Tripoli, and is expected to be completed by the third quarter of 2008, ZTE said in a statement.

ZTE signed a deal last year to provide WiMAX equipment to No. 3 U.S. wireless firm Sprint Nextel Corp , and has also built 21 commercial WiMAX network trials in other markets including Singapore, Thailand and Saudi Arabia, the statement added.

It did not disclose a value for the deal. Shenzhen-based ZTE's cross-town rival, Huawei Technologies Co Ltd , said early this week that it had won an order for a commercial WiMAX network in Bulgaria from operator TransTelecom.

WiMAX is an advanced wireless multimedia network for users of mobile phones and other devices.

Reuters