ZTE wins China Telecom contract
November 19 2008 - 2:05 pm ET | Gary E. Salazar | RCR Wireless News
China Telecom Corporation Ltd. will pay ZTE Corp. $194 million to build the first phase of a CDMA network that will cover both wireless and service networks, the company announced today.
The project is slated to start this year and ZTE was selected after a comprehensive bidding process.
According to the agreement, ZTE will provide China Telecom with CDMA wireless equipment, technical documentation and services valued at $185 million and service network equipment, technical documentation and services valued at $8.7 million. Other contracts for the construction of the core network and additional equipment will be negotiated by the two companies.
The contract is another example of ZTE gaining strength in the CDMA market. According to a Yankee Group report, ZTE is among the leaders in CDMA equipment providers in Asia Pacific, Europe, Africa and the Middle East.
According to ZTE, it is the leader in the CDMA market in China, owning one-third of domestic shares. Earlier this month, Nortel Networks Ltd. announced it won a contract with China Telecom to deliver CDMA equipment in seven provinces.
